- accredited investor
ac·cred·it·ed investor /ə-'kre-də-təd-/ n: an investor that qualifies under the Securities Act of 1933 and related Securities and Exchange Commission regulations as one having at least a specified net worth and a certain level of knowledge and experience in financial matters
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
- accredited investor
A high-net-worth investor who is permitted to invest in certain types of higher risk investments without the securities being registered with the U.S. Securities and Exchange Commission (SEC). Under federal securities law, a company that offers or sells its securities must register the securities with the SEC or find an exemption from the registration requirements. Selling to accredited investors is one such exemption. The term generally includes wealthy individuals and organizations such as corporations, endowments, or retirement plans.Category: Business, LLCs & Corporations
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.
- accredited investor
USAFor purposes of the SEC's rules and regulations, any person who meets any one of the following categories at the time of the sale of the securities to that person:• Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer.• Any individual whose net worth, or joint net worth with that person's spouse, at the time of purchase exceeds $1 million.• Any individual who had an income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.• Any bank; any savings and loan association, whether acting in its individual or fiduciary capacity; any registered broker or dealer; any insurance company; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company licensed by the US Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, with total assets in excess of $5 million; or any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 where investment decisions are made by a plan fiduciary that is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5 million or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors.• Any private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.• Any organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5 million.• Any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring the securities offered.• Any entity in which all of the equity owners are accredited investors.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
Look at other dictionaries:
Accredited investor — is a term defined by various securities laws that delineates investors permitted to invest in certain types of higher risk investments including seed money, limited partnerships, hedge funds, and angel investor networks. The term generally… … Wikipedia
Accredited Investor — A term used by the Securities and Exchange Commission (SEC) under Regulation D to refer to investors who are financially sophisticated and have a reduced need for the protection provided by certain government filings. Accredited investors include … Investment dictionary
accredited investor — Fin an investor whose wealth or income is above a particular amount. It is illegal for an accredited investor to be a member of a private limited partnership … The ultimate business dictionary
accredited investor — Refers to an individual whose net worth, or joint net worth with a spouse, exceeds $1,000,000; or whose individual income exceeded $200,000 or whose joint income with a spouse exceeded $300,000 in each of the 2 most recent years and can be… … Financial and business terms
Non-Accredited Investor — An investor who does not meet the net worth requirements for an accredited investor under the Securities Exchange Commission s Regulation D. A non accredited individual investor is one who has a net worth of less than $1 million (including… … Investment dictionary
Institutional investor — Institutional investors are organizations which pool large sums of money and invest those sums in companies. They include banks, insurance companies, retirement or pension funds, hedge funds and mutual funds. Their role in the economy is to act… … Wikipedia
institutional accredited investors — (IAIs) USA Any institutional investor which falls within any of the following categories of accredited investor at the time of the sale of the securities to that investor: • Any bank; any savings and loan association, whether acting in its… … Law dictionary
sophisticated investor — USA An investor who either alone or together with his, her or its purchaser representative, has sufficient knowledge and experience with financial and business matters that the investor can evaluate the risks and merits of the investment. This… … Law dictionary
Angel investor — An angel investor or angel (known as a business angel or informal investor in Europe), is an affluent individual who provides capital for a business start up, usually in exchange for convertible debt or ownership equity. A small but increasing… … Wikipedia
Hedge fund — A hedge fund is a private investment fund open to a limited range of investors which is permitted by regulators to undertake a wider range of activities than other investment funds and which pays a performance fee to its investment manager.… … Wikipedia