Definition of Accredited Investor

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Accredited Investor -- An affluent investor who is not considered (under Securities and Exchange Commission Regulation D) to be one of at most 35 people permitted to place money in a Private Limited Partnership. To count as an accredited investor, an individual must possess a net worth that does not go below $1 million or a yearly income of no less than $200,000. The individual must invest at least $150,000 and this must constitute no more than 20% of net worth. Accredited investors are of service to private limited partnerships, which need them to obtain a greater amount of capital than could be got from the payments of 35 less-rich persons.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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