Investor TypesAlina Trigub2020-02-16T01:58:03+00:00
What is the definition of an accredited investor?
An Accredited Investor, in the context of a natural person, includes anyone who:
- earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year,
OR
- has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). This excerpt definition is taken from the SEC.gov site.
What is the definition of a sophisticated investor?
A Sophisticated investor is considered to have sufficient financial knowledge to understand the benefits as well as the risks of an investment opportunity.