What is an accredited investor?

in the United States is an accredited investor of an individual or a financial business entity who recognizes the Securities Commission as the fulfillment of the criterion necessary to carry out investment transactions on a large scale. The SEC has determined a specific qualification that must be met before granting the status of an accredited investor. Here is more about what it means to become an accredited investor in the United States. In order for an individual to achieve the status of an accredited investor, at the time of purchase, more than a million dollars of the United States (USD) must have net assets at the time of investment. An alternative is the ability to prove that at least over the last two years, an individual annual income has exceeded $ 200,000.00 per year.

In the event that a legally recognized ZED, which shares the same household wishes to be recognized as an accredited investor, the common net assets of the couple must also exceed a minimum of $ 1,000,000,000.00 or have a common annual income of over $ 300,000.00. There are limitation of the amount of investmentICE, with more than twenty percent of net assets of an individual or pair involved in a transaction.

Banks, credit companies and other types of financial institutions can also be recognized as an accredited investor. As with individuals, there are limited offers that business entities must follow in terms of transactions. SEC also outlines these requirements for financial institutions. As well as individual certification and recognition of an individual accredited investor, financial institutions are obliged to meet a certain level of annual income, liquid assets and must participate in the investment of Opportunity that do not exceed a certain percentage of net assets of the institution. The aim is to ensure the overall financial stability of the investment market and at the same time protect the interests of investors at the same time.

One way to interest the accredited investor in a possible investment company is to look for Angel Investor Networks networks. InThe vessels of angels are accredited by investors who often invest resources in business enterprises where there is a potential for achieving a tidy profit in a reasonable period of time. Many accredited investors networks focus on supporting business efforts in the sector, so it is possible to find angel investors focusing on telecommunications, production and almost every type of industry. In some cases, the conditions of investment are more liberal than it could be obtained elsewhere, and it can be exactly what the new entrepreneur needs to become a reality.