An investor that doesn’t have a minimum net worth of $1 million (excluding primary residence equity) either independently or jointly (with a spouse). Alternatively, it refers to an investor whose income doesn’t exceed $200,000 per year for the two most recent years, or $300,000 annually with a spouse for the two most recent years. Unaccredited investors are not free to do whatever they wish with their money and are restricted in their investment choices. More specifically, they don’t qualify to invest in unregistered securities. However, in some countries, like the United States, an unaccredited investor, who earns $25,000 for example, can invest in private equity or debt (see: JOBS Act).
December 9, 2023
