By: Martin M. Shenkman, CPA, MBA, JD
An accredited investor is an investor who meets certain standards set by the securities laws to invest. If the only people investing in a particular investment are accredited investors a lower standard of reporting may be required of those organizing the investment. The standards to qualify as an accredited investor seek to identify investors with sufficient net worth and financial sophistication. For example, an individual who alone or with his or her spouse has a net worth in excess of $1 million is an accredited investor.
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