Non-Accredited Investor

What Does Non-Accredited Investor Mean?

An investor who does not meet the net worth requirements for an accredited investor under the Securities & Exchange Commission's Regulation D. A non-accredited individual investor is one who has a net worth of less than $1 million (including spouse) and who earned less than $200,000 annually ($300,000 with spouse) in the last two years.

Investopedia explains Non-Accredited Investor
When a company raises private equity for an investment, such as a new company or a hedge fund, it is able to receive unlimited investments from accredited investors. On the other hand, Regulation D stipulates only 35 non-accredited investors are allowed to invest money into a private placement.

Related Terms

Accredited Investor
Equity
Hedge Fund
Net Worth
Private Equity
Private Placement
Regulation D
Securities & Exchange Commission - SEC
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