Non-Accredited Investor

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DEFINITION of 'Non-Accredited Investor'

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
  1. Net Worth

    The amount by which assets exceed liabilities. Net worth is a ...
  2. Regulation D - Reg D

    A Securities and Exchange Commission (SEC) regulation governing ...
  3. Private Placement

    The sale of securities to a relatively small number of select ...
  4. Private Equity

    Equity capital that is not quoted on a public exchange. Private ...
  5. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  6. Accredited Investor

    A term used by the Securities and Exchange Commission (SEC) under ...
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