An accredited investor is a person or business that is authorized to buy and sell securities without being registered through the Security and Exchange Commission (SEC)
Why It's Important
An accredited investor can invest in a variety of unregistered investments such as hedge funds, venture capital, and private equity opportunities. But, of course, this status is not open to everyone. In order to gain the status of accredited investor, you have to meet two different criteria:
Now, as I said before, it doesn't have to be individuals. It could be a trust or any entity that meets the requirements.
Eventually, I want to become an accredited investor! All in due time!