Accredited Investor -- An affluent investor who is not considered (under Securities and Exchange Commission Regulation D) to be one of at most 35 people permitted to place money in a Private Limited Partnership. To count as an accredited investor, an individual must possess a net worth that does not go below $1 million or a yearly income of no less than $200,000. The individual must invest at least $150,000 and this must constitute no more than 20% of net worth. Accredited investors are of service to private limited partnerships, which need them to obtain a greater amount of capital than could be got from the payments of 35 less-rich persons.
About the author
Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.