What are the Requirements to be Considered an Accredited Investor? 

An accredited investor is a person or entity that meets certain financial criteria set by the Securities and Exchange Commission (SEC) as being financially sophisticated and capable of understanding the risks and potential rewards of complex financial investments. These criteria include having a net worth of at least $1 million (excluding the value of their primary residence), or having an annual income of at least $200,000 for individual investors or $300,000 for joint investors.

A non accredited sophisticated investor, on the other hand, is a person or entity that does not meet the financial criteria of an accredited investor, but is still considered financially sophisticated and capable of understanding the risks and potential rewards of complex financial investments. This may include individuals who have a high level of financial knowledge and experience, or who have received professional financial training or education. Non accredited sophisticated investors may also be required to meet certain financial thresholds or pass a financial competency exam before being allowed to invest in certain types of financial instruments.

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