Finance glossary
Accredited Investor
Definition
An individual or entity allowed to invest in private securities.
An accredited investor meets income or net worth thresholds set by regulators, qualifying them to invest in private offerings like hedge funds, venture capital, and private placements. The rules assume such investors can bear the higher risk and reduced disclosure.
In a sentence
Only as an accredited investor, meeting the income threshold, could she put money into the private hedge fund.
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