Definition - What does Accredited Investor mean?
An accredited investor is any individual that meets one or more of the following:
- A net worth exceeding $1,000,000 excluding the primary residence; or
- Is single and has an annual income of $200,000 or more, or $300,000 jointly with a spouse.
Testopedia explains Accredited Investor
Because of their higher net worth and or higher level of income accredited investors may participate in a variety investments that may not be available to smaller less sophisticated investors. A private placement may be sold to an unlimited number of accredited investors.