Sale of securities. Many state laws specifically exempt the sale of securities. Substantial seller . Many state laws exempt sellers with a net worth above a specific threshold. Sophisticated investor .
Some state laws exempt a sale to an investor with a substantial net worth.
Such investors are viewed as having the capability, on the counsel, to protect themselves from fraudulent sellers. Large investment . This is usually a material investment made by a sophisticated investor. Other sophisticated investors . Several laws exempt banks, insurance companies, broker-dealers and the like.