An accredited investor is a term used by the U.S. Securities and Exchange Commission
(SEC) under Rule 501 of Regulation D. An investor must fulfill at least one of the following to become accredited:
Earn an individual income of more than $200,000 per year, or have a joint spousal income of more than $300,000 per year, in each of the last two years and expect to reasonably maintain the same level of income.
Have a net worth exceeding $1 million, either individually or jointly with his or her spouse.
Be a bank, insurance company registered investment company, business development company, or small business investment company.
Be a general partner, executive officer, director, or a related combination thereof for the issuer of a security being offered.
Be a business in which all the equity owners are accredited investors.
Be an employee benefit plan, trust, charitable organization, partnership, or company with total assets over $5 million.