Accredited Investor
An Accredited Investor is an investor deemed to be financially sophisticated as measured under the US Securities and Exchange Commission’s (The SEC) Regulation D.
Due to their degree of financial sophistication, Accredited Investors are able to invest in more complex financial instruments and investment products in which normal investors would not be allowed to invest. This is mainly due to the fact that Accredited Investors require a reduced need for the protection that some investment products do not offer due to their unregulated nature (hedge funds for example.) Accredited Investors include banks, investment companies, trusts, and individuals having a net worth exceeding $1million USD.