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Definition of Accredited Investor

An accredited investor is an individual or entity that is permitted to trade securities that haven't been registered with securities regulatory bodies, like the SEC. An accredited investor is one who is deemed to be sufficiently financially sophisticated so as to not need the protection offered by regulatory disclosures that come with registered securities. Accredited investors typically include high-net-worth individuals, banks, insurance companies, brokers, and trusts.

In the US, the definition of accredited investor is set forth in Rule 501 of Regulation D

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