Accredited Investor

Companies who wish to sell their shares, but not register with the Securities and Exchange Commission (SEC) can do so by selling on to Accredited Investors.

Such investors are defined by Rule 501 of Regulation D to include institutional investors, such as pension funds and corporations. For an individual person to be considered as such, they must:

1. Have a net worth (together with their spouse, if applicable) of $1 million.

2. Have an income exceeding $200,000 in the two most recent years or joint income with their spouse of $300,000 in the same period.