Angie · learn
Accredited investor
Someone meeting income or net-worth thresholds, which unlocks private offerings. The rule assumes wealth implies sophistication, which is a rough proxy.
Updated 2026-09-05
An accredited investor meets income or net-worth thresholds that permit access to private offerings which are not registered with the SEC, such as a hedge fund or a private placement.
The rule's logic is that wealth substitutes for the disclosure protections of a registered offering: someone with sufficient means can absorb the loss and can afford advice. It is a rough proxy for sophistication and it is regularly criticised as one, since it screens for money rather than for understanding.
See also
- Hedge fund — A private pooled fund open only to qualifying investors, with wide freedom over what it trades, high fees, and limited ability to withdraw.
- SEC — The federal securities regulator. Its disclosure regime is why public financial statements exist at all, and therefore why any of this can be computed.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
