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What is an Accredited investor?

An accredited investor is a wealthy individual or business (banks, insurance companies, etc.) that has special access to complex and high-risk investments. These investments, such as investing in venture capital, hedge funds or angel investment are special because they might not be registered with financial institutions.

Who is An Accredited investor?

How do you know who is an accredited investor? These people or organizations have to fulfill certain criteria related to their net worth, professionalism, or asset size and just then can be classified as accredited investors. These rules vary by country: for example, the specified amount of annual income can be different.

Accredited investors, as opposed to what people might say, don’t have a specific process that is governed by a unified agency. Instead, whenever a company issues unregistered securities, it’s up to them to do the due diligence for the potential investor who plans to invest.

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