Accredited Investors Clubs

Do You know that What it means by Accredited Investor? Well Here is the explanation of Accredited Investor according to the Investopedia.

In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following:
1) earn an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income.
2) have a net worth exceeding $1 million, either individually or jointly with his or her spouse.
3) be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.

In short, Accredited Investors are the high net worth Individuals who can invest in any kind of high risk of investment even without the restrictions of SEC. This is because it is assumed that, They are the highly sophisticated investors and they can take the informed sound Investment decision.

Common people who do not qualify for these criterias can’t invest in such Securities, Businesses & Investments because of its high rick nature.

In USA, there are several Accredited Investor Clubs in which Accredited Investors meet each other and discuss various exotic investment opportunities.

In other words, you can say that rich people (Accredited Investors) can invest in those high risk-high return Investments legally in which poor and middle class can’t invest. And even if they try to invest, it’s against the laws.

This means that, if you don’t get rich, you can not access those rich people’s investments which can make you more richer. If you are not the Rich person than only stocks, bonds, gold, mutual funds and real estates are the only investment vehicles for you.

You can not invest in high growth start-up businesses or any other Businesses like this.