Accredited Investor Definition
Chapters in this video
- 0:00 What an accredited investor is and why status matters
- 1:05 Natural person income and net worth thresholds
- 2:45 Primary residence exclusion and mortgage liability traps
- 3:59 Licenses and insider status as automatic qualification
- 5:08 Entity rules and the shell company prohibition
- 6:34 Verification standards, self-certification, and reasonable steps
- 7:58 Rapid-fire exam recap
What this video covers
- The income test thresholds, the two-year lookback requirement, and why the reasonable expectation of current year income matters
- The net worth test, the primary residence exclusion, and the two mortgage-related liability traps
- The Series 7, Series 65, and Series 82 professional license FastPass, including the good standing requirement
- Insider status for directors, executive officers, and general partners of the issuer
- Entity qualification rules including the $5 million asset threshold and the prohibition on shell companies formed to acquire the securities
- The distinction between traditional private placement and verified accredited investor exemptions regarding general solicitation
- What reasonable steps means for verification, including tax returns, bank statements, credit reports, and the third-party letter option
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 66 course also includes adaptive practice questions and spaced-repetition flashcards.