A Guide on How to Become an Accredited Investor

A Guide on How to Become an Accredited Investor

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A Guide on How to Become an Accredited Investor There are many advantages of accredited investors over non-accredited investors. Theycan makemore money as they are allowed to make investments without registration.

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Published 12 January 2016
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Language English
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A Guide on How to Become an Accredited Investor
There are many advantages of accredited investors over non-accredited investors. They can make more money as they are allowed to make investments without registration. They are also able to invest money directly into private equity, venture capital, private placements, and equity funding. However, it not easy to become an accredited investor and it wholly depends upon the SEC- Security Exchange Commission. Almost fifty per cent of people are misled that there is a lot of process behind becoming an accredited investor. However, this status is determine d by the companies which issue unregistered securities. This article presents you all the requirements of becoming an accredited investor. But, let us first understand who an accredited investor is. An accredited investor can be defined as the person whose income exceeds $200,000 in the two most recent years or has a joint income of $300,000 with a partner for those years. Visit the below mentioned site, if you're searching for additional information concerningAccredited Investor Leads.
Those persons who have earned an income of $200,000 or more over the last two years are automatically nominated as an accredited investor. A person can also uphold a net worth of $1 million or more. To determine if an individual qualifies as an accredited investor, he or she should make a personal balance sheet by subtracting their accountabilities from the total assets. No formal agency or organisation authorises the accreditation of an investor, and they do not get any certificate for it. However, since September 2013, the SEC has made a rule that anyone who sells to accredited investors must take a set of different steps in order to get their status verified. Simply telling a firm that an individual is qualified is no more allowed. Individuals who believe that they qualify for accreditation can visit a fund and request for information about probable investments. The interested individuals will be given a questionnaire by the issuer of the securities that would determine the status of their accreditation.
The candidates are also required to attach a copy of their financial statements and other account information so as to verif y the ownership of possessions. Companies will also possibly assess a credit report in order to evaluate any debts held by an individual seeking accredited status. The best way to get in contact with an accredited investor is to use an accredited investor database. There are many companies online as well as in the market that can provide you with a list of potentialaccredited investor lead andInvestor Email Lists for industries and businesses as well. However, a good list of accredited investor leads can take years. These lists are built after many years of relationships. Luckily, most accredited inve stors are practical and are available on the internet. So, you do not have to wait for years to get an appointment. The best accredited investor lists are short. We would like to add that while finding an accredited investor, you must proceed with caution. The best advice is to play safely otherwise you will land in high debts and a bad investment. The best advisors will successfully protect their clients, but not pitch them garbage.