Accredited investor
- from Rule 501 of the federal Securities Act of 1933
- institutional investors: banks, insurance companies, investment companies, large employee benefit plans, charitable organizations, corporations, partnerships (total assets > $5 million)
- Not counted under Regulation D
- 1. be a director, executive officer or general partner of company who issues securities
- 2. have an individual net worth or joint net worth w/ your spouse >$1 million without worth of primary house
- 3. individual income of $200,000 in 2 of recent years, joint income w/ spouse >$300,000 and expect the same moving forward
Registrant
- broker dealers, investment advisers, investment adviser representatives that have registered w/ the Administrator
Institution
- $1,000,000 of assets
- banks
- trust companies
- savings and loan associations
- insurance companies
- employee benefit plans
- get less protection under Act because they are more sophisticated
Retail client
- non-institutional client
- need more protection than institution clients
- accredited investors can be retail clients
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