accredited investor

An investor with sufficient income or wealth to qualify for restricted offerings and limited partnerships. Accredited investors include banks, insurance companies, registered investment companies, charitable organizations with assets over $5 million, and individuals with annual income exceeding $200,000 ($300,000 for joint returns) or a net worth exceeding $1 million. Raising funds from accredited investors allows companies an exemption from registering securities with the Securities and Exchange Commission.