investing

accredited investor

A person or institution that meets specific financial thresholds set by regulators, allowing access to certain private investments.

Example

"Only accredited investors with a net worth over $1 million could participate in the private placement."

💡 Memory Tip

ACCREDITED = certified/approved. An accredited investor has the credentials (wealth) to invest in risky private deals.

Etymology

Accredited (officially recognized) + investor — an investor officially recognized as financially sophisticated.

Common Misspellings

acredited investoraccreditted investoraccredited investore

Related Terms

hedge fundprivate equityventure capital

See Also

SEC

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