Accredited investors are persons classified by the SEC as qualified to invest in complex or complex types of securities.
To be accredited, you must meet certain criteria, such as an average annual income of more than $200,000 or work in the financial sector.
Sellers of unregistered securities are only allowed to sell to accredited investors who are considered financially experienced enough to bear the risks.
Accredited investors are permitted to purchase and invest in unregistered securities if they meet one (or more) of the income, equity, asset size, management status or professional experience requirements.
Unregistered securities are considered inherently riskier because they do not disclose information as usual with SEC registration.