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So there was the exam. Topic: your credit. You studied even harder than you did for you prostate, pap smear and eye exams. And voila, you got an A. A-Credit is the best credit grade you can get. Help yourself to a Platinum AmEx and spend your way to happiness.

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Finance: What is an Accredited Investor?9 Views

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Finance a la Shmoop. What is an accredited investor. Well the difference

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between an accredited college and an unaccredited college, can be like you

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know the difference between Princeton, and the school of Feel Good Energy, that

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your great Aunt Bertha, set up in her garage last year. Yeah different kind of [woman dancing in garage with disco ball]

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college. Well accredited investors work on a

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similar idea. A bunch of someone's have come along and agreed that accredited

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investors, have a bunch of qualifications. In other words they're legit. So

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accredited investors are simply investors, who qualify to do a certain

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investment. Usually accredited means, that they have credit, or assets, or wampum, or

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knowledge, like intellectual capital, instead of financial capital, or along with

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both. Which means that they're big boys and big girls, who are able to invest a

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large amount of money, in a risky venture. Officially they're investors who have an

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income of at least $200,000 for the past two years, three hundred thousand for [checklist for investors on chalkboard]

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joint accredited investors, like married people or partners, or have a net worth

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of at least a million bucks individually, or jointly, or our executives, partners, or

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directors of the entity issuing those securities. Meaning raising the dough

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itself. Institutional investors, such as mutual funds, hedge funds, and pension

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funds, also fit the bill. Additionally entities can be considered

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accredited, but their threshold is 5 million bucks in assets. By the way if [man talking on lawn]

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all the owners of an entity, like a law firm or something like that, are

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accredited, well then the entity is considered accredited

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as well. So yeah they're accredited investors. Not to be confused with a

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credited investor, who is really excited to have a small part in a movie. [guy in movie theater]

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