Non-Accredited Investor
An investor who does not meet the net worth requirements for an accredited investor under the Securities & Exchange Commission's Regulation D. A non-accredited individual investor is one who has a net worth of less than $1 million (including spouse) and who earned less than $200,000 annually ($300,000 with spouse) in the last two years.
Investopedia Commentary
When a company raises private equity for an investment, such as a new company or a hedge fund, it is able to receive unlimited investments from accredited investors. On the other hand, Regulation D stipulates only 35 non-accredited investors are allowed to invest money into a private placement.
Related Links
Policing The Securities Market: An Overview Of The SEC
Introduction To Hedge Funds - Part One
Introduction To Hedge Funds - Part Two
See also: Accredited Investor, Equity, Hedge Fund, Net Worth, Private Equity, Private Placement, Regulation D, Securities & Exchange Commission - SEC
Also spelled: nonaccredited investor, non accredited investor