Question

Accredited investors must meet which of the following requirements?

Have a net worth (not including their primary home) of at least $1 million

Have a net worth of at least $200,000 as a household (not including their primary home)

Earn $1 million per year individually before taxes

Pass the investor accreditation test with a 75% or better score

Answer 1

Accredited investors must meet certain requirements set by the Securities and Exchange Commission (SEC) including having a net worth of at least $1 million, a net worth of at least $200,000 as a household, earning $1 million per year individually before taxes, and passing the investor accreditation test with a 75% or better score.

Step-by-step explanation:

Accredited investors must meet the following requirements:

• Have a net worth (not including their primary home) of at least $1 million
• Have a net worth of at least $200,000 as a household (not including their primary home)
• Earn $1 million per year individually before taxes
• Pass the investor accreditation test with a 75% or better score

These requirements are set by the Securities and Exchange Commission (SEC) to ensure that only financially sophisticated individuals can participate in certain types of investment opportunities. Meeting these criteria demonstrates that an individual has a certain level of financial resources and knowledge to understand and potentially mitigate the risks involved in such investments.

Answer 2

An accredited investor must have a net worth of at least $1 million, excluding their primary residence, or earn $200,000 annually if single or $300,000 for a household. There is no formal investor accreditation test.

Step-by-step explanation:

To be considered an accredited investor, an individual must meet certain financial criteria established by the U.S. Securities and Exchange Commission (SEC). An accredited investor must either have a net worth of at least $1 million, excluding the value of their primary residence, or have an annual income of $200,000 or more if single, or $300,000 or more for a household, for at least the last two years with the expectation of earning the same or higher income in the current year. There is no investor accreditation test mandated by the SEC; such a concept is a fallacy.

Accumulating wealth through saving is feasible for many, but, despite one's ability to save $45,000 or even hundreds of thousands of dollars over time, this does not necessarily place one in the category of an accredited investor as defined by the financial thresholds mentioned above.