Nolo's Plain-English Law Dictionary

Accredited Investor

A high-net-worth investor who is permitted to invest in certain types of higher risk investments without the securities being registered with the U.S. Securities and Exchange Commission (SEC). Under federal securities law, a company that offers or sells its securities must register the securities with the SEC or find an exemption from the registration requirements. Selling to accredited investors is one such exemption. The term generally includes wealthy individuals and organizations such as corporations, endowments, or retirement plans.