accredited investor investment & finance definition

A legal term defined by federal securities law to mean an investor who is financially knowledgeable. An accredited investor is someone who has a net worth over $1 million, or who has a trust with over $5 million in total assets that is managed by a professional. Another measure of an accredited investor is someone who has had an individual annual income in excess of $200,000 for the past 2 years or $300,000 for a married couple with reasonable expectations of achieving the same income in the current year.