Talk:Accredited investor

From Wikipedia, the free encyclopedia
Jump to: navigation, search

How are accreditation requirements justified?[edit]

I didn't see any mention in the article of why certain high-yield, high-risk investments are restricted to extremely wealthy organizations/individuals. Also, why has the SEC decided to restrict the number of people eligible to invest in these types of things even further? I think this kind of info would make the article more useful. 24.242.236.116 01:43, 25 May 2007 (UTC)

That is true. In general, this article needs work. Feel free to pitch in.--Samiharris 22:18, 31 May 2007 (UTC)

Its a classic, "if you have to ask you can't afford it." accreditation is for high risk investments, or high risk if it takes too large a portion of your investment pie. If you concentrate the kind of money that a private placement requires in one investment it would be by definition very high risk. Being such a large portion of an investors portfolio would make it very inappropriate for lower net worth individuals. No one investment should wipe out a majority of a persons portfolio if it loses all of its value. As a result you have accreditation. —Preceding unsigned comment added by 67.171.161.110 (talk) 19:54, 7 September 2007 (UTC)

No, none of these articles are to protect people who can't afford, they are simply made to restrict participation in derivatives markets to the wealthy because fungibility is limited. As many instruments nowadays threaten to limit fungibility furthermore, they have to extend restrition so the extremely wealthy/investing institution stay able to invest in this business. Protection is a good marketing argument, but has nothing to do with it - everyone was gladly invited to invest 100% of their portfolio into enron, weren't they? Regards, Wolfgang 195.3.113.165 07:57, 30 October 2007 (UTC)

Not that the rule isn't a little weird but it appears to only apply to the first five million in securities according to rule 501 from the SEC's website. I'm not an expert so I'd like further comment but the article should reflect this. Nickjost (talk) 20:23, 16 January 2008 (UTC)

Question about the $200K/$1M Rule[edit]

The articel says this rule was put into effect after the SEC act of 1933, but is this amount adjusted for inflation also? I am thinking it is, but just wanted to make sure. --Preceding unsigned comment added by 167.219.88.140 (talk) 16:19, 28 September 2007 (UTC)

-- the amount is not adjusted for inflation and the amounts were set in 1982. It is likely based on the Dodd-Frank legislation passed recently that the SEC will propose new rules that will index these amounts for inflation but they have not done so yet


---The Current SEC proposal (as of January 2011) does not include any discussion of tying net worth to inflation. However it does include a new provision of excluding principle residence in determining a total net worth of one million USD. This is however only a proposal at the moment and may change.

Sources for Canada[edit]

In Canada, the status of accredited investor is clearly defined in National Instrument 45-106 (NI 45-106) in Part 1.1 (j) to 1.1 (l), issued september 9, 2005. That might be a good source to add to the site for the quote on Canada, since i have no clue on how to do it.

At the same time i would like to talk about the status of eligible investor, there's no page on it, here are some sources.

US:
"Minimum net worth requirements must be met by investors (in California) to be eligible to invest in Mortgage Funds operating subject to a Permit. These restrictions are intended to limit Mortgage Fund investment to more experienced investors. Additional restrictions limit the maximum percentage of an individual’s self-directed IRA that can be invested.

Eligibility: Net worth requirements (California) Either: • Annual gross income of $65,000 plus net worth of $250,000 (exclusive of home, furnishings and automobiles) or • Net worth of $500,000 (exclusive of home, furnishings and automobiles).

Mortgage funds operating pursuant to a Plan (described below) limit investor eligibility to California residents or to International residents. Residents of other states may not participate." http://en.wikipedia.org/wiki/Private_money_investing

Canada:
National Instrument 45-106 (NI 45-106) part 1.1 also but in Eligible Investor, sections(a)(i) to (a)(iii)

hope someone reads this and edits the page.

209.148.151.122 (talk) 05:30, 16 February 2008 (UTC)

External links modified[edit]

Hello fellow Wikipedians,

I have just modified one external link on Accredited investor. Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information. I made the following changes:

When you have finished reviewing my changes, please set the checked parameter below to true or failed to let others know (documentation at {{Sourcecheck}}).

You may set the |checked=, on this template, to true or failed to let other editors know you reviewed the change. If you find any errors, please use the tools below to fix them or call an editor by setting |needhelp= to your help request.

  • If you have discovered URLs which were erroneously considered dead by the bot, you can report them with this tool.
  • If you found an error with any archives or the URLs themselves, you can fix them with this tool.

If you are unable to use these tools, you may set |needhelp=<your help request> on this template to request help from an experienced user. Please include details about your problem, to help other editors.

Cheers.—InternetArchiveBot (Report bug) 08:11, 3 October 2016 (UTC)

External links modified[edit]

Hello fellow Wikipedians,

I have just modified 3 external links on Accredited investor. Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information. I made the following changes:

When you have finished reviewing my changes, you may follow the instructions on the template below to fix any issues with the URLs.

You may set the |checked=, on this template, to true or failed to let other editors know you reviewed the change. If you find any errors, please use the tools below to fix them or call an editor by setting |needhelp= to your help request.

  • If you have discovered URLs which were erroneously considered dead by the bot, you can report them with this tool.
  • If you found an error with any archives or the URLs themselves, you can fix them with this tool.

If you are unable to use these tools, you may set |needhelp=<your help request> on this template to request help from an experienced user. Please include details about your problem, to help other editors.

Cheers.—InternetArchiveBot (Report bug) 22:36, 25 June 2017 (UTC)