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An accredited investor is a person or entity which meets certain thresholds of individual wealth or sophistication and is therefore able to participate in private securities offerings. As defined under the Securities Act of 1933, an Accredited Investor is a person having an annual income which exceeds $200,000 (or $300,000 for joint income) for the two years prior to participation in a private offering, with the expectation that such income will continue or increase the following year. Alternately, the investor may hold at least $1,000,000 in net worth, not including their home. In December 2020, the SEC expanded the definition of an accredited investor to include an individual who holds a Series 7, Series 65, or Series 82 certification issued by the Financial Industry Regulatory Authority (FINRA).

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