The words “qualified investor” are key to understanding how these US regulations work. An accredited individual has enough financial awareness, capital, and sophistication that they should be exempt from many protections available for most investors in America – but this doesn’t mean there isn’t still risk involved with investing!
To qualify as an investor, you must have some form of financial means or knowledge that reflects your ability to take risks with investments. This includes things like income and net worth but it can also come down to the size of assets in general – something many people lack these days thanks largely due to high unemployment rates across all industries.
To be an accredited investor, you must have at least $200K in annual income or higher for the last 2+ years with same future earning potential. You are also considered such if your net worth exceeds 1 million dollars ($1M excluding permanent residence).