Can a non-accredited investor participate in a private placement?

If you're a non-accredited investor looking to participate in a private placement, you may find that the answer depends on the situation. Private placement securities are those that are not registered for sale with the Securities and Exchange Commission. This means that the investment is made exclusively between parties who have been approved by the companies themselves—for example, it could be limited to a small number of accredited investors or made available only to family members and friends of the company. It's also important to note that non-accredited investors purchasing these securities are not automatically eligible to receive any sort of investment return.

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'Non-accredited' refers to anyone who does not meet an income requirement set by the SEC. For example, if you had a household income of less than $200,000 per year or if your net worth was less than $1 million (excluding your primary residence), you would be considered a non-accredited investor. If you found yourself in this category, you might still be able to participate in a private placement if you were deemed a 'sophisticated investor'. This means that the financial institution offering the securities must believe that you have enough knowledge about business and finance matters that you can make sound decisions about this type of investment.

To be safe, you should seek the guidance of a licensed attorney in your jurisdiction, if you need a free consultation, call this law firm below - they’ll help you:

Ascent Law LLC

8833 S Redwood Rd Ste C

West Jordan UT 84088

(801) 676-5506

https://g.page/AscentLaw

https://www.ascentlawfirm.com/who-can-buy-a-private-placement/

 

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