Accredited investor

In the United States, the SEC will allow only accredited investors to invest in certain risky, high-yield investments. This accredited investor can be an organization such as a business or retirement plan, or rich individuals. For an individual to be considered a accredited investor he must have a net worth of at least one million US dollars or have made at least $200,000 dollars each year for the last two years ($300,000 with his spouse if married) and have the expectation to make the same amount this year. This rule came into effect in 1933 by way of the Securities Act of 1933.