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What is an accredited investor?
An accredited investor is a person or entity the SEC permits to invest in private offerings that aren't registered with regulators - the private placements, funds, and deals most people never get to see. The status isn't a membership you apply for; it's a definition you either meet or you don't. Most people who qualify never realize it.
The four ways to qualify
1. Income
You earned $200,000 or more individually - or $300,000 with a spouse or partner - in each of the last two years, and reasonably expect the same this year.
2. Net worth
Your net worth exceeds $1 million, alone or with a spouse or partner, not counting the equity in your primary residence.
3. Professional license
You hold a Series 7, Series 65, or Series 82 license in good standing. This route recognizes financial sophistication directly, regardless of your income or net worth.
4. Entities and trusts
An entity with more than $5 million in assets qualifies, as does any entity in which every equity owner is individually accredited.
Why verification matters under Rule 506(c)
When an issuer raises under Rule 506(c) - the exemption that lets them market a private offering publicly - the law requires them to take reasonable steps to verify that each investor is actually accredited. Self-attestation alone is not enough. In practice that means a licensed third party reviews your income or net-worth evidence and confirms your status. A confirmed verification is generally good for 90 days.
Where AccreditKings fits
AccreditKings turns that verification into a few minutes of work. You submit your evidence through an encrypted portal; licensed professionals review it through our regulated verification partner; and once confirmed, your status carries straight over to Fraction Kings so you can invest without repeating a single step.
Educational information only - not investment, legal, or tax advice. Definitions summarize SEC rules current as of 2026 and may change.