§ 28031 Accredited Investor Definition

• •An 'accredited investor' is someone who has a lot of money or knows a lot about investing.
• •These investors can buy special stocks or securities from certain companies.
• •The money they invest helps small businesses get the funds they need to grow.
• •The government decides who can be called an 'accredited investor'.

Your rich uncle wants to invest in a small bakery to help it grow.

If your uncle is an 'accredited investor', he can buy special stocks from the bakery. This gives the bakery money to buy better ovens or hire more bakers. The government says who can do this kind of investing.