How to become an accredited investor? Follow

To become an accredited investor, it is not necessary for you to pass any particular examination or test. There is no requirement of an investor license as well. But to qualify and become an accredited investor one must fulfill specific requirements that are laid by the Securities and Exchange Commission (SEC).

 Not only this, an individual can even be asked to demonstrate to the investment firm that he is in a position to invest in a particular product. Specific necessities are needed to be fulfilled by the person either individually or in a conjoint manner which includes the spouse to become an accredited investor. The requirements include:

1. A person is having an individual income exceeding $200,000 in the recent two calendar years or is having  a joint income with the spouse exceeding $300,000 in each of the two years and can provide the validation that the same income level can be guaranteed in the current year  than the person can become an accredited investor.

An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. Accredited investors include natural high net worth individuals (HNWI), banks, insurance companies, brokers and trusts.