Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Law
Redefining Accredited Investor: That's One Small Step For The Sec, One Giant Leap For Our Economy, Jeff Thomas
Redefining Accredited Investor: That's One Small Step For The Sec, One Giant Leap For Our Economy, Jeff Thomas
Michigan Business & Entrepreneurial Law Review
It may sound trivial, yet how we define accredited investor (AI) is critical. Among other things, U.S. securities laws and regulations make it easier for AIs to invest in privately held companies through “exempt offerings,” which are offerings not “registered” under the 1933 Securities Act. This results in AIs having investment opportunities that are unavailable to non-accredited investors (non-AIs). Moreover, the amount raised in exempt offerings has been increasing both absolutely and relative to the amount raised in registered offerings. In fact, the Director of the SEC’s Division of Corporate Finance recently indicated that “[c]ompanies raised $2.9 trillion in private …