An accredited investor is an individual or entity allowed to trade securities not registered with financial authorities. They must satisfy at least one requirement regarding their income, net worth, asset size, governance status, or professional experience. Accredited investors can purchase securities not registered with financial authorities like the SEC, and they have privileged access to various investments. Recent changes have expanded the definition of who can be considered an accredited investor, and the purpose of these requirements is to protect investors while promoting investments in risky ventures.
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