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Having more money doesn't make you less susceptible to fraud, but does make you less susceptible to ruin from big losses.
by SomewhatLikely 7y ago
Having more money doesn't make you less susceptible to fraud, but does make you less susceptible to ruin from big losses.
- mbesto 7y agoSource for that? I think the general idea is not whether someone is susceptible to fraud, but rather higher likelihood that you have experience with making investments. How much you wanna bet a white collar worker making $200k/year has made more investment-based decisions in their life than a a blue collar worker making $20/hr? I don't necessarily agree with the tenants of the idea of an accredited investor, but it's definitely a way to parse out a large chunk of the population unexperienced with investing.
- JumpCrisscross 7y ago> Having more money doesn't make you less susceptible to fraud Yes it does. If you’re investing $25k in a company, you can’t pay lawyers more than a pittance to review documents and do diligence. That makes you more susceptible to fraud.