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Pre-IPO sales are limited to "accredited investors," people with a demonstrated net worth of $1 million or a yearly income of $200,000. It's been that way since
by gt565k 6y ago
Pre-IPO sales are limited to "accredited investors," people with a demonstrated net worth of $1 million or a yearly income of $200,000. It's been that way since 1982, when Rule 501 of Regulation D of the Securities Act went into effect.
https://www.wired.com/2010/07/st-essay-pre-ipo/#:~:text=Pre%2DIPO%20sales%20are%20limited,Securities%20Act%20went%20into%20effect https://www.wired.com/2010/07/st-essay-pre-ipo/#:~:text=Pre%....
In other words, the rich get richer ;)
- tinyhouse 6y agoVery interesting. Thanks for the info. How can someone apply to become an accredited investor? assuming one qualifies.
- toomuchtodo 6y agoHave sufficient assets in account at brokerage (and/or necessary income), call your rep at your brokerage.
- PenguinCoder 6y agoHurray for continued class warfare.
- toomuchtodo 6y agoWhile I agree, you overestimate the financial acumen of your average citizen to properly price securities. Regardless, something like a Dutch auction might be helpful to even the playing field.
- quickthrower2 6y agoThe assumption being that pre IPO is a great deal compared to say just investing in some other hand picked stock.
- p1esk 6y ago200k/year is not exactly "rich", at least not in bay area.
- tudelo 6y agoIf you can sustain that income for 10 years (and lets assume, some moderate growth in income, but even at a static 200k) there is a good chance that you don't have to work another day in your life that you don't want to. To me, that is pretty rich.
- p1esk 6y agoThat's an illusion. I make that much and with two kids I can barely save a a couple of grand a month. Childcare: ~3k, rent: ~3k, food: ~2k.
- scott31 6y agoyou can save 1k more if you stop eating like an american
- matthewmacleod 6y agoI honestly can’t tell if this is a troll or not. “I’m not rich! I can barely save a couple of grand a month!” Amazing.
- drewbug 6y agoIt's now possible to become an accredited investor by passing an exam. > We are expanding the definition of accredited investor to include an alternative to the wealth test https://www.sec.gov/news/public-statement/clayton-accredited-investor-2020-08-26 https://www.sec.gov/news/public-statement/clayton-accredited...