4 ms·

> In the whole of the USA, there are only 80,000 accredited investors. Incorrect. Maybe you're basing that number off the (alternative) 2 million in liquid ass

by piker 5y ago

> In the whole of the USA, there are only 80,000 accredited investors. Incorrect. Maybe you're basing that number off the (alternative) 2 million in liquid assets, but the income threshold is something like 200k/year for 2 years. A quick google shows estimates ranging from 8%[1] to 13 million[2] [1] https://www.archerinvestors.com/accredited-investors/ https://www.archerinvestors.com/accredited-investors/ [2] https://dqydj.com/accredited-investors-in-america/ https://dqydj.com/accredited-investors-in-america/

gfodor 5y ago
Is it really true only 80k citizens have 2m in liquid assets?
- perl4ever 5y ago
  I read somewhere that the financial threshold for an accredited investor has stayed the same for a very long time, without adjustment for inflation. That means that when it was originally instituted, there were much fewer and they were much richer compared to the rest of society. So if someone is quoting an unreasonably low number, they might be using a figure from long ago.
- pb7 5y ago
  Absolutely not. There are estimated ~100K people with $50M or more.[0] [0] https://www.statista.com/topics/3467/millionaires-in-the-united-states/ https://www.statista.com/topics/3467/millionaires-in-the-uni...
dataflow 5y ago
There's more to accreditation than just checking a box that you have the net worth. (And even then, not every household would have checked said box.)
- eclark 5y ago
  https://www.investopedia.com/articles/investing/092815/how-become-accredited-investor.asp https://www.investopedia.com/articles/investing/092815/how-b... > There is a common misconception that a “process” exists for an individual to become an accredited investor. No government agency or independent body reviews an investor's credentials, and no certification exam or piece of paper exists that states a person has become an accredited investor. Instead, the companies that issue unregistered securities determine a potential investor’s status by conducting diligence prior to sale. In the US as far as I know it's just fulfilling the monetary requirements (income or assets).
  - dataflow 5y ago
    This sentence > Instead, the companies that issue unregistered securities determine a potential investor’s status by conducting diligence prior to sale. means you are not accredited until you have due diligence done on you.
    - mattclarkdotnet 5y ago
      The 'due diligence' consists of getting the investor to fill in and sign a form affirming that they meet the criteria. No evidence is required. I know because I did exactly this just last year to invest in a New York based business.
      - dataflow 5y ago
        > No evidence is required. So what though? We're not arguing over how simple or onerous the due diligence process is. Whatever it is, whether it's as simple as just checking a box or as difficult as walking on the moon, it is something that needs to happen before you are "accredited". Households that don't go through that process aren't accredited, even if they're worth a trillion dollars. It's as simple as that.
        thereisnospork 5y ago
        >Households that don't go through that process aren't accredited >(a) Accredited investor. Accredited investor shall mean any person who comes within any of the following categories, <etc.> Persons that meet the definition of an 'accredited investor' per 17 CFR § 230.501 are accredited. Attestations, diligence, etc. are irrelevant to that fact as defined by law. There is nothing that needs to happen above and beyond the criteria as spelled out. Have 999,999$ net worth? not accredited. Find a dollar bill on the street? Accredited. Spend 1$ on a coffee (ha..)? No longer accredited.

by piker 5y ago

gfodor 5y ago

Is it really true only 80k citizens have 2m in liquid assets?

perl4ever 5y ago
I read somewhere that the financial threshold for an accredited investor has stayed the same for a very long time, without adjustment for inflation. That means that when it was originally instituted, there were much fewer and they were much richer compared to the rest of society. So if someone is quoting an unreasonably low number, they might be using a figure from long ago.
pb7 5y ago
Absolutely not. There are estimated ~100K people with $50M or more.[0] [0] https://www.statista.com/topics/3467/millionaires-in-the-united-states/ https://www.statista.com/topics/3467/millionaires-in-the-uni...

dataflow 5y ago

There's more to accreditation than just checking a box that you have the net worth. (And even then, not every household would have checked said box.)

eclark 5y ago
https://www.investopedia.com/articles/investing/092815/how-become-accredited-investor.asp https://www.investopedia.com/articles/investing/092815/how-b... > There is a common misconception that a “process” exists for an individual to become an accredited investor. No government agency or independent body reviews an investor's credentials, and no certification exam or piece of paper exists that states a person has become an accredited investor. Instead, the companies that issue unregistered securities determine a potential investor’s status by conducting diligence prior to sale. In the US as far as I know it's just fulfilling the monetary requirements (income or assets).
- dataflow 5y ago
  This sentence > Instead, the companies that issue unregistered securities determine a potential investor’s status by conducting diligence prior to sale. means you are not accredited until you have due diligence done on you.
  - mattclarkdotnet 5y ago
    The 'due diligence' consists of getting the investor to fill in and sign a form affirming that they meet the criteria. No evidence is required. I know because I did exactly this just last year to invest in a New York based business.
    - dataflow 5y ago
      > No evidence is required. So what though? We're not arguing over how simple or onerous the due diligence process is. Whatever it is, whether it's as simple as just checking a box or as difficult as walking on the moon, it is something that needs to happen before you are "accredited". Households that don't go through that process aren't accredited, even if they're worth a trillion dollars. It's as simple as that.
      - thereisnospork 5y ago
        >Households that don't go through that process aren't accredited >(a) Accredited investor. Accredited investor shall mean any person who comes within any of the following categories, <etc.> Persons that meet the definition of an 'accredited investor' per 17 CFR § 230.501 are accredited. Attestations, diligence, etc. are irrelevant to that fact as defined by law. There is nothing that needs to happen above and beyond the criteria as spelled out. Have 999,999$ net worth? not accredited. Find a dollar bill on the street? Accredited. Spend 1$ on a coffee (ha..)? No longer accredited.