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From the bill- (B) the aggregate amount sold to any investor by an issuer, including any amount sold in reliance on the exemption provided under this paragraph
by waterlesscloud 15y ago
From the bill-
(B) the aggregate amount sold to any investor by an issuer, including any amount sold in reliance on the exemption provided under this paragraph during the 12-month period preceding the date of such transaction, does not exceed--
`(i) the greater of $2,000 or 5 percent of the annual income or net worth of such investor, as applicable, if either the annual income or the net worth of the investor is less than $100,000; and
(ii) 10 percent of the annual income or net worth of such investor, as applicable, not to exceed a maximum aggregate amount sold of $100,000, if either the annual income or net worth of the investor is equal to or more than $100,000;
EDIT- Wait, what if say your income is $150k but your net worth is only $80k? Section one says it applies if either net worth or income is less than $100k, but section two says it applies if either is greater than $100k. Hmmm.
- JumpCrisscross 15y agoSo Grandma with $50k could invest in 25 start-ups at $2k each? I suppose if they each have at least a 8% probability of more than 10-bagging it...
- mbreese 15y agoNo, she could invest $100 in 25 startups or $2500 total (5% of $50K). The limit was on total investment.
- mbreese 15y agoThere are lots of people who don't have income, but have lots of net worth - they aren't worried about the reverse case. If your net worth is more than $100K, or make $100K, then you are in (ii). You are still allowed only 10% though to invest (in total). So, if you have a net worth of $1M, you'd be capped at $100K invested per year.