Accredited investors are specifically protected by the Securities Act of 1933 from investing in unregistered securities issues.

Question

Quizplus · Accepted Answer

Accredited investors are not specifically protected by the Securities Act of 1933. In fact, they are allowed to invest in unregistered securities issued by private companies as long as certain requirements are met. However, accredited investors are considered to be sophisticated and knowledgeable investors who can bear the risks associated with such investments.

Accredited Investors Are Specifically Protected by the Securities Act of 1933