An accredited investor is defined as a person who does not understand the risks involved in securities investment and will suffer considerable financial damage if the investment fails.

Question

Quizplus · Accepted Answer

This statement is incorrect. An accredited investor is actually defined as a person or entity who meets certain requirements, such as having a certain level of income or net worth, and is allowed to participate in certain types of private offerings that are considered high-risk and not available to the general public. These investors are considered to have a higher level of financial sophistication and understanding of investment risks.

An Accredited Investor Is Defined as a Person Who Does