Which of the following is NOT an accredited investor under Rule 501?
A) Any national bank
B) Any director of the issuer
C) Any corporation with total assets in excess of $1 million
D) Any natural person with a net worth in excess of $1 million

Question

Quizplus · Accepted Answer

Under Rule 501 of Regulation D, an accredited investor includes, among others, banks, directors of the issuer, and natural persons with a net worth (or joint net worth with the person’s spouse) exceeding $1 million at the time of the purchase, excluding the value of the primary residence. However, simply being a corporation with assets in excess of $1 million does not automatically qualify as an accredited investor; there are specific criteria that such entities must meet, such as being an entity in which all the equity owners are accredited investors or meeting other specific qualifications that are not solely based on total assets.

Which of the Following Is NOT an Accredited Investor Under