CFB Investment Education , Download SEC’s Bolton PDF
The SEC’s Office of Investor Education and Advocacy is issuing this Investor Bulletin to educate individual investors
about what it means to be an “accredited investor.” What does it mean to be an accredited investor?
Under the federal securities laws, a company or private fund may not offer or sell securities unless the transaction has been registered with the SEC or an exemption from registration is available. Certain securities offerings that are exempt from registration may only be offered to, or purchased by, persons who are accredited investors. One principal purpose of the accredited investor concept is to identify persons who can bear the economic risk of investing in these unregistered securities. Unlike offerings registered with the SEC in which certain information is required to be disclosed, companies and private funds, such as a hedge fund or venture capital fund, engaging in these exempt offerings do not have to make prescribed disclosures to accredited investors. These
offerings, sometimes referred to as private placements, involve unique risks and you should be aware that you
could lose your entire investment