Accredited investor status — why do I need it for buying securities?
By Oleh Vasylenko
updated 2 months ago
We will answer the following questions in this article:
- Why do I need to be an accredited investor?
- How can I become an accredited investor? How do I qualify?
- What countries require accredited investor status verification to buy securities?
Why do I need to be an accredited investor to buy securities?
To answer this question, we must delve into security tokens. Securities often provide their owners with an expectation of profit. This includes dividends, a share of income, or price appreciation.
Security tokens may only be sold to accredited investors. Also, a company may only sell securities registered with the SEC. Federal securities laws have determined these rules and procedures.
How can I become an accredited investor? What do I need to do it?
You must meet your country's requirements to become an accredited investor. We will list the necessary conditions below. First, let's take a deep dive into the meaning of specific details.
Why do companies demand these requirements for token purchasers? The answer is simple:
ISO participation has many risks. Only people with sufficient knowledge and experience should enter into them. You must prove that your income for a specified period meets the requirements. This is enough to confirm your qualification.
Step by step guidelines can be found here.
What countries require accredited investor status verification to buy securities?
This list requirement list is not exhaustive. Don't see your country listed? You're always welcome to contact us at [email protected] with questions. We can help you to determine your country's requirements.