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Who Can Invest in a Private Stock Offering?

Private placements must come from what the SEC terms an “accredited investor.” Generally an accredited investors are generally wealthy individuals or organizations that meet minimum income requirements.

For example, for a single person to be classified as an accredited investor, they must have a net worth of $1 million or a yearly income of $200,000. Trusts, banks, investment and insurance companies also qualify. You can see all the requirements here.