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How much can an investor regarding crowd-source funding invest each year?

Option 1: $10,000
Option 2: $50,000
Option 3: $100,000
Option 4: $200,000

1 Answer

4 votes

Final answer:

SEC regulations state that an individual can invest up to $2,200 or 5% of their annual income or net worth if less than $107,000, or 10% of their annual income or net worth up to $107,000 if both are equal to or more than $107,0000, in crowd-source funding annually.

Step-by-step explanation:

The question pertains to the amount an investor can invest each year in crowd-source funding. Neither the provided background on venture capital investments nor the information on the probabilities of returns for different investments directly answers the question about crowd-source funding limits. However, according to current regulations by the Securities and Exchange Commission (SEC), an individual investor can invest up to $2,200 or 5% of their annual income or net worth if either is less than $107,000, or 10% of their annual income or net worth (not to exceed a maximum aggregate amount of $107,000) if both their annual income and net worth are equal to or more than $107,000, over a 12-month period in crowd-source funding. Therefore, none of the provided options correctly state the annual investment limit for crowd-source funding as specified by the SEC.

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