Answer:
The options for this question are the following:
A) Money Managers
B) Angel Investors
C) Venture Capitals
D) Accredited Investors.
The correct answer is D) Accredited Investors.
Step-by-step explanation:
To be an Accredited Investor you must meet the criteria established in Rule 501 under the Securities Act of 1933, which defines an Accredited Investor as someone who is:
"A natural person with income exceeding $ 200,000 in each of the most recent two years or joint income with a spouse exceeding $ 300,000 for those years and a reasonable expectation of the same level of income in the current year;
"A natural person who has an individual estate, or joint estate with the person's spouse, that exceeds $ 1 million at the time of the investment, excluding the value of that person's primary residence."
Contrary to popular belief, there is no real accreditation process. There is no part of the SEC or any other government agency that you must apply to. In truth, the word credited is very misleading because there is no one to credit it, but you and the company you hope to invest in. Is that how it works.
A company wishing to issue securities or their representatives will provide a questionnaire that will ask potential investors to demonstrate that they meet the required criteria. In most cases, if you say you do, they will usually take your word for it and, in essence, you will credit yourself, although in some cases the company must verify that you really qualify.