Accredited investor

Also called: accredited

In one line

A person or entity that meets income or net-worth thresholds (or holds certain credentials) and is therefore allowed to buy private, unregistered securities.

In plain English

US rules only let 'accredited' investors buy most private shares — broadly, those with high income or wealth. It's a gate on who can legally be your buyer.

If you were explaining it to a 5-year-old

Only grown-ups with a special badge are allowed into the shop that sells these toys. No badge, no entry.

Why it matters when you sell

Your pool of eligible buyers is limited to accredited investors, which is why marketplaces verify buyers and why finding one takes effort.

Put it to use

Who buys private shares?

Hold private-company shares? Our free estimator shows what your stake could be worth and whether you can sell — no sign-up. Value my equity (free) → · Back to the glossary →
When you're ready to go deeper, there's an optional Equity Toolkit and Report.

Sources

Primary references for this term: US SEC / Investor.gov. Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.

Accredited investor

Related terms

Put it to use