Potential Investors must be accredited to invest in companies listed with TradeWinds. Federal securities laws define the term accredited investor in SEC Rule 501 of Regulation D as:
- A bank, insurance company, registered investment company, business development company, or small business investment company
- An employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered invest ment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
- A charitable organization, corporation, or partnership with assets exceeding $5 million;
- A director, executive officer, or general partner of the company selling the securities;
- A business in which all the equity owners are accredited investors;
- A natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of purchase, excluding the value of the primary residence of such person;
- A natural person who income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year, or
- A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
We utilize an objective and independent third party that determines the Accredited.
Feel free to contact us if you have any questions.