Which of the following would qualify as accredited investors for a Regulation D offering?
I. your 45-year-old, spinster aunt who has earned in excess of $200,000 annually over the last ten years as a pediatric surgeon
II. your Uncle Miserly, who is reputed to have a net worth of $1.2 million
III. Tiny Brokers, a small broker-dealer with a single office in the state of Kentucky
IV. a trust containing assets that are valued between $3.5 and $4 million
Explanation
Answer: C - Only Selections I, II, and III describe accredited investors for a Regulation D offering. Individuals with income in excess of $200,000 for the past two years whose income is expected to remain at that level, such as your spinster aunt; investors whose individual net worth exceeds $1 million, such as your Uncle Miserly; and broker-dealers, such as Tiny Brokers all meet the Regulation D qualifications. A trust must have assets in excess of $5 million to qualify.
