Nouveau Accredited

While each day we may get to decide between basic choices we’ve always had – like what to eat for lunch or what clothes to wear – sometimes our available options materially change because our legal framework evolves. There are three distinct qualifications in the US (under the SEC) that determine who can invest in what type of investment offerings: the accredited investor, the qualified client, and the qualified purchaser. I believe the idea is to protect the average person (aka retail investor) from more “risky” offerings, like private equity, venture capital, and hedge funds. And maybe the intent is good, but – as we’ll see in exploring this issue in more detail – it’s built mainly on the premise that wealth is the same thing as investment sophistication, and that is simply not true.

Links mentioned in this episode:

• http://altblend.com
• http://thebahnsengroup.com