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Accredited investor

An individual or business entity that meets certain income or asset requirements, or now, passes a financial knowledge exam, making them eligible to invest in private offerings that are not registered with the SEC because they are considered financially sophisticated enough to understand the risks.

Securities and Exchange Commission (SEC)

A U.S. government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets, and facilitating capital formation. The SEC oversees various financial regulations and policies.

Regulation D

A set of rules issued by the SEC that allows certain private offerings of securities to be exempt from the registration requirements of the Securities Act of 1933. These offerings are typically made to accredited investors.

Securities

Financial instruments that represent an ownership position in a public or private corporation (like stocks), a creditor relationship with a governmental body or a corporation (like bonds), or rights to ownership as represented by an option.

Corporate governance

The system of rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community.

Private funds