(USA) An investor who is sufficiently knowledgeabl... Add a comment
An investor who has sufficient knowledge and experience with investing that he/she is able to evaluate the merits of an investment. A requirement of certain exempt offerings. see also accredited investor.
Any investor who is capable of assessing the risks involved with a hedge fund -- either alone, or with the help of an investment advisor -- as described in Rule 506 of Regulation D of the Securities Act of 1933.
Typically, an investor viewed by an issuer or underwriter as having sufficient resources, market knowledge and experience to understand and bear the risks involved in a particular investment. Compare: ACCREDITED INVESTOR; QUALIFIED INSTITUTIONAL BUYER; SOPHISTICATED MUNICIPAL MARKET PROFESSIONAL. See: INVESTOR LETTER.
This term refers to a special type of investor (shareholder) in a company and has relevance for the purposes of prospectus exemptions under provisions of the Corporations Act. This investor usually subscribes large amounts of funds and is considered to be fully informed from private information made available to him/her by the company at the time of making that investment. This investor must satisfy certain prescribed minimum assets and income levels to be classified as a Sophisticated Investor.
An investor with the education, business background and investment experience to be able to obtain the information needed to make reasonable investment decisions about the company in question.