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Accredited Shareholder

Accredited Shareholder

  • Term

    Main definition

  • Accredited Shareholder

    Companies with at least $10 million in total assets and more than 500 unaccredited holders of capital stock or other securities are required to register the securities with the Securities and Exchange Commission pursuant to Section 12(g) of the Exchange Act, as amended by the JOBS Act.

    So long as the unaccredited shareholders do not number more than 500, the companies can have up to 2,000 accredited shareholders. The burden is on the companies to reasonably determine that a shareholder is accredited. The definition of accredited shareholder mirrors that for accredited investors.

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