Sec accredited investor for hedge funds PowerPoint Presentation

Sec accredited investor for hedge funds - PowerPoint Presentation Example According to this regulation, accredited investors are those individuals or group of investors who possess financial might and autonomy. These investors are legalized to invest in a higher risk investment such as hedge funds, limited partnerships, seed money, and private placements networks. It also refers generally to wealthy individuals and organizations such as insurance firms, banks, big charities, and some corporations who are allowed to invest in securities markets. These investors require very little protection offered by particular government filings. (Jaffer p. 134) As explained earlier, accredited investors are investors who are financially powerful and very rich individuals and to qualify as accredited investor, one must have at least one of the following: as an individual or together with his or her spouse must have a net worth more than $1 million. He or she must have stable financial income of more than $200,001 annually or a steady joint income of more than $300,000. One must be a director, general partner, or executive officer for the hedge fund . An employee benefit plan or a trust can qualify as accredited investors if the total asset exceeds $5 million. An American financial journalist known as Alfred W. Jones, in 1949, created the first Hedge fund. By then the funds were known to manage the investment risk due to dynamics in the financial markets. The number of hedge fund grew to over 200 by 1968. Hedge funds refer to privately managed accredited investment funds or securities markets. These are investments made in wide range of markets and large schemes and are bound by regulatory restrictions of a given country. In some countries like in U.S, the regulations restrict hedge fund involvement to certain group of accredited investors. These investments are quite flexible and often permit withdrawals or