Tags: sec | invest

SEC Adopts New Net Worth Standard for Investors

Wednesday, 21 Dec 2011 05:27 PM


U.S. securities regulators adopted new rules on Wednesday designed to protect less sophisticated people from investing in private placements and other securities offerings with less regulatory oversight.

The U.S. Securities and Exchange Commission's new rule, which was required by last year's Dodd-Frank Wall Street overhaul law, would exclude the value of a person's home from net worth calculations that are used to determine who is an "accredited investor." Only accredited investors who have a net worth of $1 million or more can participate in certain private placements and offerings that are not registered and do not require certain disclosures.

The rule comes on the heels of the 2007-2009 financial crisis, where home values plummeted and many investors lost money in sophisticated, mortgage-related securities instruments.

© 2015 Thomson/Reuters. All rights reserved.

Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.

You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved