A term used by the Securities and Exchange Commission (SEC) under Regulation D to refer to investors who are financially sophisticated and have a reduced need for the protection provided by certain government filings. Also known as "qualified purchaser".

In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following:

1. earn an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income.
2. have a net worth exceeding $1 million, either individually or jointly with his or her spouse.
3. be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.

These investors are considered to be fully functional without all the restrictions of the SEC.

A type of investor who is deemed to have sufficient experience with, and knowledge of, investments and the financial markets in the sense that they can determine on their own the risks and merits of an investment opportunity.

For certain purposes, net worth and income restrictions must be met before one can be classified a sophisticated investor. The distinction makes an investor eligible to own certain investment opportunities, such as pre-IPO securities, that are considered "non-disclosure" or "non-prospectus" issues. Typically, one must have either a net worth of $2.5 million or have earned over $250,000 in the previous two years to qualify.