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Dario_o

You can now invest in Ripple company!

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i'm betting it's waaaaaaaaaaaaaa (aaaaaa) ...aaaaay higher than that now on the secondary market

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You must meet one of these in order to invest BTW

I am accredited because:

You made $200,000 or more in each of the last two years and expect to make at least $200,000 this year

Your household income was $300,000 or more in each of the last two years and it is expected to be at least $300,000 this year

You have a net worth either on your own or jointly with your spouse of $1,000,000 or more excluding your home

Edited by skywalker

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1 minute ago, skywalker said:

 

You must meet one of these in order to invest BTW

I am accredited because:

You made $200,000 or more in each of the last two years and expect to make at least $200,000 this year

Your household income was $300,000 or more in each of the last two years and it is expected to be at least $300,000 this year

You have a net worth either on your own or jointly with your spouse of $1,000,000 or more excluding your home

As of 2016 there's a new qualification for those with industry experience as well.

https://www.investopedia.com/terms/a/accreditedinvestor.asp

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16 minutes ago, ReformedEquityTrader said:

As of 2016 there's a new qualification for those with industry experience as well.

https://www.investopedia.com/terms/a/accreditedinvestor.asp

I've not understood the thinking behind 'accredited investor'.  It seems irrational to me.

It's as though "worth" is tied to "smarts".  In fact in my opinion they are orthogonal, with many rich people being dumb and many poor being smart.

I get the impression it is to 'protect' people from making bad investments so only those with the smarts to understand what they are doing can be at risk.

Have I got it all wrong?

In fact it seems to me more like a 'must wear a tie' rule to keep out the riff raff.

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1 minute ago, Tinyaccount said:

I've not understood the thinking behind 'accredited investor'.  It seems irrational to me.

It's as though "worth" is tied to "smarts".  In fact in my opinion they are orthogonal, with many rich people being dumb and many poor being smart.

I get the impression it is to 'protect' people from making bad investments so only those with the smarts to understand what they are doing can be at risk.

Have I got it all wrong?

In fact it seems to me more like a 'must wear a tie' rule to keep out the riff raff.

 

I agree the rules (Regulation D) needs a full overhaul.

It dates back to the rules established after the Great Depression.  They have never been updated aside from that minor 2016 adjustment.  Back then, lack of information meant that anyone could sell promises and people lost everything when those promises weren't upheld.  Accreditation was created as a way to keep the public from hurting themselves.  It wasn't that the wealthy knew more, although, back then, they often did.  It was that the wealthy could afford to get swindled in a private stock offering and would not need to go on welfare if they did. 

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Guest

Must be nice to get in early at cheap prices before the "normies" are able to buy only a few shares once the price is too high and trading is available for everyone lol

Nice way to make sure the middle class stays middle class. Among other things.. imo

Edited by Guest

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9 minutes ago, Jumanji said:

I just purchased some Ripple shares on the secondary market though equityzen.  They had the minimum investment at $20,000.  The valuation that they gave for Ripple, the company, was around 5 billion.  

also having to be "accredited"?

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2 minutes ago, BradGsBeard said:

also having to be "accredited"?

Yes, just like @skywalker described.  The whole accreditation thing is kind of ridiculous, but I guess it is the government's way of protecting us from ourselves.  Although, they are okay with us buying lotto tickets, scratch tickets and gambling at casinos.  Here is how the SEC defines an accredited investor: 

 

An accredited investor, in the context of a natural person, includes anyone who:

earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR

has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

On the income test, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person,  or

any entity in which all of the equity owners are accredited investors.

In this context, a sophisticated person  means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

 

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