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Comment by gt565k | Hacker News Reader

Pre-IPO sales are limited to "accredited investors," people with a demonstrated net worth of $1 million or a yearly income of $200,000. It's been that way since 1982, when Rule 501 of Regulation D of the Securities Act went into effect.

https://www.wired.com/2010/07/st-essay-pre-ipo/#:~:text=Pre%....

In other words, the rich get richer ;)

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It's now possible to become an accredited investor by passing an exam.

> We are expanding the definition of accredited investor to include an alternative to the wealth test

https://www.sec.gov/news/public-statement/clayton-accredited...

The assumption being that pre IPO is a great deal compared to say just investing in some other hand picked stock.

Very interesting. Thanks for the info.

How can someone apply to become an accredited investor? assuming one qualifies.

Have sufficient assets in account at brokerage (and/or necessary income), call your rep at your brokerage.

200k/year is not exactly "rich", at least not in bay area.

If you can sustain that income for 10 years (and lets assume, some moderate growth in income, but even at a static 200k) there is a good chance that you don't have to work another day in your life that you don't want to. To me, that is pretty rich.

That's an illusion. I make that much and with two kids I can barely save a a couple of grand a month. Childcare: ~3k, rent: ~3k, food: ~2k.

I honestly can’t tell if this is a troll or not. “I’m not rich! I can barely save a couple of grand a month!”

Amazing.

you can save 1k more if you stop eating like an american

Hurray for continued class warfare.

While I agree, you overestimate the financial acumen of your average citizen to properly price securities. Regardless, something like a Dutch auction might be helpful to even the playing field.

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