The SEC defines a sophisticated investor who meets certain qualifications in connection with private placements as an:
Answer: (b), accredited investor
"Accredited investor" is a term defined under SEC Regulation D to refer to investors who are deemed to be financially sophisticated and needing less protection from the registration requirement of the U.S. federal securities laws. Accredited investors include individuals whose net worth, or joint net worth with a spouse, exceeds $1,000,000; or whose individual income exceeded $200,000 or whose joint income with a spouse exceeded $300,000 in each of the 2 most recent years and can be expected to meet that income in the current year.
