Series 79 practice questioneasyRegulation D
Which of the following is an accredited investor under Regulation D?
- AA person with net assets of $500,000 and $150,000 annual income
- BA trust with $2 million in assets and a non-accredited trustee
- CAn individual with $1 million in net worth, excluding primary residence✓ Correct answer
- DA corporation with $500,000 in assets
Explanation
Why C — An individual with $1 million in net worth, excluding primary residence
Under Regulation D, an accredited investor includes an individual with net worth exceeding $1 million, excluding primary residence. The trap is not subtracting the primary residence or assuming lower thresholds or entity types automatically qualify.
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