Which type of investor is NOT considered an accredited investor?

The distinction of who qualifies as an accredited investor is significant in the realm of securities offerings, as it typically determines who can participate in certain types of investment opportunities that are not registered with the SEC. An accredited investor is someone who meets specific financial criteria set forth by regulatory bodies, primarily the SEC.

In this case, employees of the issuer, in general, are not automatically classified as accredited investors. While they may have valuable insight and access to the company, their status does not inherently provide them with the financial backing that is required to meet the accredited investor criteria. In contrast, individuals with a net worth of $1 million, officers or directors of the issuer, and institutional investors with at least $5 million in assets all meet the established requirements to be considered accredited.

Therefore, identifying employees of the issuer as not being accredited conveys the regulatory perspective that access to unregistered securities offerings should be limited to individuals or entities who possess a certain level of financial sophistication and capacity, rather than merely their affiliation with the company.