What term is used to describe an organization or individual investor who qualifies to invest in unregistered securities?

The correct term for an organization or individual investor who qualifies to invest in unregistered securities is "Accredited Investor." This designation is based on specific financial criteria set by regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States. An accredited investor typically has a net worth exceeding $1 million (excluding their primary residence) or an annual income over $200,000 (or $300,000 with a spouse) for the last two years, indicating a certain level of financial sophistication and capability to bear the risks associated with such investments.

By meeting these criteria, accredited investors gain access to private placement offerings and other alternative investments that are not available to the general public, thus facilitating the capital-raising efforts of companies seeking funding. This term is essential for understanding the landscape of securities investments, particularly in areas where investor protection regulations allow for fewer restrictions for those believed to be financially sophisticated.

In contrast, the other options refer to different types of investors but do not specifically denote those who qualify for investing in unregistered securities based on regulatory definitions. For instance, a qualified investor may imply a broader spectrum of financially capable investors that could include accredited investors but does not rely solely on the established financial thresholds defined for the accredited category. Institutional