Which of the following characteristics applies to an accredited investor?

An accredited investor is defined under Regulation D of the Securities Act of 1933 and is recognized primarily for meeting specific financial criteria. One of the key characteristics of an accredited investor is that they may have a net worth exceeding a specified limit, which is set at $1 million or more, excluding the value of their primary residence, or they have had an income exceeding $200,000 in the last two years (or $300,000 combined income with a spouse). This definition is important because accredited investors are deemed to have a greater capacity to bear the risks associated with certain types of investments that are not registered with the SEC, meaning they are able to invest in private placements and other higher-risk opportunities due to their financial sophistication and means.

The other characteristics outlined in the options do not accurately describe accredited investors as a group. Not all accredited investors are banks or financial institutions, and not all shareholders in a company qualify as accredited investors. Additionally, while accredited investors can include regulated entities, not all are required to be regulated by the SEC; the requirement mainly pertains to the type of investment or offering being made, rather than the investors themselves. This clarification helps to delineate the parameters that define an accredited investor and their eligibility for various financial opportunities.