An accredited investor is an individual or entity that meets certain criteria set by the U.S. Securities and Exchange Commission (SEC) and is allowed to invest in certain types of securities that are not available to the general public. To be considered an accredited investor, an individual must have a net worth of at least $1 million, excluding the value of their primary residence, or have an annual income of at least $200,000 for the past two years (or $300,000 combined income if married). Entities such as corporations, partnerships, and trusts may also qualify as accredited investors.