Show notes
The 2,000 Investor Limit is a stipulation required by the Securities & Exchange Commission that mandates a company that exceeds 2,000 individual investors. With more than $10 million in combined assets, it must file its financials with the commission.1 According to SEC rules, a company that meets these criteria has 120 days to file following its fiscal year's end.
The 2,000 investor limit or rule is a key threshold for private businesses that do not wish to disclose financial information for public consumption. Congress raised the limit from 500 individual investors in 2016 as part of the Jumpstart Our Business Startups Act and Title LXXXV of the Fixing America’s Surface Transportation Act.
The revised rules also specify a limit of 500 persons who have not accredited investors before public filing is required.2
The prior threshold had been 500 holders of record without regard to accredited investor status. Congress began debating an increase in the limit in the wake of the 2008 recession and an explosion in online businesses.
Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.
The 2,000 investor limit or rule is a key threshold for private businesses that do not wish to disclose financial information for public consumption. Congress raised the limit from 500 individual investors in 2016 as part of the Jumpstart Our Business Startups Act and Title LXXXV of the Fixing America’s Surface Transportation Act.
The revised rules also specify a limit of 500 persons who have not accredited investors before public filing is required.2
The prior threshold had been 500 holders of record without regard to accredited investor status. Congress began debating an increase in the limit in the wake of the 2008 recession and an explosion in online businesses.
Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.