I looked into “crowd funding” in the past, and I didn’t qualify as an “Accredited Investor”. Having said that (I’m not an accredited investor), can I buy $25,000 worth of stock in a company, or am I limited to the $2,000 maximum?
As far as I'm aware, accredited investors status comes into play moreso when a company is private or for illiquid investments. If a stock is publicly traded, you can buy $25,000 worth of stock.
If it’s “private” or “illiquid” would it be on the US stock exchange? It’s on the US stock exchange, and you can buy it, I just wasn’t sure what it means to be private or illiquid
Illiquid means there are a lack of buyers/sellers when it comes to a financial instrument, so if you have to sell it all of a sudden, the price may vary widely. There are stock that are publicly traded on the US stock market that are illiquid but there are no rules barring you from screwing yourself over. There are no private stock that are publicly traded. Outside of the US Stock Exchanges, regulators don't have as much visibility, but to my knowledge, one way to counteract everyday people being taken advantage of, they implement the accredited investor status.
Yeah I imagine it's just easier if you tell them it's for a good purpose, but once the loan is in your hands it's up to you.