Under Rule 501, which of the following qualifies as an accredited investor?

• A. A bank, insurance, or registered investment company
• B. A charitable organization with assets over $5 million
• C. An individual with assets over $10 million
• D. An employee of the issuer

Answer: (A)

Rule 501 sets up automatic accredited-investor categories for certain institutions because of their size, regulatory status, and ability to absorb risk in private offerings. Banks, insurance companies, and registered investment companies fall into this automatic category, so they qualify as accredited investors without needing to meet net-worth or income tests. That makes the first option the straightforward correct example. It’s also true that charitable organizations with assets over a certain amount qualify as well, but the question’s emphasis is on the automatic-institution category, which is why this option is highlighted.