To be fair, those "investor knowledge" checks are self-reported knowledge.

Some brokerages are more strict, but plenty just let you check boxes.

svachalek 6 hours ago | parent | next [-]

"In the United States, to be considered an accredited investor, a natural person must have a net worth of at least $1,000,000, excluding the value of one's primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year, or must otherwise be a holder of a specific license in good standing."

Of course you can still lie but legally there is a line.

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lokar 6 hours ago | parent | prev [-]

The accredited investor standard is higher then a basic test.

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toast0 5 hours ago | parent | next [-]

The standard may be higher, but the implementation is "This is what it means to be accredited: are you accredited? By the way if you say no, I can't sell you the thing I've been trying to convince you to buy."

If you had to take and pass a test, that might filter out more people; although I'm sure the seller would help you pass the test, so maybe not.

	▲	lokar 3 hours ago \| parent [-]
		Is there really no enforcement? That seems, uh, bad?

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triceratops 5 hours ago | parent | prev | next [-]

GP didn't say test. They said "self-reported knowledge [about yourself]". Which is correct.

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doctorpangloss 4 hours ago | parent | prev [-]

the accredited investor standard is, a checkbox

its purpose is simple. if you lose the money of sufficiently powerful people, as a middleman, the standard exposes you one more kind of legal jeopardy.