What is the difference between an accredited investor and a qualified purchaser?

An accredited investor is an individual or entity that meets certain income or net worth requirements set by the Securities and Exchange Commission (SEC) to participate in certain investment opportunities. A qualified purchaser, on the other hand, is an individual or entity that meets higher financial thresholds set by the Investment Company Act of 1940 to invest in certain types of private investment funds. In summary, the main difference is in the specific criteria and regulations that define each type of investor.