The NetCare Company, which operates assisted-living facilities, is planning to issue or sell shares of stock...

The NetCare Company, which operates assisted-living facilities, is planning to issue or sell shares of stock to accredited investors. Briefly explain whether each of the following individuals would qualify as an “accredited investor” under the SEC’s Reg. D. [Note: Materials in Appendix B are useful in answer this exercise.]
1. Amy Smith is the chief executive officer (CEO) of NetCare Company.
2. Bruce Jones, who has a net worth of $750,000 , is planning to purchase shares of stock to be issued by NetCare Company.
3. Jean Wu also is considering purchasing shares of stock that will be issued by NetCare Company. Jean’s annual income has been $250,000 in each of the past two years, and she expects to have a comparable amount of income next year.
4. James Shastri is a software programmer for NetCare Company.
5. Julie Kukoc recently inherited some financial assets and now has a net worth of $2 million with an annual income of $35,000.

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jeff jeffy answered 1 year ago

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