Sec
To qualify as a Qualified Institutional Buyer (QIB) under Rule 144A, an institution must generally own and invest at least:
QIB threshold = $100 million in securities owned and invested.
Complete Analysis & Legal Rationale
A Qualified Institutional Buyer (QIB) must own and invest on a discretionary basis at least $100 million in securities of unaffiliated issuers. This threshold ensures only sophisticated institutional investors participate in Rule 144A transactions.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
$5 million is the threshold for accredited investors (net worth), not QIBs.
$25 million is not the correct threshold for QIB status.
Matches the verified teaching point in the explanation.
$500 million exceeds the required threshold; $100 million is sufficient.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.