1.3 Market Participants & Entities
Securities markets involve issuers raising capital, various classes of investors providing capital, and financial intermediaries facilitating transactions.
Key FINRA Exam Takeaways
- Retail Investors: Individuals purchasing securities for personal accounts.
- Institutional Investors: Banks, insurance companies, mutual funds, hedge funds, and pension funds managing pooled capital.
- Accredited Investors (Reg D): Net worth > $1M (excluding home) OR income > $200k ($300k with spouse).
- Qualified Institutional Buyers (QIBs, Rule 144A): Institutions managing at least $100M in securities.
- Broker-Dealers: Firms in the business of executing trades for clients (broker) or trading own inventory (dealer).
Interactive Knowledge Checkpoint • Section 1.3
Under SEC Rule 144A, what is the minimum dollar value of securities an institutional investor must manage to qualify as a Qualified Institutional Buyer (QIB)?