A publication of the Securities and Exchange Commission (SEC) notes that to invest in a hedge fund,
Question:
A publication of the Securities and Exchange Commission (SEC) notes that to invest in a hedge fund, “you generally must be an accredited investor.”
a. What is an accredited investor?
b. The publication also notes that hedge funds often use leverage and that “the use of leverage can turn an otherwise conservative investment into an extremely risky investment.” Briefly explain what this observation means.
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Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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