Simple English definitions for legal terms
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A sophisticated investor is someone who knows a lot about money and investing. They are able to understand and evaluate different types of investments to make smart decisions. They don't need as much protection from the law because they have enough knowledge and experience to make informed choices.
Definition: A sophisticated investor is someone who has enough knowledge and experience in financial matters to evaluate the qualities of a security without requiring the full protection of securities laws.
Examples:
These examples illustrate the definition of a sophisticated investor because they both have the knowledge and experience necessary to evaluate the qualities of a security without requiring the full protection of securities laws. They are able to make informed decisions about their investments based on their expertise in financial matters.