Who Should Invest?
Member FINRA, SIPC
Red River Securities, LLC, Oil & Gas Exploration & Development, Plano, TX

What You Need to Know

Who Should Invest

Investment Benefits

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  • Red River Securities requires that all participants in our Direct Participation Programs be accredited investors. This ensures that viability of the partnership and protects partners from underfunded ventures. It also helps the individual guard against entering into investments that are beyond their financial means.

    Are You an Accredited Investor?

    Review the following criteria to ensure that you are an accredited investor, or call a Red River Securities representative to clarify any questions regarding your qualifications. Your may reach a representative by calling, 888.608.8898.

    Qualifications of an Accredited Investor

    Under the Securities Act of 1933, a company that offers or sells its securities must register the securities with the SEC or find an exemption from the registration requirements. The Act provides companies with a number of exemptions. For some of the exemptions, such as rules 505 and 506 of Regulation D, a company may sell its securities to what are known as “accredited investors”.

    The federal securities laws define the term accredited investor in Rule 501 of Regulation D as:

    1. a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
    2. a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
    3. a bank, insurance company, registered investment company, business development company, or small business investment company;
    4. an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
    5. a charitable organization, corporation, or partnership with assets exceeding $5 million;
    6. a director, executive officer, or general partner of the company selling the securities;
    7. a business in which all the equity owners are accredited investors;
    8. a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase;

    We have provided this information as a service to investors. It is neither a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law


     

    • Red River Securities, LLC is a registered broker/dealer and member of the Financial Industry Regulatory Authority (FINRA).

      Become an energy partner for the future – 888.608.8898

  • Disclaimer: This content is provided for informational purposes only. Information herein is not intended to be a solicitation of any kind. Nothing herein shall be construed as tax, legal or accounting advice. Investing in oil and gas is highly speculative and could result in substantial losses. Potential investors should consult their attorney, accountant and financial advisors before investing in oil and gas. Past performance is not a guarantee of future performance or returns.