Investors should understand that when purchasing stock the principle of __________ is in effect.It benefits the investor to do research on the company so that they will make a wise purchase.

Question

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The principle of "caveat emptor" or "buyer beware" is in effect when purchasing stock. This means it is the responsibility of the buyer to do research on the company before making a purchase to ensure that they are making a wise investment decision.

Investors Should Understand That When Purchasing Stock the Principle of __________