The Securities and Exchange Commission (SEC) works hard to prevent unscrupulous companies from changing their books to give a better financial picture.Yet, in the end, it is up to the investor to research the company in which they want to invest because __________ is the norm in the stock market.

Question

Quizplus · Accepted Answer

"Caveat emptor" is a Latin phrase that translates to "let the buyer beware." It means that the buyer is responsible for doing their due diligence and researching the company before investing, as fraudulent behavior is common in the stock market. The SEC can provide some protection, but ultimately, it is up to the investor to be aware and cautious.

The Securities and Exchange Commission (SEC) Works Hard to Prevent