The Securities and Exchange Commission (SEC) works hard to prevent unscrupulous companies from misrepresenting themselves to paint a better financial picture for investors than they really have. Yet, in the end, it is up to investors to research the companies in which they want to invest because __________ is the norm when investing in the stock market.
A)modus operandi
B)caveat emptor
C)de facto marketing
D)ćest la vie
E)anguis in herba

Question

Quizplus · Accepted Answer

"Caveat emptor" is a Latin phrase that means "let the buyer beware." It is a principle in commerce that places the responsibility on the buyer to perform their own due diligence before making a purchase. In the context of investing in the stock market, investors must research the companies in which they want to invest because there is always a risk of fraudulent misrepresentation or inaccurate information. The SEC's efforts to prevent such activities are important, but ultimately it is up to the investor to be vigilant and informed.

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