Securities and Exchange Commission (SEC)works hard to prevent unscrupulous companies from "cooking" their books to paint investors and regulators a better financial picture 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.

Question

Quizplus · Accepted Answer

"Caveat emptor" means "let the buyer beware." This phrase implies that investors should take responsibility for their investment decisions and research the companies they want to invest in. The SEC can only do so much to prevent fraudulent financial reporting, but ultimately, it's up to the investor to be vigilant and informed.

Securities and Exchange Commission (SEC)works Hard to Prevent Unscrupulous Companies