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Caveat emptor. “Caveat emptor” or “caveat” for short is a latin phrase that means “buyer beware.” It is a disclaimer and contract law principle that places the burden on the buyer to perform due diligence before making a purchase. For investing, it means the investor has the responsibility to gather the necessary information to make an informed investment transaction.
Due diligence. Oxford Languages defines due diligence as “reasonable steps taken by a person in order to satisfy a legal requirement, especially in buying or selling something; a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential.”