Investment Fundamentals

Due Diligence

Definition

What is Due Diligence?

The investigation performed before investing to verify facts, risks, ownership, finances, and legal claims.

Example in practice

Before buying land, the investor checks title documents, location, valuation, and outstanding disputes.

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The original amount of money invested or lent, excluding later returns.

Money or other resources committed to produce income, growth, or another economic benefit.

An asset or commitment of money made with the expectation of future income, growth, or both.

Anything with economic value that can be owned or controlled.

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