Do yourself a favor. The greater the potential opportunity in relation to the amount at risk, the greater the potential for a scam and the more time should be taken to check it out. There are real opportunities available in this world, but they usually require a lot of hard work and patience. The promise of easy money is like the odds of winning the lottery. It's o.k. to bet a few bucks that you can afford to lose, but it's really foolish to bet the farm on a million to one gamble.
Due diligence is the process of investigating a potential investment.
The term is also used in connection with the purchase of a business or real estate and in mergers or acquisitions. All of the investigative procedures that are used by a potential buyer to evaluate and investigate the information provided by a potential seller are called due diligence. When individuals are contemplating the purchase of some stock in a company, they have the freedom to decide how much time and money to spend to investigate and evaluate the company behind the potential investment. These services get the information from the quarterly and annual financial statements that are filed with the SEC and are certified by independent CPA firms as to the validity of the accounting procedures utilized. The problem for the offshore investor is that similar information isn't always as readily available about companies outside the U.S. who are not subject to the U.S. securities laws by virtue of being listed on one of the U.S. securities exchanges.