As the name suggests, shape (round, princess, radiant, etc.) describes a diamond's form. The beauty of the individual shapes is a matter of personal taste.
This is the term with which people are most familiar, but bear in mind that carat is specifically a measure of a diamond's weight.
A diamond's color grade refers to the lack of color. Diamonds that are white, containing little or no color, receive higher quality grades than those with visible color.
The cut of a diamond determines its brilliance. Put simply, the better a diamond is cut, the more sparkle it will have.
Almost all diamonds have tiny imperfections. Diamonds with few or no imperfections receive the highest clarity grades.