A diamond is found as a rock, not much to look at! The transformation from rock to the brilliant finished jewel is usually taken for granted. The cutting process, used to bring out the jewel as we know it, is a very important one and the diamond needs to be studied very carefully by a highly skilled diamond cutter before it is touched.

Nowadays hi-tech computers scan the rock using x-rays and lasers to decide how to best cut the diamond to bring out the best of its qualities. The diamond cutter will know before he starts what the diamond will probably weigh, its dimensions, the shape and the quality.
A diamond is cut by polishing it against a spinning turntable covered in diamond dust. This is because only a diamond can cut another diamond. Nothing else is as tough as another diamond.
The diamond is cut using many angles that would have been carefully planned to allow the most amount of light in to the stone. Because a diamond is so refractive (reflects light very well) a well cut diamond will allow the light to be bounced around inside the stone and only exit through the top (table) of the diamond. That is the reason you see so many angles (facets) on a diamond, so as to allow it to catch the light and glitter/sparkle.
A shallow cut or deep cut diamond is not cut to the ideal proportions and will thus allow light to escape through the sides or the bottom of the diamond.
Therefore the cut of a diamond is very important. When someone tries to sell you a diamond that they say looks bigger than the weight would suggest (a good spread), they are actually trying to sell you a diamond that is not cut properly and allows light to escape. It would therefore lack brilliance and fire (glittering, sparkling etc.) though may look a little bigger once set.