According to empirical research, in countries where stockholders' rights are strong, firms issue stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights moral hazard in stock markets.

According to empirical research, in countries where stockholders' rights are strong, firms issue More stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights reduce moral hazard in stock markets.

Explanation

A Moral hazard is said to have occurred when one party (i.e insured Party) increases its exposure to risk  ,because some other party bears the cost of those Risk.It reflects the tendency of a person to take more risk as the consequence of the risk taken has to be beard by some other party

The moral hazard problem is less severe in bond markets than in stock markets. In addition, moral hazard arises in bond markets when firms issue bonds with high default risk.

So it is appropriate to say that , in countries where stockholders' rights are strong, firms issue More stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights reduce moral hazard in stock markets.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are: