Question

In general, stock markets allow for more governance and attract more investors when they have all of the following EXCEPT:?

1) more voting rights for shareholders
2) more legal protection for shareholders
3) more enforcement of the laws
4) less stringent accounting requirements

Answer 1

Stock markets allow for more governance and attract more investors when they have more voting rights, legal protection for shareholders, and enforcement of the laws, while less stringent accounting requirements weaken the governance and attractiveness of the stock market.

Step-by-step explanation:

In general, stock markets allow for more governance and attract more investors when they have all of the following:

• more voting rights for shareholders
• more legal protection for shareholders
• more enforcement of the laws

The correct answer would be 4) less stringent accounting requirements. Stock markets require companies to have proper accounting standards and financial reporting to ensure transparency and investor confidence. Having less stringent accounting requirements would weaken the governance and attractiveness of the stock market.