Security (financial markets) (Fr. garantie, Ro. garanție, acțiune; derivat financiar, Sp. Fianza,Gr. εξασφάλιση απαιτήσεων) (See also: secured creditors, stockholder, stakeholder, financial derivatives, bonds, capital markets) = a negotiable instrument with financial value that makes it tradable on a financial/capital market. Its definition differs from one jurisdiction to another: security can represent an ownership position in a publicly-traded corporation (for stocks), a creditor relationship with a governmental body or a corporation (bond) or some rights to ownership as represented by an option. 

The company or entity issuing the security is called the issuer. Securities are typically "non-certificated", that is in electronic (dematerialised) or "book entry" form, but they may also be represented by a certificate. 

Useful links

Legislation - United States Securities Act of 1933 [English] – Law of Financial Security in France [French] - Directive 2003/71/EC on the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC [English] - Law no. 297/2004 regarding capital markets [Romanian] - Directive 2004/39/EC on markets in financial instruments [English] - United Kingdom Financial Services Act 2012 [English] - Directive 2014/49/EU on deposit guarantee schemes [English]  - Directive 2014/91/EU on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as regards depositary functions, remuneration policies and sanctions [English] - Regulation EU no. 909/2014 on improving securities settlement in European Union and on central securities depositories [English]

Organisations and associations - Romanian Financial Supervisory Authority – European System of Financial Supervision from the European Commission - Financial Market Authority from Austria - UK Financial Services Authority - USA Security and Exchange Commission - The Financial Markets Association - Global Financial Market Association - Association for Financial Markets in Europe

Case law - United States Supreme Court, Securities and Exchange Commission v. W. J. Howey Co.,(1946) - United States Supreme Court, Securities and Exchange Commission v. Chenery Corporation (1947) - Chenery II - United States Forth Circuit Court, Grayson v. Anderson (1991) - United States Supreme Court, Central Bank of Denver v. First Interstate Bank of Denver (1994) - Amsterdam Court of Appeal, Shell Petroleum N.V. and The Shell Transport and Trading Ltd., the Stell Reserves Compensation Foundation, Stichting Pensioenfonds ABP, Stichting Pensioenfonds Zorg en Welzijn and the Vereningind van Effectenbezitters- Settlement Agreeement (2008) - Amsterdam Court of Appeal, Converium Holding AG, Converium Securities Compesation Foundation (ZFS) v. Dutch Investors Association -  Settlement Case 2010) - United States Supreme Court, Morrison v. National Australia Bank Ltd. (2010) - Ontario Superior Court, Dugal v. Manulife Financial Corporation (2011) - United States Supreme Court, Halliburton Corporation v. Erica P.John Fund (2014) - United States Second Circuit Court, U.S. v. Newman (2014)

Online publications - Caramihai, Georgiana, 2016, The Act on Control over Certain Investments - between the state’s needs and the European legislation. Report on Polish law, [English] - Deloitte Financial and Accounting Reporting Update, November 2014 [English] - EY Financial Reports and Publications [English] - PwC Capital Markets Integration Report, September 2015 [English] - PwC Blue 2.0: Redefining Financial Services, August 2015 [English] 


Campbell, Dennis, 2009; International Securities Law and Regulation, Salzburg, Austria, published by Yorkhill Law Publishing and the Center for International Legal Studies [English]

Dumas, Blaise Allaz Bernand, 2013; Financial Securities: Market Equilibrium and Pricing Methods, Sheffield, UK, South Western College Publishing Springer Science, Logotechnics CPC Ltd [English]

Fabozzi, Frank J.; Mann, Steven V.; 2005, Securities Finance: Securities Lending and Repurchase Agreements, New Jersey, USA, John Wiley and Sons, Inc. Publisher [English]

Moloney, Niamh; 2014; EU Securities and Financial Markets Regulation, Oxford, United Kingdom, Oxford University Press, Oxford EU Law library [English]

Schinasi, Garry J.; Kramer, Charles F.; Smith, R. Todd, 2001, Financial Implications of the Shrinking Supply of U.S. Treasury Securities, published by the International Monetary Fund [English]

Soulier,Jean-Luc; Best, Marcus, 2005, International Securities Law Handbook, Hague, The Netherlands, published by Kluwer Law International [English]


By Daniela Ghicajanu