Investors’ Rights Protection on a Global Financial Market

In the last decades, we have been faced with a rapid development and sophistication of the investing methods that investors have at their disposal. The emergence of new micro and macroeconomic risks that have affected the markets stability, impose the re-analyzing of the prudential regulations in the field of investors’ rights protection. The present paper aims to present and analyze the necessity of investors’ rights protection in the context of reducing the informational asymmetry on the financial markets and to propose some ways of solving litigations that can appear in the international investing process. The approach, through the research method, is a dual one, offering the connection between quantitative and qualitative arguments. We show the need for investors’ rights protection through an adequate transparency of the financial information and we present solutions that should be adopted in this field by the regulatory and supervising authorities. We also identify and analyze the main risks that limit the foreign investors’ rights and offer ways of protection that can be used in the case of international litigation. The analysis done shows that the investors’ rights protection level has a significant impact on the development and stability level on the global market.