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Decree Law No. 486/99

Publication: Republic Diary No. 265/1999, Series I of 1999-11-13
  • Issuer: Ministry of Finance
  • Diploma Type: Decree Law
  • Number: 486/99
  • Pages: 7968 - 8040

Summary in plain english

What is it?

This decree-law creates the Securities Code.

This Code is a fundamental pattern for the regulation and development of the securities markets in Portugal.

What are securities?

They are documents issued by companies, in great quantity, representing rights and duties, which may be purchased or sold, specially at the Stock Market.

The companies which issue them serve as alternative funding to the bank credit.

For the investors, it is an alternative form of saving to the bank deposits and others financial products which offer different risk and profitability levels.

Exchange and promissory notes:

These are example of other documents which represent rights and obligations, and which may be purchased or sold. However, they are not securities.

The documents which represent the securities may be:
    • Paper titles (titrated securities);
    • Computer registries similar to the cash registries before the banks (cashless securities).

The best-known securities are:

    • the shares - represent a part of the share capital of a public limited company. The investor who holds shares of a company is deemed as a shareholder, holding a set of rights on the company.
    • the bonds - they have a limited duration, representing a part of the loan hired by the company before the investors.
What is the profitability and the risk?

The profitability is the income rate generated by the tax for a certain period.

The risk represents the debt regarding the future profitability variation (example: unlikely variations of the price of the invested securities).

Futures and options

The futures and options contracts are known as derivative financial instruments because:

    • They are not securities;
    • They are created based on another value (the subjacent asset).

The derivative financial instruments are negotiated in special markets - the futures markets.

The financial instruments combine several types of securities, in which:

    • part of the investment is remunerated with a fixed rate;
    • the remainder is indexed to the appreciation of an index.
When does it enter into force?

This decree-law entered into force on 1 March 2000.

Original Version


  • Legal translator is the translation of texts within the field of law


Legislative consolidation integrates the various amendments and rectifications made into an original legal diploma in order to make its consultation more accessible to the citizen.