When you move a folder, the entire contents of the folder will be moved including all sub-folders and documents.
Moving a folder will not change any of its settings such as the "Folder Rules" or any data contained in "Custom Properties" that may have been applied to the folders and documents.
Documents and folders will retain their security settings but in some cases, the current security settings may become unusable. A good example of this might be moving folders across libraries:
Consider the following example:
To move a folder, perform the following:
Moving a folder is subject to security rights. You must have "Full Control" rights on the folder you are trying to move, because you will be deleting the folder from its original location. You must also have at least "Add" or "Change" rights in the target folder, because you will be creating a new folder in this new location.
Root level folders (Libraries) cannot be moved