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DEMAT itself tells it is the dematerialised form of shares.
In early stages shares are in certificate form,but now it is changed to soft copy i.e digitalised and sent to demat a/c,where we can only have shares stored in that a/c.
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DEMAT stands for DE-MATerialised. DEMOTE account is required for share trading in markets where actions and activities are stored in dematerialised format.
DMAT Dematerialized Account. In Share trading it is must for the trader to have DEMAT Account. Before the existence of DEMAT account , Each individual shares are printed as a separate certificate and issued to the respective share holders. Whenever the share holder sells the share he/she has to given the certificate to the buyer, Point to be noted is the details printed in the certificate by the company during IPO will not be changed henceforth. To avoid the physical holding of the certificate now it is digitalized, the digital form of the certificate will be forwarded from the sellers DEMAT account to Buyers DMAT account.
A demat account is a account were we store our shares. After buying a share from stock market if not sold on the same day we have it in our demat account like our assert. We can retain our shares in the demat account as long as we can, until we sell them again.
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