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DEMAT account is DE-MATERIALISATION account in which the stocks are stored in digital format instead of materialized format.
DEMAT a/c – Shares and securities are held electronically in a dematerialized ( Demat ) account instead of the investor taking the physical possession of the certificates.A demant account is opened by the investor with a broker .
Demat account is like a wallet which is used to store/retreive/view our shares/
DEMAT stands for dematerialised Account. Earlier, when someone purchases share it required a lot of paperwork and usually share certificate will be dispatched to that person. To simplify and to make things easier in the digital world, DEMAT account has been introduced where the shares are stored in digital form. Each person is allocated with a number where his shares are stored.
When he sells shares, it is transferred from his DEMAT account to the buyer’s DEMAT account.
This makes things easier for transferring shares.
demat – dematerialized account
which is use to save the shares electronically
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