Priya N

[Priya N]

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.

[Priya N]

IPO – Initial Public Offer.
When a business plan is framed and if it requires public to invest money, the company directly offers shares to public by doing advertisements.
The first time purchase of the buyer from the company is called IPO. In earlier days the applications was sold by different vendors, the buyer has to fill the form and attach DD as required and send it back in order to buy any share through IPO. But now the these process are readily available through online.

[Priya N]

Primary Market:

<li style=”text-align: left;”>It is the first offer issued directly by the company also named as IPO (Initial Public Offer)
<li style=”text-align: left;”>In this market the  shares are not traded through stock exchanges
<li style=”text-align: left;”>The company do a mass advertisement through Newspaper etc.. to reach out to public to sell the shares

<p style=”text-align: left;”>Secondary Market:</p>

<li style=”text-align: left;”>This is a place in which already bought shares are being exchanged/Transferred between the buyers and sellers
<li style=”text-align: left;”>The Individual company is in no way responsible for the happing’s in the Share Market.

[Priya N]

The share holders are the owners of the company. However the shareholders don’t have any rights to ask the company to share the profits in the name of ‘Dividends’. Once the share has been sold by the company in the Primary Market, the share holder cannot request for refund. The bought share has to be traded in the stock exchange to get his/her investment back.

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