Demat

We all have heard about saving accounts. Many of us are holding multiple bank accounts with banks, which allows us access to our savings. At the same time, secures our hard-earned money from theft and mishandling. Similarly, the Demat Account secures investors.

Many of you might have heard about Demat Account, but what is this account all about? Before we share nuances about this important term, let’s learn the term in simple language, making it relatable even for a normal investor. Do you know, that if you want to trade stock or invest in the stock, the Demat account is a prerequisite? It empowers you to hold shares and securities in electronic format.

Coming to its full form, the term stands for a dematerialized account. The prime objective of the Demat account is to hold shares that have been bought or dematerialized, converted from physical to electronic shares.