Demat Account
A Dematerialized (Demat) account is an electronic account used to store shares, exchange-traded funds (ETFs), and other securities in digital form. It eliminates the need for physical share certificates, making trading more efficient and secure. The Demat account is linked to a bank account, allowing for seamless transfer of dividends. It is essential for trading or investing in assets that involve delivery, meaning the securities are held overnight or longer. This type of account is mandatory for anyone looking to trade in the stock market or invest in securities.
Related Terms
Direct Public Offerings
A Direct Public Offering (DPO) enables a company to sell shares directly to the public,...
Growth Stocks
Growth stocks are shares in companies expected to outpace the broader market, driven by robust...
Ichimoku Kinko Hyo
Ichimoku Kinko Hyo is a technical analysis tool that uses five lines to assess trends,...
Free Float Market Capitalization
Free-float market capitalization (FFM) is a valuation method that calculates a company's market value using...
Equity Options
An equity option is a type of derivative contract that gives the holder the right,...
Cash Ratio
The cash ratio is a liquidity ratio that measures a company’s ability to pay off...
