Demat Account

Objectives

Brief about the concept of online trading.

Explain how share trading can be done through demat accounts .

Describe the formalities involved in opening a demat account

What is online trading?

Online Trading is the act of placing buy/sell orders for financial securities and/or currencies with the use of a brokerage's internet-based proprietary trading platforms.

Shares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and optionsShares, Futures and options

How it Works?

You can buy and sell shares online with the help of a stock broker and an internet based computer system

Seller

Buyer

Stock Broker

Demat Account

Demat account is an account wherein you can hold shares of various companies in the dematerialized form. In a 'demat account' , shares and securities are held electronically instead of the investor taking physical possession of certificates.

Access to the demat account requires an internet password and a transaction password. Purchases and sales of securities on the demat account are automatically made once transactions are confirmed and completed.

How to open a Demat AccountFor opening a demat account, no capital is required, you can approach any of the registered stock brokers, (D P’s) and open an account with them. All you require is a Proof of Identity, Proof of address and a PAN .