123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Demat: Many Problems: One Solution

Profile Picture
By Author: Snehal Desai
Total Articles: 29
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

When you transact with your preferred bank, it maintains the documents of your transaction. Similarly, when you trade with your demat account, you will be able to maintain all the relevant documents like: share certificates, bonds, government securities, mutual funds and exchange traded funds in the most convenient way. Trading through Demat account is the safest way and all in one place. During online trading, shares are managed in a demat account, thus facilitating easy trade for the investors.
During the time of online trading, a demat account number is required to enable electronic settlements of all the trades. Demat account functions like a bank account, where the money and transactions are managed through a bank passbook. In a similar form, shares & stocks are kept in electronic form and the transactions (whether debit or credit) are managed accordingly. A demat account can be opened with no balance of shares. You can too have a zero balance in your account.
Benefits of having a Demat Account for Online Trading:
Gone are the days when you used to hold your shares in physical forms. It not only involves lots of paperwork, long process and also involves risk of falling into the trap of fake shares. Demat account is must to trade in India's stock exchanges.
Having a demat account is like maintaining a centralized approach to all your investments.
All the personal details of your account are automatically updated every time you transact. It is a very hassle-free way of updating your records.
Physical transaction of shares also involves additional cost of stamp duty. But whereas when you have a demat account you manage all the transaction online. Hence the additional cost rules out.
Over a period of time, physical shares tend to get destroyed with wear & tear. You got to be very careful in maintaining physical shares but where are with electronic transaction, Demat account is much preferred.
Having a demat account is not only hassle free, but also the most convenient & smart way to trading. If you somebody who enjoys trading with shares/ stocks, then having a demat account is a must without any extra thought.
The author of this article is a leading stock broker in India. He offers consultation in various instruments like equities, derivatives, currency derivatives, Mutual Funds,

Total Views: 152Word Count: 383See All articles From Author

Add Comment

Investing / Finance Articles

1. Why Does A Business Need Asset Management And Wealth Management Firms?
Author: Avendus Group

2. Do We Have Any Classes For Share Market For Beginners?
Author: STOCKPRO

3. What Is The Share Market? How Can I Learn Everything About Share Markets And Shares?
Author: STOCKPRO

4. How Can I Do A Share Market Course?
Author: STOCKPRO

5. Poonawalla Finance Is A Prominent Nbfc (non-banking Financial Company) That Presents Fast Unsecured
Author: reeta menon

6. Taxes 2020
Author: futufan

7. How To Eat Healthy On A Budget
Author: John Mike

8. A Silver Lining Is Seen As Government Announces 1.7 Lakh Crore Relief Funds
Author: Marketsmith India

9. How To Use Car Loan Emi Calculator?
Author: Arjit Chalmela

10. Daily Big Picture: Nifty Rebounds After A Record Fall
Author: Marketsmith India

11. Investment Banking And Asset Management In India
Author: Avendus

12. Lower Circuit For The Second Time In One Month
Author: Marketsmith India

13. Personal Loans - All You Need To Know
Author: Fayeem

14. Know The Difference In Home Insurance And Home Loan Insurance
Author: Fayeem

15. Share Market Basics: Overhead Supply Can Repulse A Stock’s Climb
Author: Marketsmith India

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: