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What is the diff b/n share trading a/c and demat a/c ?


What is the diff b/n share trading a/c and demat a/c ?

Demat a/c refers to Dematerialized account which converts all physical paper stock documents into electronic form. Such electronic documents are kept in Demat A/c. Today all purchase/sale of stocks are in Dematerialized format so that they are transferred electronically to new buyer within the system. No need to physically submit the documents. This ensures speedy transfer of ownership and reduce the problems in paper format like loss/theft/damage etc. so if u buy shares, they are kept in demat accounts. share trading account is the online process of buying/selling shares. u buy shares or sellthem in share trading account. You buy shares in share trading account and after the transaction, they are moved to demat account for custody. when u sell them, they are removed from ur demat account and moved to the a/c of new buyer.

1.Demat/ac- fr purchasing or selling the share u need to open demat/ac.
2.with da help of demat/acu can purchase & sell any share,of any co. is known as share trading . hope make u clear pic

demat a/c is like a bank account where u can hold ur shares.

if u want to sell the shares in the demat a/c or to purchase a share in secondary market then u need to have a share trading a/c.

wihtout trading account u cannot sell or buy in the secondary market.

Demat account is the dematerialized account which is like your bank account, which holds the stocks in dematerialized form.
Trading account is required for trading these stocks in the stock exchanges.

Demat a/c is opened one time after that you can opened trading a/c.

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