Sunday, January 1, 2023

what is dematria?

What Is dematria?

Dematria, also known as digital stock ownership or dematerialized securities, is the process of converting physical stocks, bonds, and other financial assets into electronic or digital form. It is also referred to as dematerialized trading or online share trading. Essentially, it is the digitization of physical securities so that they can be bought and sold electronically without the need for physical transfer or paperwork.

The idea behind dematria was first introduced in India in the late 1990s when the number of stock exchanges began to grow rapidly. Since its inception, dematria has been adopted by many countries across the world, allowing investors to manage their portfolios electronically from anywhere. This advanced technology removes the need for investors to hold physical share certificates and make trading easier than ever before.

A demat account allows investors to buy and sell shares in an electronic format from their computer or mobile device at any time of day. When a purchase is initiated, an order is sent directly to an exchange that matches buyers and sellers for the particular security being traded. Once a trade is completed, all information regarding it is updated in real-time within seconds - eliminating paperwork well before the deal is concluded!

Whenever an investor makes a trade using a demat account they are charged various fees such as account opening charges and transaction charges by their broker. Furthermore, they must pay a deposit security amount against any short selling orders placed with them. This ensures that if his/her bet on the market does not pay off then he/she will still have sufficient capital left over to cover any losses made during trading activities.

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