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| *Ostroff, Fair and Company>>>Investing |
I was told that for getting into share trading, I am supposed to have a) Demant A/c b) Share trading account.? |
What is the use of having these 2 separate accounts? Demat account is like a Savings account where in instead of money, all your shares in electronic form will be stored. This account is useful only for stocks. You need Trading account to actually trade in stock markets. The trading can be either in stocks or stock derivatives. Your market transactions like Buy or Sell will be through this account.u need demat acc no park your electronic shares or DEMAT (De materialized ) form of your paper assets. U need a trading account to buy and sell stocks in secondary market it is not demant it is demat acct (dematerialised)...means if u have an old physical share u shd cnvert it to demat form.other thing is a DP acct where our shares are stored like in a bank account brokers cannot close it without our permission.Pool acct can be closed by a broker. broking firms whoever told u that is absolutely right. First stage is to have a DMAT account. nowadays physical shares cant be traded (sold and bought ) so all shares are to be converted to Dmat form and for which an account is a must. For trading u have to go to a broker ( sebi approved ) whether in nse or bse. And to do business with a broker agaion u must open an account with them. this account is known as a trading account. Just go for any Trading Acc. they will open u Demat Acc. |
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