What is a diffrence between demat and physical securities?

Question

What is a diffrence between demat and physical securities?

Answer 1

demat is electronic form of share

Answer 2

physical securities ar share certificates in paper form and demat is the same share in electronic form. for example if u have rs 10,000 in cash in your pocket  it is physical, but if u put the same in bank and have only an entry to show that u have put rs 10,000 in your account is is akin to demat

Answer 3

earlier if u remember shares used to be in form of certificates or papers, in short physical form, now the same have been changed to electronic form just like earlier lalas used to have bundles of notes but now they are in electronic form in banks, allthogh if required they can be converted again to physical form, ditto with shares, since the material form has been removed so they have become DEMAT.

it helped a lot t curve use of benami shares, theft of physical shares, loss during transit as also helped to speed up the process of delivery

i hope it suffices

thanks

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Answer 4

Dmat - Is in the electronic form of shares. You required an account to store this, with a stock broker.

Physical - It is paper form. No broker account required to buy and sell. Certificate will come to you directly by mail.

Note1: All the shares that trading in the stock exchange have compulsory dmat form.

note2: If you have a physical stock certificate, first you have to convert the same to dematerialized form and only can sell.

note3: You can convert a dmat share to a physical form and vice versa. To sell a stock in the market, it should be in the demat form.

note4: dmat shares can be transferred to any account using the cheque leaf available when you opening the dmat account. It is just like transferring money from one bank account to another by giving the cheque to the second bank.

does this make sense and cleared your doubts?

Answer 5

Demat shares are dematerialized shares - which means that the shares are held in non-physical, electronic form in your account.

In case of physical shares, you will have the physical share ownership certificate with you.  But incase of demat, the shares will be in electronic form in ur account.