What is demat a/c ? pls help

Question

hello

i m new in stock market

can any one please tell me what is demat a/c and what is the benefit of it

Answer 1

In India, a demat account, the abbreviation for dematerialised account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialised account is used to avoid holding physical shares: the shares are bought and sold through a stock broker.

Answer 2

A demat account (dematerialized account) is like a bank account, except instead of money in the account, there are shares of companies and mutual funds in the account. these accounts are operated by depositary participants, which are like banks - instead of holding physical paper certificates of shares, tehy are converted to electronic format and stored in the demat accounts.