Terms Beginning With 'd'

Dematerialization

  • January 18, 2020
  • Team Kalkine

In simple words, a transition towards electronic bookkeeping from physical certificates, is termed as dematerialization. The concept of dematerialization was introduced to mitigate the risks connected with the trading of shares in paper format as it offers more security and convenience.

If a trader or investor intends to dematerialize his physical securities like government securities, bonds, share certificates, etc., he needs to possess a demat account.

 

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