Question

Explain the need and importance of demat account.

Answer 1

 A trading account is used to place buy or sell orders in the stock market. The demat account is used as a bank where shares bought are deposited in, and where shares sold are taken from.

*_*Dear if you want to enter in stock market or if you interested in buying or selling of shares then firat you need to open a demat account.

Answer 2

A Demat account is used to hold stock in electronic format. Demat account or dematerialized account provide facilities of holding shares and securities in electronic format. During online trading shares are bought and held in Demat account thus facilitating easy trade for users.

HOPE THIS HELP YOU.