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Demat Account

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A Demat account—short for dematerialised account—is an account that allows you to hold company shares and securities electronically.

You can hold dematerialised securities such as stocks, mutual funds, bonds, exchange-traded funds (ETFs), etc. in a demat account.

So when you place an order to buy a stock, the shares get credited to your demat account. Similarly, when you choose to sell your shares, they get debited from your demat account.