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DEMAT Shares : Shares in Electronic form

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Benefits of Investing in Shares

Everywhere people are investing a large amount of their savings in share markets. Do you know that there are very good reasons and huge benefits of doing like that?

Your Investments Grow Quickly

Your invested money in shares will start growing quickly. Over the long term your investment in the stock market can easily offer at least double of what is possible through your bank deposits. There is also a chance to get regular income through dividends from the company’s from which you have brought the shares.

Shares are easily Cashable

Investment in shares are easily cashable unlike your investment in property. Now a days using online trading your investment in shares are very easy to manage from your desktop computer you do not have bothered to go to the broker on stock exchanges to sell or buy your shares. To start investing in shares you do not need to have a huge investment. Start investing in shares just Rs. 5000 (Indian currency).

Regular income from shares

In order to have a regular income from shares you do not have to be a Economist, a chartered accountant for a genius of mathematics. All you need is just common sense and little time and effort to know the basics. You can learn the basics of shares through our website, which is updated regularly with topics about shares and your money management. There as also many other online resources, which are freely available.

Online trading

With Online trading there are many advantages than before. An investor or a trader can now is buy or sell shares from any part of the world. An online investor can buy or sell his shares through this online trading systems and know the price instantly and execute the orders immediately. In India after introducing online trading the trading volume in stocks and shares has increased in huge volumes, and this has helped to increase the liquidity of listed stocks in India.

Trustable Trading systems

With online trading the investors and traders have got more trust in the system, since they can watch their orders being executed for the price they want. This was not possible with the earlier systems through online trading in India. The main advantage is of the transparency of transactions done at stock exchanges.

What a dematerialisation of shares?

You might have heard of the demat account. In order to start trading in Indian stock exchanges you need to open the demat account. Dematerialisation is a term used for converting physical share certificates to a de materialised on electronic form share. After you convert to any electronic form share the physical form will not exist in India this conversion is done by central securities depository Ltd and national security is depository Ltd they also keep custody of dematerialised shares on behalf of share holders. The central securities depository Ltd acts as a depository for Bombay stock exchange (BSE). The National Securities Depository Ltd Is the Depository for NSE

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4 COMMENTS

  1. To have demat shares or to dematerialise shares is comparatively a new concept in share trading. There are numerous advantages of such shares. First of all it gives flexibility to the share traders. They can trade in the share market from all places across the globe. To put it simply, demat shares increases the participation of people in share trading.

  2. Dematerialisation is a term used for converting physical share certificates to a de materialised on electronic form share. Quiet a new concept in economic times. Investments Grow Quickly,Shares are easily Cashable,Regular income ,Trustable Trading -these are some of the benefits listed in this article. It has really involved a lot people in trading.

  3. Dematerialization has many advantages. There is transparency in share trading and the prices of shares cannot be manipulated. There is no need to assemble in a particular place and shout the prices like what used to happen previously. Demat accounts are very easy to open and usually do not have any minimum limit, you can invest as much as you want. There is less paperwork in this type of trading. The decision to dematerialize the shares was indeed a revolutionary step.

  4. Dematerialization of shares is indeed a major change of the share market. It involves less paperwork. But a very ideal picture of the share market is portrayed in the article which is not. Shares no doubt is the best way to increase your money but what about the risk factors, they cannot be avoided.

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