A Demat account, also known as a Dematerialized account, is where you can hold your stocks and securities. Earlier, when you buy a company’s stocks, you get a physical certificate of the shares. Today, you no longer have to hold any physical certificates. By opening a free Demat account online, you can hold your shares in an electronic format.
So, a Demat Account is an account that allows you to hold the company shares and securities in electronic format. In addition to stocks, your Demat account can hold mutual funds, exchange-traded funds (ETFs), and bonds.
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In running a business, the first thing required is money, and second, a bank account. Gone are the days of dealing in cash. Today most business houses operate through their bank account. It helps to keep track of the transactions and operate the business smoothly.
SMEs and large corporate companies have separate savings and current accounts for bank transactions. The current account is used for regular transactions, whereas the savings account is used to draw interest on the uninvested amount/profit amount of the company which can be used as future undertakings or any emergency.
But are the banks providing enough interest on your money? With the interest rates dropping every year, do you want to invest your money in the bank and earn only a handful?
Investing in a Demat account is better than keeping your money in the bank account. A Demat account provides better interest rates and quick loans for future use.
For opening a free Demat account, there are multiple brokerage firms in the stock market. You should open your Demat and trading account with a reputed, full-time brokerage firm to get all kinds of support to maintain your account. A Corporate Demat account has got certain benefits that you will not get in a personal Demat account.
The process of opening a Corporate Demat account is very simple. You just require the following documents:
So what can be better than a bank account? If you have your business capital currently not in use, or you are keeping money from your savings in the bank to generate more for future purposes, then it’s time to apply for a Corporate Demat account where you can get higher returns and if necessary quicks loans from your investment.
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