Articles - Stocks
NSDL Demat Account - All You Need To Know
An NSDL Demat account is an electronic storage facility for securities such as stocks, bonds, and shares. It resembles a bank account for stocks and shares.
A depository is a company that keeps securities that investors have purchased through stockbrokers or other agencies. The term "Depository Participants" refers to these stockbrokers. Your securities as an investor, such as shares, debentures, government securities, bonds, mutual fund units, etc., are stored electronically by the corresponding depositories.
The proceeds from the sale of security appear in your trading account, which is connected to your bank account. If you decide to purchase, the stock exchange will search for vendors whose Demat accounts will be used to debit the desired shares and credit your account.
As the name suggests, convertible securities are financial instruments that can be converted from one form to another. These include preferred stocks and convertible bonds which can be converted to equity shares (common stock).