Procedure of Buying and Selling Shares Through Demat Account

Blogs

Procedure of Buying and Selling Shares Through Demat Account

Date: Oct 24, 2022 | Time: 08:51:00 PM | Author: Editor News

When all the transactions of buying and selling shares can be done online, through your Demat account, everything has turned out to be super easy. In the comfort of your home, with a single click, you could make this happen within a short span of time. However, it is crucial to have a Demat account to do all these transactions quickly and is an unavoidable factor in the financial market. Besides that, with such accounts, you could also hold mutual funds, government securities, exchange-traded funds, bonds and others under a single account. The following parts of this article will let you know about the procedure of buying and selling shares through a Demat account.

Steps to buying shares through a Demat account

· The very first step is to acquire a PAN card, as it will be essential to purchase and trade shares in the stock market. The income tax division is in charge of issuing Permanent Account Number (PAN) cards. You may apply for a PAN card online or through an agent. You are eligible to open a Demat account once you have obtained your PAN.

· After that, a trader must set up a Demat account along with an online trading account. For this, you can approach a Depository Participant (DP) or a broker for assistance. Certain brokers may charge a modest fee for orders done over the phone. However, placing a purchase online is free.

· Then ultimately, you will be beginning to trade with the shares you have. Upon account creation, you may visit the online trading platform of your broker, determine the shares you want to purchase and execute a buy order. Brokers who deal in stocks, on the other hand, typically ask for a margin for acquiring shares in surplus of the amount.

Steps to sell shares through a Demataccount

Since Demat is a digital account, the entire selling process from your Demat account is also electronic. So the time has come for you to sell the shares in which you have invested. Perhaps it would sell because you've met the financial goal for which you purchased the stock, or it could be because the stock has been dropping for a long time and you don't expect to continue your losses in the future.

· To begin, you must have a Trading account to sell shares in your Demat account. It is the channel via which you may sell shares from your account.

· Choose the stock from your Trading account that you wish to sell. Select 'Sell' next to the stock and enter the number of shares that you are wishing to sell.

· You must also remember to Select a broker and sell the securities on an NSDL-affiliated stock market (National Securities Depository Limited). Your Demat account will be debited for the specified number of shares of the selected stock.

· The current market price of the stock at the time will be the selling price of each share. Furthermore, the brokerage fee will be taken from the sale profits, and the net selling price will be deposited into your Bank account.

Bottom Line

Since your Demat account is where your shares are kept in dematerialized form, you must choose a reputable and trustworthy broker when opening one. However, before making real money market investments, it is necessary to become acquainted with the trading platform. Following that, you must make profits by buying or selling shares on your trading platform.

For More Free Training Sessions for Different Languages : https://www.wwatpl.com/free-trading-training-sessions

Blogs

Procedure of Buying and Selling Shares Through Demat Account

Recent Blogs