Insider trading refers to the buying or selling of a publicly traded company's stock by someone who has non-public, material information about that stock. Participating in insider trading, whether knowingly or unknowingly, can have serious implications for demat account holders in India.
When opening a demat account, consider factors like broker reputation, account opening charges, and AMC. Choose brokers with intuitive trading platforms and research tools. Evaluate brokerage fees, customer support, account features, and security measures.
Demat account offers benefits for trading and investing in stocks, mutual funds, and bonds. Shifting to a new broker may be necessary due to various reasons. Transferring a demat account requires proper documentation and steps for a seamless process.
In case of disputes, investors can file complaints or grievances with market participants to seek resolution and protect their rights. If the issues aren't resolved satisfactorily, investors can turn to initiatives like the Common ODR Portal introduced by SEBI for additional support.
Mobile phones in India have transformed trading, making it convenient and accessible. Retail investors can now open demat accounts quickly using mobile apps. Mobile trading has gained popularity, especially during lockdowns, allowing retail investors to open demat accounts easily.
A demat account acts as an entry point into stock investing, offering convenience and security. Retail investors should follow precautions like regular monitoring, preventing inactivity, and avoiding herd mentality to maintain a smooth demat account flow.
Discount broking firms have outperformed traditional full-service brokers with lower fees and faster account setup. However, full-service brokers provide extensive market experience and services like asset management.
A demat account holds and trades securities digitally, eliminating physical certificates. Derivatives are financial instruments derived from underlying assets like stocks, bonds, etc. They help investors hedge risks, speculate on price movements, and manage exposure to financial markets.
Short selling is a strategy employed by experienced investors to profit from downward price movements by selling borrowed shares at a high price and repurchasing them at a lower price.
A single demat account is a type of dematerialised account that is opened and maintained by a single individual, while a joint demat account allows multiple holders with equal rights. Converting single to joint is not possible.