Demat Account: De-materialized account to trade in listed stocks or debentures required for investors by SEBI.

In demat account, shares and debentures are held electronically. A demat account is opened by the investor while registering with an investment broker. The demat account number is quoted for all the transactions to enable electronic settlements of trades to takes place. Access to demat account requires an Internet password and transaction password as well as initiating and confirming transfers or purchases of securities. Advantages: Reduces brokerage charges Enable quick ownership of securities Avoids confusion in ownership titles Provides easy receipts of public issue allotments or Initial Public Offerings Avoids signature mismatches Loss of certificates in transit Eliminates risk associated with forgery, counterfeiting and loss due to damaged stock certificates Depository system is nothing but electronic bookkeeping. Dematerializing securities is nothing but converting physical records of investments into electronic records. Debenture: A debenture is a document, which is; either creates a debt or acknowledges it. A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes the part of the companys capital structures. Securities: A security is a negotiable financial instrument, which holds financial value. Securities are categorized into debt securities, equity securities and derivative contracts. Bank Note:

A bank note often known as a bill, paper money or simply a note, is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions as legal tender. Bonds: A bond is a debt security, in which the authorized issuer owes the holder a debt and, depending on the terms of the bond, is obliged to pay interest to use or to repay the principal at a later date termed as maturity. A bond is a formal contract to repay the borrowed money with interest at fixed intervals. Stocks: The capital stock of a business entity represents the original capital paid into or invested by its founders. It serves as a security for the creditors of the business since it cannot be withdrawn to the detriment of the creditors. Difference between Stocks and Bonds: Both bonds and stocks are debt securities, but the major difference is stockholders have an equity stake in the company i.e., they are the owners, whereas bondholders have creditor stake in the company i.e., they are the lenders. Another difference is that the bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. Equity Trading: Equity trading is the buying and selling of company stock shares. Shares in large publicly traded companies are bought and sold through one of the major stock exchanges such as NYSE, LSE, Tokyo Stock Exchange, which serve as managed auctions for stock trades. Stock shares in smaller public companies are bought and sold in over the counter market. Proprietary Trading is buying and selling for the traders own profit or loss. In this case, the principal is the owner of shares. Agency Trading is buying and selling by an agent, usually a stockbroker, on behalf of a client. Agents are paid a commission on performing the trade. Market Maker: A market maker is a company, or an individual, that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid offer spread.