Dematerialisation
is the process by which physical share certificates of an investor
are converted to an equivalent number of securities in electronic
form and credited into the investor's account maintained with his/her
depository participant (DP).
A depository is an entity which holds securities of investors in electronic
form at the request of the investors through a registered Depository
participant. It also provides services related to transactions in
securities based on instructions given by the investors to depository
participant.
Derivative as the name suggests are the financial contracts which
derive their value from the underlying. The underlying may be the
security or an index. Thus derivative instruments have no independent
value.
The
settlement process where the buy and sale transactions done for a
particular period (week or fortnight) are aggregated and only the
net obligations are settled after the period is over.
Investing is a quite a complex exercise. But when it comes to the
basic principles, they are amazingly simple. Anyone can become good
investor and reach your goals just by following those simple and easy
rules.
The market in which investors have the first opportunity to buy a
newly issued security like in an IPOIt is the process of selling shares
that were so far privately held to new investors for the first time
IPO.
Stock brokers offer services such as buying and selling on behalf
of investors. They also provide advisory services. If stock brokers
are also registered as a portfolio manager, they can offer PMS services.