Terms related to Demat Account

Bull market

In a bull market, the prices of assets show an upward trend. The financial markets are typically bullish in an economy that shows signs of growth and development. It’s generally a good move to purchase shares in a bullish market.

Bear market

A bearish market shows signs of decline. The prices of assets display downward trends consistently. When the market is bearish, you may find that you’re inclined to sell off your assets and the confidence is low, and investing can be risky.

Dividend

Many listed companies pay a part of their profits to shareholders. This is known as dividend. By investing in the right companies, you could earn dividends that act as a supplementary source of income.

Earning Per Share

EPS is a financial ratio that you obtain by dividing a company’s profit by the number of shares it has. Analysing parameters like the EPS can help you understand a company’s financial health, so you can make better investment decisions.

Depository

A depository is an entity that holds your financial assets in a dematerialized form. You can buy or sell securities with the help of a depository. Furthermore, depositories also keep a record of all your trades.

Depository participant (DP)

A depository participant is the link between the depository and the companies that issue stocks and other instruments. DPs can be banks, financial institutions, or brokerage houses. IIFL is a depository participant.