Dematerialization - DEMAT

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DEFINITION of 'Dematerialization - DEMAT'

The move from physical certificates to electronic book keeping. Actual stock certificates are slowly being removed and retired from circulation in exchange for electronic recording.

INVESTOPEDIA EXPLAINS 'Dematerialization - DEMAT'

With the age of computers and the Depository Trust Company, securities no longer need to be in certificate form. They can be registered and transferred electronically.

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