What is 'Dematerialization - DEMAT'
Dematerialization (DEMAT) is 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.
BREAKING DOWN '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.