Discussion of Forex Trading and Currency Trading

What happens to a countries stock market when their currency is changed over to a new currency?

For example Turkey lopped 3 zeros from their currency, Venezueala recently lopped some zeros, so did argentina, did they change the value of the stocks that people already owned in the companies in those countries?

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2 Responses to “What happens to a countries stock market when their currency is changed over to a new currency?”

  1. You gave a different example to what you asked.

    When a country changes over to a new currency, the market should make a small correction until humans adjust to the new currency, and that is about all that should happen.

    But when a country’s currency is devalued in worth due to inflation or deflation then the stock market will also make a correction as it again adjusts to humans getting used to the currency value changes.

  2. they just convert everything to whatever the currency conversion was - nothing is affected really

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