What happen to shares if USD disappear tomorrow?

Hello,

A simple question if someone have an idea :slight_smile:
Tomorrow like Argentina USD worth nothing more than a lot of debt and no one want this currency.

What happen on the stock market US exchanges and shares on these exchanges ?

  • You lost all because all companies will delist their shares from this bad exchange for go to the new main currency country exchange ?
  • Shares prices increase due to lost value of USD from other currency ?
  • Companies can move shares from one exchange to another ?
  • Companies buy all current shares and resell same shares at the same price on another exchange ?

Thank you because not found what can happen during a switch of main currency

It will not disappear.

1 USD was 5.5 CHF two centuries ago. Now 1 USD = 1 CHF. It will (probably) just continue slowly

1 CHF was 80 old french francs (=0.8 FF), then it evolve progressively to 4.3 FF when the euro was introduced. Now a CHF is in theory = ~6 FF.

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The shares have nothing to do with the exchange. A share is a share no matter how you got it. If you have some share and the exchange delists it, you still have the share but no easy way to trade it anymore.

Also the share does not have any explicit currency attached to it. You buy a part of the company not some money fund. The currency is just set by the exchange so people have a convenient way of trading without doing forex first. I.e. if an US share is traded in Europe you can probably buy it in EUR, if it’s traded in India you can buy it in Rupees. But it’s still the same share.

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Yes but can be 1USD = 0.01 CHF like Argentina and other country and can happen quickly if countries refuse to use USD now like Russia probably China.

You would still own the underlying companies and not us dollars.

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Thank you for your reply

The shares have nothing to do with the exchange. A share is a share no matter how you got it. If you have some share and the exchange delists it, you still have the share but no easy way to trade it anymore.

So if US refuse to list China shares all NYSE/NASDAQ shares go directly to OTC ?

Also the share does not have any explicit currency attached to it.

Ok but a company can retrieve these OTC orphan shares and relist them on another exchange with another exchange currency or that’s not possible ?

Thank you :slight_smile:

If the world’s biggest economy starts a sudden hyperinflation spiral, I’m sure we’ll have many things to worry about :slight_smile:

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The company has nothing do to with the shares. It’s all about your broker. If the exchange where you bought your shares delists them, your broker can find a new exchange and let you trade them there. Or if thats not possible they maybe enable OTC… Or you have to find a buyer privately and send your shares directly to their account.

This usually happens with ETF that have a to low trade volume, if you want to google the situation.

The USD failing would have other massive consequences so that things getting delisted from some exchange would be the least of your worries.

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What you think about printing so many money ?
It’s the same for EU about 5000 billions for save EU banks read that : https://chevallier.biz/bce-un-sauvetage-pour-le-pire/

No real issue just all prices increasing and increase of bank interests. So high debt who cause issue to EU/US and China give us their new virtual money for replace worthless USD money. It’s not the first time, last time was £ replaced by $ and now we need a new key on our keyboard for virtual yuan :wink:

Thank you for your reply

I try to understand what happen when main currency crash and replaced by another.
Like what happen with ÂŁ to $ long time ago :slight_smile:

It’s the company who choose an exchange and sell share on this exchange during IPO no ?
Broker can sell all shares too and give some money if not accept trade on OTC ?
Yes may be let made a shares transfer but that’s pretty hard to sell due to orphan share on the broker :confused:

I found not any information for the moment but I will search on ETF thank you for advice

Just kill actual worthless money due to debt and push other more valuable money or real value assets
US want delist some China companies from US exchange and China can do the same with US company at HK or just begin to refuse USD and force all countries to use their new virtual yuan for all transactions with China. Like we are dependent and almost all go to/from China we haven’t the choice. USA can’t control or block virtual money like standard money.
If you look further US can’t produce anymore oil due to this lower price why continue to pay/trade oil with USD ? Russia already refuse to sell oil and gas in USD so other countries can refuse too.

I’m a beginner so may be I’m 100% wrong but I prefer to know what can happen to market and shares.

Yes, It’s in the companies interest to be listed on the exchange… So exchanges don’t randomly list shares for free. But once the shares are public (i.e. after the IPO) they technically could.

Broker can sell all shares too and give some money if not accept trade on OTC ?
No, the Broker just helps you to store your shares and to make orders on an exchange. To sell a share you need to find another person that wants to buy it for your desired price. You can’t just give it back to the company…

To understand it better, imagine if the share was a little gold bar that you had at home.
What would happen if the USD fails? And how would you trade that with other people?

Yes, It’s in the companies interest to be listed on the exchange… So exchanges don’t randomly list shares for free. But once the shares are public (i.e. after the IPO) they technically could.

Big thank you :slight_smile:

To understand it better, imagine if the share was a little gold bar that you had at home.
What would happen if the USD fails? And how would you trade that with other people?

It’s simple an USD paper can may be accepted in some countries but not all. With a little gold bar I think that’s an international value and you can have what you want if you give gold to someone for food/sleep somewhere everyone know value of gold now :slight_smile:
Like you can have what you want with a Rolex I think :slight_smile:

If governments get full access to money printing presses, in the past it usually ended in hyperinflation.


In times of crisis/war/… I prefer to own a little bit of a steel/food/concrete processing plant than paper money

The point is, stocks are not “USD paper”. They represent physical things (the company) just like the gold bars. They are just traded in USD because people have USD, just like you bought the gold bar with some kind of currency.

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A company with a stock at 20$ (and USD lost 50% value) go to 10$ or 30$ or keep same value for you ?
For countries with USD that’s change nothing because same value but it’s for other country they lost value invested if the value does not increase proportionally.

It will go to 40 USD minus the losses on the inventory held in USD that didn’t follow inflation (especially USD on the account of the company).

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The same thing as a gold bar. If you buy it for 100$ and the dollar loses value compared to your home currency… What happens?

The company stock from your example would go to 40$, so it stays the same value in other currencies.
(Unless the hyperinflation would cause other problems to the world economy in general…)

Could be… if the Swiss National Bank was not countering this effect by printing (physically and digitally) massive amounts of money and buying, among others, US stocks with the fake money that is created. So most likely general inflation (if and when it occurs) will affect the USD and the CHF (and of course others: EUR, GBP, …) in a similar way.

Funnily the amount of ARS (Argentina Peso) and CHF base money grow on par (at least until 2016)

More on my blog, SNB section here. NB: press release this morning: the SNB added 33 Billion more…

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Is that the right metric? Isn’t the balance sheet vastly different?

It is a coincidence, but for this chart you can use the same scale.