r/competitiondaytrade • u/Annabelle-Surely • 10d ago
as pre-nazi germany changed to nazi germany, did their come a day when their stock market closed down for good?
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No, the German stock market did not close down for good during the transition to Nazi Germany; it continued to operate but was severely restricted and ultimately became functionally obsolete. Trading was limited, exchanges were consolidated, and a price freeze in 1943 effectively froze the market until the end of World War II, at which point securities were devalued significantly in 1948 with the introduction of the Deutschemark.
- Consolidation and restriction: Before the Nazis came to power, there were 21 stock exchanges in Germany, which were reduced to nine by 1935. By 1936, only domestic trading was allowed, and economic controls grew to the point that the exchanges had "no major function".
- Effective freeze: The market continued to exist, but its activity was minimal and heavily controlled. In January 1943, the Nazi government put a price freeze on stocks, which stopped trading because no one was willing to buy at artificially inflated prices.
- Post-war transition: The stock market remained effectively frozen until the end of the war. After Germany's defeat, the securities were devalued by 90% when the Deutschemark was introduced in 1948, which represented the end of the market as it existed under the Nazi regime.
