What are Consolidations?
A. Consolidation is the opposite of a share split. It involves the consolidation of a company’s shares into a smaller number of shares, each with a correspondingly higher market value. Once again, the total value of any investor’s holding is not affected by the consolidation. Companies may choose to do this if the share price is relatively low. As with share splits, the intention is to make the shares more liquid or easily tradable. Companies may also do this to reduce their cost of raising new capital.
