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Online Share Trading

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Share consolidation

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fuadh
New Contributor
Is this good or bad? If for example I hold 5000 ordinary shares and a company announces a consolidation of preference shares of 1:10 - do I lose money in this process? How does this affect the ordinary shares? Does it move to a new price, ie Current * 10? Thoughts please?
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1 REPLY 1
SimonPB
Valued Contributor
consolidation reduces numbers of shares in issue, and pushhes the price up .. leaving you net flat .. BUT most often it is penny stocks being consolidated which means they trade in the inbetweens, hence often weaker ..
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