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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?
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 ..