What does "consolidation of shares" mean? - Aussie Stock Forums

Results 1 to 2 of 2
  1. #1

    Default What does "consolidation of shares" mean?

    Hi all

    Could someone please tell me what consolidation of shares mean. I am referring to NIA (Niagara Mining) that indicated this recently.

    How does it effect existing shares held and how are the future shares bought.

    I believe the consolidation is 2:1


  2. #2

    Default Re: Consolidation

    Do not know about HIA in particular, however, a consolidation just reduces the number of shares on issue by a specified ratio and changes the par value to leave the company book value the same.

    In a 2:1 consolidation, if you owned, for example, 2000 shares, your share holding would reduce to 1000 post consolidation.

    All cases behave slightly differently, however in theory the market price would double and the value of your stay the same.

Similar Threads

  1. Share Consolidation: Kiss of Death?
    By burglar in forum Beginner's Lounge
    Replies: 5
    Last Post: 17th-July-2012, 10:02 PM
  2. Does Retail Consolidation Reduce Our Choices?
    By roland in forum General Chat
    Replies: 16
    Last Post: 8th-September-2010, 01:06 PM
  3. FPO/Partly-paid shares/Preference shares?
    By tugga in forum Beginner's Lounge
    Replies: 2
    Last Post: 5th-February-2008, 08:20 PM
  4. Consolidation of shares
    By Fool in forum ASX Stock Chat
    Replies: 3
    Last Post: 28th-June-2007, 10:47 PM
  5. Share Consolidation.... Good or Bad?
    By amohonour in forum Beginner's Lounge
    Replies: 13
    Last Post: 3rd-November-2005, 04:17 PM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Aussie Stock Forums