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Is CONSOLIDATION the correct term for this?

Discussion in 'Beginner's Lounge' started by TiminOz, Jan 13, 2019.

  1. TiminOz

    TiminOz

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    Last edited: Jan 13, 2019
  2. cynic

    cynic

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    Correct!
     
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  3. peter2

    peter2

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    Yes, the ASX uses the word consolidation, while the US uses the term "reverse split".
    I've included notes about a recent consolidation in SEA as an example.
    seacons.PNG
    A consolidation of this type does not destroy share holder value.
    seacons2.PNG
    Some investment firms have policies that prevent them from investing in companies with a low (<0.10) share price. A consolidation of this type removes that concern.

    There was another recent consolidation of this type in EHL.
     
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  4. TiminOz

    TiminOz

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    Thanks for the doc!
    I'll have a read !

    This is the very first bit of research/learning I'm ever doing ! :)
     
  5. TiminOz

    TiminOz

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    QUESTIONS if anyone cares to answer:

    1. Do they always give such a long notice period (about six months) before they 'consolidate'?
    2. What is ' trading on a (post-consol) DEFERRED SETTLEMENT BASIS'?
    Someone on ASF said: "When a company is trading in "deferred settlement" the T+3 period no longer applies", but didn't say HOW it no longer applies.
    Do you get longer? Less? None at all?

    https://www.aussiestockforums.com/attachments/seacons-png.91322/
     
  6. TiminOz

    TiminOz

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    In the UK a consolidation is called a
    REVERSE SCRIP
    There's also a SCRIP

    (For others in future)
     
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