Is CONSOLIDATION the correct term for this?

TiminOz · 13 January 2019

Someone posted about a 'share consolidation' here:
https://www.aussiestockforums.com/threads/po3-purifloh-limited.21441/#post-1007102

But I can't find equivalent mention of it in Investopedia or in a couple of books.

Is there another term I can google?

(E.g is it related to a stock SPLIT? Maybe it's a REVERSE SPLIT?)

cynic · 13 January 2019

...Maybe it's a REVERSE SPLIT?)

Correct!

peter2 · 13 January 2019

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.

A consolidation of this type does not destroy share holder value.

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.

TiminOz · 14 January 2019

peter2 said:
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.
View attachment 91322
A consolidation of this type does not destroy share holder value.
View attachment 91323
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.

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

This is the very first bit of research/learning I'm ever doing !

TiminOz · 14 January 2019

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/

TiminOz · 14 January 2019

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

(For others in future)

Is CONSOLIDATION the correct term for this?

TiminOz

cynic

peter2

TiminOz

TiminOz

TiminOz

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