| Understanding Share Consolidation |
| What is Consolidation of Shares? |
| Consolidation of shares is a strategic move where companies reduce the number of outstanding shares by merging them and simultaneously increasing the face value of each share. This results in a decrease in the total number of outstanding shares, while the value of each individual share sees an increase. |
| Why Do Companies Consolidate Shares? |
| Companies choose to consolidate shares for various reasons, with a common motive being the desire to boost the per-share value of the stock. By reducing the total number of outstanding shares and increasing the value of each share, companies can make their shares more attractive to investors. |
| Another motivation for consolidating shares is to meet the requirements for listing on the stock exchange. Some stock exchanges have a minimum price threshold for listed stocks, and companies may opt for share consolidation to comply with these requirements. |
| For a more in-depth understanding of share consolidation and its implications. |
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