What is a share consolidation?

Question

I hold a number of shares of VOD(Vodafone). I signed on to my brokerage to find the number of shares I held declined along with it's value. During my research I found this:

http://www.optionsclearing.com/market/infomemos/2006/jul/21961.pdf

The options information is not of interest to me, but the background information, found on page 2, does. I understand the part about my shares being converted to .875 new shares per share. What I don't understand is all the information that follows about "b" shares. How does this work, and what does it mean for me as an investor?

Answer 1

Generally speaking it's a reverse split, most often used to raise the price per share of a company's stock.

For example, ABC company's shares fall to .90, which could cause them to be delisted from the stock exchange. So they issue 1 new share for every 10 old shares. The total value of your shares stay the same and your percentage ownership of the company stay the same, but instead of 10 shares at .90 each, you now have 1 share at 9.00 each.

In the case of Vodafone, on July 28, for every American Depositary Share they exchanged .85 new shares, plus 10 "B" shares.

Best of success.

Answer 2

Pretty sure that you must find many financial answer at: loaninstantsolutions.us-

RE What is a share consolidation?

I hold a number of shares of VOD(Vodafone). I signed on to my brokerage to find the number of shares I held declined along with it's value. During my research I found this: ...show more