What is a Share Consolidation and how does this affect me?


Superhero Team

July 1st 2021 3 minute read

A share consolidation reduces the number of shares a company has on issue. This causes the share price to increase proportionally, meaning that the percentage ownership and value of your investment remains the same.

Example: You own 100 ABC shares and they are valued at $1 each for a total value of $100. A 10:1 share consolidation means for every 10 shares you own you will now own 1. In addition, the value of each share will increase from $1 to $10 each.

Under a share consolidation the value of your investment will remain the same. As illustrated above, your investment value is $100 but you will own 10 shares valued at $10 each following the consolidation.

When a share consolidation occurs, the Activity tab in your Superhero Account will show:

Your ABC shares were consolidated at a 10:1 ratio.