RE: What if9 Mar 2017 21:24
A company has 1,000,000 ordinary 1p shares and is valued at £1,000, giving each share a value of 0.1p. . The company therefore completes a 1,000 for 1 share consolidation which reduces the number of shares to 1,000 and increases the nominal value and share price to £10 and £1 per share respectively.
Each shareholder will, after the consolidation, have fewer shares but still own the same percentage of the shares.