What Are Stock Consolidations? What effect does it have on the Share prices?

Stock Consolidations work just the opposite as stock splits. After a consolidation, your existing shares get reduced and depending on the number of board lots you have previously, you may have odd number of shares which you may have to call your stock-broker for them to sell it off.

Stock prices often fall back down again. Some investors sell because the stock seems more expensive than it was, even though a given holding represents the same percentage ownership of the company. Others sell because they fear the company will raise money by selling new shares, and this will drive down its stock price.

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