Why would a company participate in a share consolidation?
Paladin Energy Ltd (ASX:PDN) has recently announced a share consolidation where current shareholders will see ten existing shares become one. This change will increase the share price ten times. We discuss reasons why a company might choose to complete a share consolidation, also known as a reverse stock. Share Price Management: One of the most common reasons for a share consolidation is to increase the company’s stock price. This can make the stock more attractive to institutional investors and may …
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