Why do Companies Subdivide their shares?? or Consolidate their Shares?? what is the company's advantage in doing that?? pls help...!
Why do Companies Subdivide their shares?? or Consolidate their Shares?? what is the company's advantage in doing that?? pls help...!
To make the Transferability of shares more convenient
For Example a shore holder holding 10 shares of 100 each and if his shares got sub divided into 100 shares of 10 each, now he can sell 5 sahes of 10 each, he is just transferring 5% of his holding. Previously he has to transfer min 10% as share itself 100
Same as above if the nominal value is too small they can consolidate the same
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