Skip to Content
scroll

Why would Thorn Group (TGA) consolidate its stock?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

The Latest Q&A

Question asked

Why would Thorn Group (TGA) consolidate its stock?

Thanks for your ongoing good advice which is certainly the best available. You will have noticed that TGA recently reduced their shareholders' number of shares to 1 for every 10 shares previously held. I can't seem to find any explanation as to why they did this and what will be the affect on those of your subscribers who hold TGA shares. Could you please enlighten us as to what's going on here.

Answer

Hi Gil,

They simply do this to make the share price seem less speculative – the price gets increased by 10x and the number of shares gets decreased by 10x – net net = neutral for shareholders.  They trade under a deferred settlement code with DA on the end for about a week then revert back to the normal code. Deferred settlement = T+3 now in most instances where normal trade in T+2. Normally the company will send out correspondence to shareholders about this via their share registry.

chart
image description
Thorn Group (TGA)
Back to top