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An investor owns 5 000 IBM shares, with a market value of R230 per share. IBM...

An investor owns 5 000 IBM shares, with a market value of R230 per share. IBM announces a 1-for-5 consolidation. How many IBM shares will the investor own after the consolidation?

1 000

25 000

833

26 000

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Answer #1

The IBM shares that the investor own after the consolidation will be as follows:

= 5,000 / 5

= 1000

Hence the correct answer will be option of 1,000

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