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Financial transaction to increase the nominal value of a security without changing its share capital. Share consolidation is useful when a security has lost too much value. Thus the shareholder will hold a share at 12 euros, instead of 10 shares at 1.20 euro. The action then loses its envied status of penny stock. Indeed, penny stocks are securities trading under a few euros and evolving rapidly. The penny stock trading range means that the slightest change in the price translates into a rise or fall of several percent. This excessive volatility is sought only by a few shareholders.
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