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
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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