There is no loss of value to your shares. Its all good.Example:...

There is no loss of value to your shares. Its all good.

Example: You buy a whole pizza and you intend to eat all of it. Do you cut it in 8 pieces? 4 pieces? 16 maybe? you still own a whole pizza and will eat all the deliciousness for yourself. There is no loss of value.

In the above example the pizza is the market cap and the pieces are the shares on issue.

A company is not valued by Share Price alone! this is a common newbie misconception (i did it myself some years ago). Look at the market cap. The value of the business assigned by the market = share price x shares on issue

In regards to pros and cons:
* liquidity is reduced when the number of shares decreases. So large chunks of stock bought/sold can cause higher Share Price volatility
* the North American market find high shares on issues disgusting (for no good reason) and will avoid investment. Conversely, the aussie market generally doesn't mind high shares on share and actually think its good (for no good reason)
* if HAS wants to trade in other exchanges (like North America) then the consolidation is beneficial.
* high shares on issue (for example 1 billion + for a junior resource/development company) can be an indicator that the business has raised and burnt way too much cash for no gain in company value or progress of a project.

I am sure there are many more pros and cons that a google search can reveal. Hope the above helps. I am super keen to answer newbiew questions so ask away. This helps refine my own understanding better. thanks for the question. Also I am sure others here in the forum can maybe provide a more thorough response.