Yes, your 20:1 consolidation calculation is correct.The consolidation process does not change the dollar value of your initial investment or the overall market capitalisation of the company. This is because the reduction of the number of shares held by each shareholder is reduced proportionately with a corresponding increase in the share price.
For example, if you held 100,000 shares and the share price is $0.01 per share, after the 20:1 consolidation you'll own 5,000 shares at $0.20 per share.
So, there's no real change aside from the amount of shares issued by the company. There's no real winners or losers. Just in case you were wondering, no, this is not some sort of market manipulation to benefit a selected group of shareholders.
Consolidations usually happens when a company's share price has fallen significantly. Although it does not technically make you better or worse off, the psychological aspect of a higher share price after consolidating reaffirms the idea of the company's legitimacy and may attract more potential investors.
Just my own personal view only. Opposing views welcomed.
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