Changes in share quantity

Why do I have more or fewer shares than expected?

This usually happens as a result of a corporate action – a company-initiated event that affects all shareholders and can change the number of shares you hold. These events are typically mandatory and can apply across both the ASX and Wall St.

While your share quantity may change, the total value of your investment generally remains the same immediately after the event.

Common reasons for more shares (or a lower share price):

Corporate action	What it is	Impact on your holding
Stock split	The company divides each existing share into multiple new shares to lower the stock price.	You receive more shares at a proportionally lower price. Your total value stays the same.
Bonus issue / stock dividend	New shares are issued free to existing shareholders, usually at a fixed ratio (e.g. 1 for 10).	You receive extra shares. The share price typically adjusts to reflect the larger supply.
Rights issue / entitlement offer	Shareholders can buy additional shares at a discounted price.	If you take part, your share count increases by the number of shares you purchase.
Dividend reinvestment plan (DRP)	Dividends are automatically used to buy more shares instead of receiving cash.	Your share count increases based on dividend value and DRP pricing.

 

 

 

Common reasons for fewer shares (or a higher share price):

Corporate action	What it is	Impact on your holding
Reverse stock split / share consolidation	The company combines existing shares into fewer new ones, often to prevent delisting from the exchange.	You hold fewer shares, but each is worth more. Your total value remains unchanged.
Merger or acquisition (M&A)	Your company is acquired and shares are exchanged under new terms.	Your old shares are replaced with shares (or shares plus cash) in the new company.

 

 

What to do next

These actions are typically automatic – but to stay informed and confident in your portfolio, you can:

• Visit the company’s investor relations page
  For more detail, check the company’s announcements on the ASX. For U.S. companies, visit the SEC’s EDGAR database.

• Verify your total value
  Even if your share count changes, the total value of your investment should stay the same. For example, 100 shares at $1 becoming 10 shares at $10 still equals $100. You can compare your holding value before and after the corporate action to confirm this.