Skip main navigation

Barclays uses cookies on this website. They help us to know a little bit about how you use our website, which improves the browsing experience– both for you and for others. They are stored locally on your computer or mobile device. To accept cookies, continue to use the website. Alternatively, go to the cookies policy for more information on how to disable cookies.


What is a Subdivision?


A Subdivision is the opposite of a Consolidation with the number of shares in issue being increased by a set ratio. In turn the nominal value of the shares and the market price per share of the shares will decrease by the same ratio.

A company will split each ordinary share into a set number of new ordinary shares, for example a shareholder may receive 5 new ordinary shares for 1 existing ordinary share. The nominal value of the shares will also be adjusted and in a 5 for 1 subdivision, if the shares were ordinary 50p shares then they would become ordinary 10p shares.

The market price per share will decrease to reflect that each share is worth a smaller part of the company. For example, before the Subdivision each ordinary 50p share might have been worth £1.00, and after the 5 for 1 subdivision they would have a value of 20 pence (subject to normal market movements).

How helpful was this answer?

Not at all Very helpful