Definition of consolidation

In relation to equity capital, when a company reduces the number of outstanding shares by combining a number of low-value shares into one higher-value one. Basically the same as a reverse share split. In relation to the markets, when the trend is sideways, in other words the market stays roughly at the same level with small rises and falls, and turnover remains steady and not particularly high. Also, a type of merger in which a new legal entity is created. Finally, the change that occurs in an industry when a state of over-supply prompts companies to either combine operations or exit the sector.