What happens to a share holder's shares in a consolidated company?

When a company undergoes consolidation, shareholders typically receive shares in the new entity based on a predetermined exchange ratio. This means their existing shares are converted into a proportional amount of shares in the consolidated company. In some cases, shareholders may also receive cash or other forms of compensation if the consolidation involves a buyout. Overall, the value and number of shares may change, but shareholders maintain an ownership stake in the new organization.