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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 177.78-2.2%Jan 9 9:30 AM EST

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To: Voltaire who wrote (58171)12/30/1999 2:20:00 PM
From: puzzlecraft  Read Replies (1) of 152472
 
A 4x percentage loss is 4x as worse, no arguing that. But, what about probabilities? Does a stocks splitting 4 for 1 become 4x as volatile: is this what you mean by "four times the exposure" even though the capital exposure is unchanged? Perhaps you are suggesting a time decay factor for volatility after a split?

Without time decay, stocks that have split 2/1 a half dozen times (approx) since their IPO's (AOL, MSFT, CSCO, etc.) should be having 64x the volatility as initially. Obviously not the case: if you look at a long term logarithmic chart of any great growth stock, the fluctuations on a percentage basis have been rather constant over time.
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