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Technology Stocks : Dell Technologies Inc.
DELL 133.20+5.7%Nov 26 3:59 PM EST

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To: On the QT who wrote (96664)2/10/1999 4:28:00 AM
From: musea  Read Replies (2) of 176387
 
QT,

There is some evidence to suggest that stocks that split tend to outperform the overall stock market by over 4% the following year!

The stocks were probably outperforming the market before the split, no? That's a potential explanation. There is no way to tell if the unsplit stock would have done better or worse. However, it seems like the larger number of shares gives you more leverage, because stock prices move in discrete increments. Shares of Dell seem to be as volatile as they were before a split, although I have no data to support that at this point. Also the larger float might make it harder to manipulate the price, even if such a thing were possible. The psychology of stock splits is an interesting subject.

-musea
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