### Comment:
If you’re talking institutional money, yes, since reasonable leverage these days is in the neighborhood of 10 to 1. If you’re talking retail, reg T limits you to doubling up, so even if you assume every single person is margined to the hilt, you’re at 8% (and I’m reasonably sure the 25-1 split took margin into account). So please explain where the rest of the drop has come from?

### REPLY:
You don’t get it. Leverage has nothing to do with it. I feel like you’re thinking that if I sell $1000 worth of a stock, that stocks market cap goes down by exactly $1000. It doesn’t. The price doesn’t work like that.  
  
 For example, if someone owned 10% of the shares of a company and then decided to sell them, the stock price doesn’t simply go down by 10%. It can go down 20% or 2%. It is based on psychology and sentiment, not some kind of strict inflow/outflow formula.

### END.