Dumb question about stocks

[tech/a]

OK, fair enough. I see where you're coming from now that you've cleared up that point.

We were on the same page Michael

 

[CanOz]

In responding to the OP's question we should be discussing risk per trade when using leverage.

As long as the maximum quantity of shares to be purchased is calculated using only the investors equity then the risk per trade will not increase by introducing leverage.

The OP's suggestion that equity ($100k) + leverage ($400k) be used to buy as many shares as possible for $26 will result in an additional 15384 shares being purchased.
A fall of $6.50 per share will wipe out the equity.

N.B.
No allowance for interest or brokerage.

Exactly...well said.