Putting it simple11 Oct 2015 19:02
We know that there is (although limited) number of stock in a free float. If I want to buy a certain number of shares it's only a matter of price I want to pay and price another PI want to sell at. Why did the sp go up so quickly to nearly 30p not so long ago? The same mechanism. Moreover if there is less shares in a free float and demand continues the sp should rise at an increased pace. It's like in everyday life. Less goods in the market and lots of buyers ("competitors" in buying process)- you have to be ready to pay more than someone else to get it. At least that's how I see it.