Royal Nickel Corp. RNKLF

RE:RNC Market Cap and Stock price...

[marben100]

opjohn1,

In very simple terms share prices and hence market caps. are set by the market (that's why it's called "market capitalisation"). If buyers are more aggressive than sellers then the price will rise and if the converse is true it will fall.

If the company comes out with announcement that justifies a higher price then I, for one would be a buyer as, I'm sure, would many others. That would cause the price to rise until enough shareholders decide it's time to sell (or the buyers aren't prepared to pay any more) and the buying demand is satisfied.

There are a lot of subtleties around this, including the actions of market makers and other traders, but that describes the basic price setting mechanism. The share price is essentially "crowdsourced".

Don't expect the scale of the find to be mapped out this month, though. It will take a lot longer than that. However we would hope that RNC will be able to announce more recovered oz this month, which would be encouraging for the market, if enough is recovered.

Cheers,
Mark