Free float is the number of shares held by public. A company can issue 10 million shares but the owners can hold 7 million shares. Hence, the float will be 3 million shares or 30%. This is the true number of shares available for the public to trade. The company owners are unlikely to sell their shares, hence, the float can be considered as the supply side of the company shares. Fundamental economics will tell you that price is where demand meets supply. With supply fixed, the only way for price to rise is for demand to increase.
Demand is likely to increase tremendously in the final phase of bull run. Everyone is pouring their money into the market and snatching shares at whatever price they can get. Logically, a company with a smaller float would have less supply in the market. Hence, a slight increase in demand would push ......