One additional thought; I looked up the definition of liquidity and it does not mention the number of shares as being a factor, only that it's the turnover of shares that creates liquidity. So if you could sell a share for $10 and then immediately buy it back for $10 then the stock would be perfectly liquid. I think we have all seen that to buy and sell at any price, the way the spread is normally, would be impossible.

With a low float, and the circumstances surrounding POET, many investors are holding tight waiting for the payoff. Sure, there are some trading it and that provides for the day traders amongst us, but it does take away from liquidity.

As the share price rises there will be more sellers so the turnover will be higher, but will the new buyers be holding for their share of the pie (which is often the case)? If so, there will be no increase in liquidity, or relatively little.

It's a complex term with a lot of factors underlying it, but I think that sums it up.