Running an ASX company can be like owning a money printing machine. Issuing shares cheaply to a small group of individuals [a.k.a sophisticated investors] who then immediately attempt to flip their holdings for a quick profit makes some people quite wealthy. There are some traders who follow that particular action and ride on the coattails of it. It is the most common explanation for sudden price spikes on high volume in microcap companies. Almost never do the stocks maintain there high SP's... usually they crash quickly.
Those sorts of stocks are almost never genuine investment opportunities. Almost always, the whole purpose is pump and dump. The most blatant example of recent times has been the plethora of cryptocurrency offerings [which has even earned the nickname of "shitecoin" offerings].
It is a worthwhile exercise to discover who is who in the zoo... but mainly to alert oneself to where the dangers are.
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