Galectin Therapeutics Inc. (GALT)

[nsomniyak]

That is one possibility. I discussed some others in this post http://investorshub.advfn.com/boards/read_msg.aspx?message_id=103806206 on another board (you may want to read the post it is in reply to, also by me, first for context).

I agree with you - even if the index fund managers can secure most of their position through various strategies that don't bump the market price significantly (which they have a lot of incentive to do!), those shares are effectively locked away for at least a year and the "effective float" is reduced.

Sounds like you are an investor (like me) not a trader. Reducing the "effective float" in this manner is of consequence to traders, as it has the effect of amplifying swings cause by supply/demand imbalances. Investors don't really care whether the shares can be moved or not--makes no difference whatsoever to any valuation metric.