Securities markets are simply auctions. Buyers (bidders) and sellers (offerings) compete to obtain the best price.
The market comprises the highest bidder and the lowest offering. If some wants to come in and buy, they will have to take the lowest offering price, if some wants to sell, they take the highest bidders price. In an active market, the bids and offerings change within seconds.
There is only one factor that drives prices higher - buyers, If there are no buyers, the price of the stock will not rise and in reality it will fall. Also, if there are only sellers, the price of the stock will drop until buyers come showing an interest in doing so.
A company's products and/or service DO NOT directly affect the price of their security. A company can have the greatest products in the world or show tremendous profits and if there are no buyers the price of the stock will go no where.
So too, there are companies will no profits or crappy products and the price of their stock is relatively high, this is do to the fact that there are buyers out there willing to take a chance.
45+ years on The Street