I have very little understanding of stock markets/ share prices, etc. I have done some very basic investing- just through a third party, where the actual trading is done for me by the third party, but I'm keen to find out more/ get a better understanding for how it all works.
My understanding is that the rises and falls of a company's share prices are generally tied to how well that company is performing, how profitable it is, etc (yes, I know there are more factors involved than this, but just in very general, high-level terms, for sake of simplicity).
I know that markets can be very volatile, move a lot in a short space of time, and that share prices are constantly moving.
My question is: what is the actual physical cause of a share price increasing/ decreasing?
Is it simply a supply & demand thing- the number of people buying/ selling that particular stock at a given time?
i.e. if 100 people own 10 shares each in company A, with the price of an individual share at £1, and 50 more people decide to also buy shares in company A at £1 per share, does the share price increase because of the increase in demand? Similarly, if 10 people decide to sell the shares they own in company A, does the share price decrease because of the decrease in demand?
Obviously the reasons why people decide to buy/ sell their shares will be influenced by a multitude of things- company making larger than expected profit/ loss, company involved in some scandal, increase/ decrease in demand for products company produces, widespread virus outbreaks, etc.
In short, is a company's share price all down to how attractive it appears to be to own shares in that company?
What are the factors involved in how much a share price changes? Is it just the magnitude of the event that caused the change? Or, the magnitude of increase/ decrease in demand?