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yup, it's a simplisitic view of supply and demand, but u're right to say that it's what happens...
as for WHY people buy into a company, it has everything to do with the company's profitability.
The more profits they make, the more we want to invest in them, because the more likely their share price will increase. This could be in the case of big boys like the investment houses and banks wanting a large shareholder stake, or investors wanting dividends from the company's profits, etcetc. All these all result in the buying up of the company's available shares, driving up the prices ala the supply demand example that you quoted
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a vacant affair..
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