The stock market is generally driven by supply and demand, just as every other market is. As soon as the stock is acquired, its purchase price becomes the new market price.ses, the greater the demand for a stock, the higher the price is driven, and vice versa. When the supply of a stock is greater, the price is driven higher, and the reverse is also true. Although a stock's initial public offering (IPO) price is equal to its projected future dividend payments in principle, the price of the stock changes depending on supply and demand. Supply and demand, and therefore a company's stock price, are influenced by a number of market variables.