How Does a Company’s Market Value Affect the Price of Its Products?

Hey guys, I'm new to this sub and wouldn't consider econ to be a strong suit of mine whatsoever, which is obviously why I'm here. I am an indie game-dev, and I'm looking to add both a stock market and a product/commodity market to my medieval fantasy rpg. My idea is that both the stock and product market will be affected by in game events such as quests, crime like theft or murder of important people, taking out a rival company, etc.

I am interested in having my market be pretty realistic, possibly with some dramatic artistic liberties. I get a little mixed up when considering supply and demand on top of this, so my question is,

How does a company's market value affect the price of its products?

Of course I understand how basic supply and demand work, but suppose a company were to mainly produce iron swords. An event happens such as the ceo of the company being murdered, the stock value of the company plummets. What happens to the value of the iron sword? My instict tells me that because stocks are low, production slows down due to decreased funds, thus the supply of iron swords drops, while the demand rises. This would increase the value of the iron sword. Is there anything I am not considering?

I know this post is kind of a mess, but I guess along with my original question I'm curious if there is anything I might not be considering. I would love an in depth explaination of how all of this ties together from a smart person, and I would also just love to learn more about this topic in general so feel free to stray away from the topic of my game, this isn't a game-dev sub after all.

Thanks!