Did you know that the Dow Jones Industrial Average (DJIA), commonly quoted by the Wall Street Journal (owned by the same parent company), is largely irrelevant to your financial success?
Did you know the DJIA was created by a couple of newspaper writers who never really explained how or why or what they were thinking when they chose these 30 companies?
Only thirty companies get to be part of the DJIA. It's a badge of honor to be included. The DJIA could be influenced by advertising, marketing, or other random, irrational influencers. Imagine the wining and dining going on behind the scenes. But more importantly, ask yourself, who cares?
The DJIA companies have nothing to do with you, or me, or how investment decisions are made (or ought to be). One key reason is that the DJIA is "price weighted" whereas other stock market indices are "market weighted."
Initial stock price, believe it or not, is set by management, not by investors. The market (investors) move the price around, and over long periods of time, price reflects rational estimations of value.