Prosecutors Reportedly Eye Apple

[SoulManX]

Apple's (AAPL - commentary - Cramer's Take - Rating) shares were dropping Wednesday after a published report said federal prosecutors are reviewing the computer maker's stock-option administration documents to see if they were intentionally falsified by company officials. The report appeared on the Web site Law.com and cited people who were familiar with the matter. The report said the documents in question were revealed through an internal probe, again citing its sources.
Apple is one of dozens of companies being investigated for the practice of backdating options. Backdating is done to make the issue date of an option appears to coincide with a low in the price of the underlying stock.
By doing so, the option holder can see profits increase, because the higher the stock moves above the option's strike price, the more money that can be made.
Shares of Apple were lately falling $2.07, or 2.5%, to $79.44. Volume was heavier than normal.
Apple said on Dec. 15 that it would delay filing its annual report in order to continue the review of its accounting for options. The company said it was working on a restatement of its past compensation expenses tied to option irregularities.
The company also said at the time that it expected to file both the annual report and its third-quarter financials within 15 days.

 

[ang_hulk]

i hope this is the bite it takes to knock them down and out,i hate that company,ipods are the only good thing to come out of them.

 

[Mr Sparkle]

ang-hulk worries me.