Apple Computer Inc. (AAPL) has issued a warning that they might need to revise their profits dating back to 2002. The stock option scandal worsens but without providing any specifics the California based maker of iPod and Macintosh computers said it had uncovered enough evidence of mishandled stock options to raise doubts about the accuracy of financial statements dating as far back as Sept. 29, 2002, according to this Yahoo.com article.
The developments, announced several hours after the stock market closed, threaten to rattle investors, based on how Wall Street has punished other companies that have recently disclosed potential accounting problems caused by stock option improprieties.
Apple shares gained $1.43 Thursday to close at $69.59 on the Nasdaq Stock Market, then fell 6.6 percent to $65 in aftermarket trading on the electronic INET exchange. The company's market value has increased by about $55 billion since September 2002, as its stock price rose by nearly 10-fold.
More than 60 other companies across the country are grappling with similar stock option headaches, but Apple is by far the most prominent of the lot to acknowledge trouble so far.
Know More about stock options and investments at GrowYourFunds.com.
Comment Preview