At Apple's last earnings call earlier this April, the company announced that it would be massively expanding a program to buy back stock, authorizing an additional $50 billion for a total of $60 billion in its buyback program. Despite near-continuous record-breaking growth, Apple's stock has suffered in recent months, with shareholders unhappy about what they see as declining momentum and insufficient dividends. In September, Apple was trading at around $700; early this year, it dipped below $500 and has stayed there ever since.
By buying up shares, though, Apple can help raise the overall stock price by making the remaining ones more valuable. Counterintuitively, though, the company isn't funding that buyback with its massive pile of...
via The Verge - All Posts http://www.theverge.com/apple/2013/4/30/4286340/apple-nears-bond-deal-for-share-buyback-expansion
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