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Apple Stock Price

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As of march 26, 2016 the current value of the 1,000 shares of Apple stock is $105,670. The stock price for Apple 25 years ago was $2.19, for a total value of $2,190 (AAPL, n.d.). This means the 25 year return on 1,000 shares of Apple stock is 4,725%. If the EE savings bonds are sold, the payout would be $119,588, compared to the value of the bond if kept until maturity of $121,250. An advantage of selling a combination of stocks and bonds is that it allows better financial security. Keeping some stock increases the potential of substantial gains from an increase in share price and dividends, but also has a moderately high level of risk. Maintaining some money in bonds has a set rate of return, but the risk is very low. The best choice is to …show more content…

This is because of the financial principle of the time value of money. The time value of money states that a dollar received today is worth more than a dollar received at any point during the future. An advantage to accepting the shares would be the potential for increased value due to a rise in share price, or dividends being paid. A disadvantage of shares is that there is high risk associated with the shares. A market correction, poor company managements, or a host of other factors could negatively affect the share price, causing a decrease in value. An advantage of accepting the bonus is that the money can be used for a variety of purposes. Outstanding debts could be paid off, or the money could be used for other personal needs or wants such as a vacation, house upgrades, or other uses. Also, another advantage would be the bonus money could be used to invest, and could be diversified amongst different stocks, bonds, and mutual funds, and not solely reliant on the company’s stock. A disadvantage of receiving the bonus is that it is subject to income tax, unless it is put into a tax deferred plan such as an IRA. Also, the bonus has no chance of increasing in value, unless the money is invested, whereas the stock option has the potential to increase in value. The best choice is to accept the bonus cash. This money can be invested, and a …show more content…

The SEC requires that an annual report, Form 10-K,are filed. This form has detailed financial information, operating information, and managements responses to specific questions about the company’s operations. The SEC also requires that all relevant business and financial information be disclosed to potential shareholders any time new securities are being issued. Lastly, Form 3 and Form 4 must also be filed with the SEC. Form 3 is a personal statement of beneficial ownership of securities of a company, for any officer, director, or principle stockholder of a company. Form 4 is a record of any change of ownership within that company (SEC, 2016). Companies must also disclose certified financial statements, including a two-year audited balance sheet, and a three-year audited statement of income and cash flows. Furthermore, the annual reports are required to contain five years of financial data, including “net sales, income or loss from continuing operations, total assets, long-term obligations, and redeemable preferred stock, and cash dividends declared per common share” (SEC,

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