Apple Stock Drops Following Options Article

by , 9:45 AM EST, December 28th, 2006

Apple Computer's stock dropped in early morning trading after a report in the Financial Times stated that Steve Jobs received stock options in 2001 without authorization from the board of directors. The report claims that a report showing Apple's board discussed a US$7.5 million stock option grant for the CEO was falsified.

Mr. Jobs later surrendered the options in question without exercising them, and did not receive any financial benefits from them.

The Financial Times article cites unnamed sources that are "familiar with the matter." These sources also claim that the SEC is looking into the faked document as possible evidence should the agency decide to file a case against Apple.

The news started a second day of up-and-down stock value for the iPod and Mac maker. In pre-market trading, Apple's stock dropped from yesterday's closing at $81.52 down to $78.80.

On Wednesday, Apple's stock dropped following news that the company may have falsified documents related to stock option grant backdating. By the end of the trading day, however, Apple's stock had recovered and was up a penny.

Apple stock is currently trading at $80.20, down 1.32 (1.62%).

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