Despite the increasing popularity of the iPhone and iPad over the past few years, some business experts say that this will mean little at this year' annual shareholder's meeting. Because despite tentative consumer growth, Apple stock has dropped by 14 percent since last year's gathering, leaving some investors to wonder what the future holds.
Experts say that it's not the uncertainty of the future with Apple that many investors are worried about though. Their concern has more to do with the money Apple accumulates each year that investors feel they are not getting a large enough slice of.
Shareholders have long voiced that there are not enough ways for Apple to share their wealth with investors. It's because of this tension that led the founder of Greenlight Capital Inc to sue Apple in an effort to push the company to create a new class of dividend-paying preferred stock. And although not all shareholders support the extent taken against Apple, they do however applaud the tactics.
To take all concerns into consideration, Apple has agreed to take questions from investors at the shareholder's meeting. And although the company feels that it's handling its surplus of cash responsibly, it also recognizes that shareholders may not be as patient when stocks are falling as they have been in the past.
When dealing with investment situations such as this, it's important for business owners and executives to remember that there is a fine line between keeping your investors happy and making good business decisions. Sometimes this line isn't always clear and it is at this point that it's well worth talking to legal representation.
Source: The Bloomberg, "Apple CEO to Face Investors Seeking More of Cash Hoard," Adam Satariano, Feb. 26, 2013