Why Does Apple Care About Its Share Price?

Apple CEO Tim Cook during a meeting in Beijing in 2011 Photograph by Imaginechina via AP Images

Beset by critics and bedeviled by a declining stock price, Tim Cook, the company’s beleaguered chief executive, announced a big stock buyback and a substantial dividend increase. The market did not, however, respond by pushing up Apple’s stock price. But these actions do raise the question why Apple, which has too much cash on its books and is trying desperately to return cash to its shareholders, a company unlikely ever again to need to raise money in the public markets, should worry so much about its share price anyway?

To continue reading this article you must be a Bloomberg Professional Service Subscriber.