Why does Apple issue new common stock every year (even though it has enough cash)?

Question

Apple has so much cash. It really doesn’t have to raise additional capital yet every single year it issues new common stock. Why is that?

Where are you seeing Apple issuing stock? They've been issuing debt and using it to buy back stock. — D Stanley, Commented Jan 16, 2020 at 20:27
@DStanley why debt when they have so much cash? Is it because they'd have to first repatriate the cash and pay taxes on it? — RonJohn, Commented Jan 16, 2020 at 21:46
@RonJohn Partly, and partly because they can borrow money for next to nothing. — D Stanley, Commented Jan 16, 2020 at 21:51

Simon B · Accepted Answer · 2020-01-16 21:24:46Z

4

Apple offers share options as an incentive for its employees. When the employees exercise the options, the shares have to come from somewhere.

answered Jan 16, 2020 at 21:24

Simon B

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1

The question is whether Apple issues new shares to do that, or whether they buy back existing shares in order to pass out to employees.
– RonJohn
Commented Jan 16, 2020 at 21:44
3

The shares may always have existed, not released for sale but held to distribute to employees over time.
– chepner
Commented Jan 17, 2020 at 0:49
@RonJohn, I believe the stock issued to employees and the stock purchased in the buyback program are uncorrelated, although they do, of course, offset each other.
– prl
Commented Jan 18, 2020 at 17:56

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