“Even though Steve Jobs founded and managed Apple into arguably the world’s most successful company, Tim Cook has been more than just a steward of Apple’s growth. He has been a skilled, decent and otherwise strong CEO,” Ray Hennessey reports for Entrepreneur. “Which is why it’s such a head-scratcher he’d make a blunder even penny-stock CEOs know to avoid.”
“Amid the market turmoil early today, Cook responded to an email from CNBC personality and host Jim Cramer, specifically talking about China. Fellow CNBC host Carl Quintanilla did what all good journalists would do and reported the reply,” Hennessey reports. “Trouble is, Cook’s note very likely violates Regulation Fair Disclosure (Reg FD), the Securities and Exchange Commission rule that prevents executives from publicly traded companies from disclosing business conditions to one set of investors and not others.”
“Cook clearly made a selective disclosure in his email to Cramer and gave valuable financial information,” Hennessey reports. “Regulators tend to enforce rules based on the impact the violation had. This wasn’t Tim Cook telling Jim Cramer he had Frosted Flakes for breakfast. This was indeed market-moving and gave an advantage to one Apple investor before anyone else in the world.”
Read more in the full article here.
MacDailyNews Take: Surely any sanctions will pale in comparison to the $63.384 billion in market value* that Cook’s email recouped.
*AAPL’s $103.12 close minus the $92 session low equals $11.12 per share multiplied by 5.7 billion shares outstanding or $63.384 billion.
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