Apple’s share price has dropped by more than one third in recent months. Greenlight Capital wants Apple to think about new ways to return billions of dollars to shareholders. Greenlight is a hedge fund. It is a top-100 shareholder in Apple. It proposed that Apple should issue perpetual preferred stock to shareholders. This would be a simple, low-risk way to reward shareholders. It would not compromise the financial and strategic flexibility of the company.
However, Apple wants to change its legal charter so that it is prohibited from issuing perpetual preferred stock. Greenlight said it will sue.
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