Describe how the Apple Inc. is raising funds both locally and internationally in detail with examples
Question
Describe how the Apple Inc. is raising funds both locally and internationally in detail with examples
Solution
Apple Inc., one of the world's most valuable companies, has a variety of methods for raising funds both locally and internationally. Here are some of the ways Apple Inc. has been known to raise funds:
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Issuing Stocks: Apple Inc. raises funds by issuing stocks to the public. This is done both locally and internationally. For example, Apple's initial public offering (IPO) in 1980 raised $101 million, which was a significant amount of funding at the time. Today, Apple's stocks are traded globally and are part of many investment portfolios.
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Bonds: Apple Inc. also raises funds by issuing bonds. Bonds are essentially loans that investors give to Apple, which the company promises to pay back with interest. For example, in 2020, Apple issued bonds worth $8.5 billion, with maturities ranging from three to 30 years. This was done to take advantage of low-interest rates and raise funds for general corporate purposes.
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Bank Loans: Apple Inc. can also raise funds through bank loans, both locally and internationally. While Apple has a significant amount of cash on hand, it sometimes makes financial sense to take out loans due to low-interest rates.
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Overseas Cash: Apple has a significant amount of cash stored overseas. This money can be used to fund international operations or be brought back to the U.S. to fund local operations. For example, in 2017, Apple announced plans to bring back most of its $252 billion in overseas cash, in part due to changes in U.S. tax law.
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Revenue from Sales: Finally, Apple raises a significant amount of funds from the sale of its products and services, both locally and internationally. This includes the sale of iPhones, iPads, Macs, and services like iCloud and Apple Music.
In conclusion, Apple Inc. uses a combination of issuing stocks and bonds, bank loans, overseas cash, and revenue from sales to raise funds both locally and internationally.
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