The SEC has more than 80 investigations under way to determine if companies illegally manipulated the prices of stock options given to executives. At least one company has fired an executive as a result of a probe into stock options practices. And the former chief executive of Brocade Communications Systems Inc. has been charged with criminal fraud over stock option grants.

Recently reported by Reuter (5/8/06), Apple Computer has disclosed irregularities on June 29, saying it was conducting an internal probe and had hired an independent counsel to conduct its own investigation. It has also notified the U.S. Securities & Exchange Commission.”

Apple expects to restate previous results after finding more irregularities in its stock options accounting, prompting investor concerns that key executives might be forced to resign. It expects to restate results to record non-cash charges for compensation expense relating to stock options granted from 1997 to 2001. However, it had not yet determined the size of the charges, tax and accounting impacts,

Analysts believed that Apple’s forward-view of fundamentals remain intact despite this announcement. They believed the worst off scenario is the paying of a penalty which is peanut compared to what Apple presently has in its cash coffers of US9.2 billions.

Apple shares closed down $1.29, or 1.9 percent, at $68.30, after falling as low as $64.96 earlier.