IBM stocks flutter on news of probe
The Securities & Exchange Commissions probe into the accounting practices at computer giant IBM has had an adverse effect on its share price.
Yesterday the company’s share price fell by 4% to $83.32 after it became known that the SEC investigation was focused on IBM’s revenue recognition practices in 2000 and 2001, and how it dealt with ‘certain types of customer transactions’.
Early morning trading in New York today has seen the share price recover some lost ground though, climbing to $84.80.
A spokesman for IBM said yesterday: ‘IBM believes that the investigation arises from a separate investigation by the SEC of a customer of IBM’s Retail Store Solutions unit. This unit markets and sells point-of-sale products.’