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A case in point of a publicly traded company that has excess cash is the Apple Company.

The
company ended the year 2020 with an overwhelming amount of $195.6 billion in cash and
investments. One major high risk and quite rewarding project the firm has undertaken is the
annual launch of iPhones and iPads with Mac updates coming marginally more irregularly. The
management of the global demand/supply balance is a challenging aspect and Apple has
skillfully and successfully done this over the years. The production of the aforementioned
products herein is risky in the sense that there is no guaranteed market for the same and quite
uncertain returns on investment to be reaped by the firm and even the shareholders at large. The
input cost of production is high in terms capital, materials, labour, marketing and also shipment
to overseas countries as well as to the ever dynamic global markets with fluctuating conditions.

The shareholders and other allied stakeholders to the Tech firm stand to benefit from massive
sales of the products in terms of increased revenues/profits to the company over the years. This
owes to the current massive consumption of tech products and advancement in technology world
over to ease production, marketing and trading activities between various partners. Investor
confidence in the firm is more likely to grow as the eminent value of shares in the firm will rise
due production and release into the globally competitive market of high quality and durable tech
products (iPhones and iPads) which are up to date and conforms to the current market trends.
The firm is also set grow and more shareholding value is set to intensifify over the years.

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