Backdating?

Question

I am trying to understand what Backdating is it described in very professional terms, I don't really get it.

Apple did some backdating and I don't understand what the company really did.

Please just tell me in simply words, do not copy/paste wikipedia because I already read that.

What is the purpose of backdating and why is it even legal?

Answer 1

Backdating is just putting a wrong (older) date on a document/agreement Basicly you are saying this document was created or this agreement was concluded on this date but in reality it was written/concluded on a later day.

This allows you to use knowledge that was unavailable at the time the document appeard to be written. Which might result in a no-risk agreement. Example from real life (Apple), Steve Jobbs would get a bonus equal to the increase in the value of the shares of Apple. This agreement was dated on the day the shares had their lowest price making the maximum profit as high as possible. Apple did acknowledge the agreement was backdated and at that time it was known the shares had reached that day their lowest price.

Obviously this is fraud and a serious felony.