Explore BrainMass
Share

Explore BrainMass

    This posting discusses Martha Stewart and insider trading.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What did Martha Stewart do wrong with regard to ImClone? Was her punishment just? What do you think should have happened?

    © BrainMass Inc. brainmass.com October 10, 2019, 2:46 am ad1c9bdddf
    https://brainmass.com/business/financial-ratios/business-martha-stewart-insider-trading-392843

    Solution Preview

    Martha Stewart received insider information about the dropping price of ImClone stock, and had her broker dump her stocks, so as not to suffer a financial loss. The problem was that since the broker knew, and notified Stewart of the situation before it was made known publicly, Stewart was found guilty of breaking insider trading laws. She sold $230,000 worth of shares of the stock, the evening before it was publicly announced.

    Stewart and her broker were both found guilty and punished. It was found that Stewart avoided a loss ...

    Solution Summary

    The solution provides a detailed discussion on Martha Stewart's actions with ImClone, and discusses if her punishment was just.

    $2.19