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Insider Trading, Martha Stewart

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I need help with the following assignment:

The Board of Directors and executive officers of a corporation have a fiduciary duty to safeguard the interests of their shareholders.

1. Why does insider trading breach that duty?
2. Research the Martha Stewart case. Do you believe that shareholder interests were jeopardized? Why or why not?
3. How has this case affected society? How has this case affected the business community?

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https://brainmass.com/economics/trade-agreements/insider-trading-martha-stewart-484387

Solution Preview

1. Insider trading is breach of fiduciary duty of board and officers to safeguard the interests of their shareholders because it is an attempt to make personal gain or prevent personal loss at the expense of others on the basis of insider information and thus, board members or officers are acting in their ...

Solution Summary

The expert examines the situation of insider trading by Martha Stewart.

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