Case Study 2
The Trial of Martha Stewart
The Central Issue:
Do Martha Stewart commit the crime of insider trading when she sold the ImClone
Recommended Course of Action:
Martha Stewart would commit the crime of insider trading when the lady sold her shares
for ImClone. She should'nt have sold her shares the moment she was told which the rate of
ImClone's shares is going to drop since it was an internal news any time FDA's
disapproval of the drug ImClone's shares will drop substantially.
Essentials of Advice:
1 . Martha Stewart was well aware that she's undertaking insider trading, she
tried to cover her crime, she acquired meetings with Bacanovic and Faneuille to
speak about how to stick with their 1st statement, This added to the severeness of
this crime and shows that these people were all in this kind of together and Martha understood that she
was doing a thing illegal and felt the need to cover up the facts.
Case Study 2
2 . Martha Stewart tried out changing the written text of Bacanovic's message however she
didn't get it done, This demonstrates that Martha Stewart knew that she's in to something against the law
and had a clear concept of what she actually is doing is not proper. She should have listened to
her intuition at that time and should've opened up right away
1 ) One of the alternatives is that Martha Stewart would have bribed both equally Bacanovic
and Faneuil and advised them not to leak the information about the crime. This
alternative is refused because it is not ethical.
installment payments on your Another substitute is that Martha Stewart could've put all the responsibility on her
broker and should've check out the point that she experienced no idea that which was going on.
This is declined because brokerages don't have power to make this kind of big decisions
and there was resistant in kind of Bacanovic's meaning which this individual left intended for Martha upon
January 27, 2001 and told her that there's a thing going on with ImClone...