Abstract This case analysis offers facts and opinions about Martha Stewart committing insider trading. It will examine how Martha knew about ImClone stock dropping and how she uethically spiraled out control. Severel articles will be used to support how Martha was sentenced and This study notes that the light sentence for insider trading that resulted in a nearly 37% gain for Martha Stewart Living Omnimedia‚ Inc. also may have been responsible for a small but significant average loss for industry
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THE TALE OF TWO MARTHAS "I ’ll be back .I ’m not afraid. Not afraid whatsoever. I ’m very sorry it had to come to this." (Gasparino‚ 22). Those were the words that Martha Stewart said on the courthouse steps on July 16‚ 2004‚ as she had just been sentenced to five months in prison. A defiant Martha Stewart was trying to instill confidence in her stock holders and save a sinking ship‚ her company‚ Martha Stewart Living Omnimedia Incorporated (MSO). That day her companies stock closed at $
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no. 1-0083 Martha Stewart and the ImClone Scandal On January 20‚ 2004‚ jury selection launched the trial of Martha Stewart‚ Chief Creative Officer and former Chief Executive Officer and Chairman of the Board of Martha Stewart Living Omnimedia (MSO). Nine charges filed by the Federal Grand Jury in New York and the SEC relate to Stewart’s personal sale of $228‚000 in ImClone Systems‚ Inc. stock on December 27‚ 2001‚ one day before regulators rejected the biotech company’s cancer drug (Erbitux)
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On August 3rd‚ 1941‚ Martha and Edward Kostyra gave birth to Martha Stewart. Martha was the second born out of six kids and was born in Jersey City‚ New Jersey. Here is her story of how she became one of the great business leaders. Growing up‚ Stuart’s father had made sure that from a young age the children would be taught the value of self-sufficiency. With this‚ the Kostyra children had to do various household chores. From this‚ Stewart learned how to cook‚ sew‚ and garden. From the
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In June of 2003‚ Martha Stewart was indicted on several criminal and civil counts from the U.S. Securities and Exchange Commission (SEC) . Without consideration of the verdict‚ the question remains; Did Martha Stewart‚ as CEO‚ act responsibly? Even though she was found guilty on all four counts against her‚ she could still be considered to have acted ethically. To determine the responsibility and ethics of her actions‚ the specifics of the case will be applied to a process to determine both the utility
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Case 6.10 – Martha Stewart: Not Such a Good Thing 1. What issues did Martha Stewart‚ Bacanovic‚ and Faneuil miss in making their decisions about selling the ImClone stock in their conduct following the sales? Apply the models and make a list of suggested questions they could have asked that might have affected their decisions. I do not feel any of them were thinking about any consequences! Why was this small amount of money so important to them‚ especially Ms. Stewart‚ who was a multi-
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Martha Steward Living Omnimedia Inc. Case Discussion Questions 1. Provide a concise company profile. (I.e.‚ what does your client do to stay in business? What industry is your client in?) Martha Stewart Living Omnimedia‚ Inc. creates original how-to content and related products for homemakers and other consumers. The Company markets its brand name across a broad range of media and retail outlets. Martha Stewart provides information on a variety of subjects including home‚ cooking and entertaining
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1. What issues did Martha Stewart‚ Bacanovic‚ and Faneuil miss in making their decisions about selling the ImClone stock in their conduct following the sales? Apply the models and make a list of suggested questions they could have asked that might have affected their decisions. I do not feel any of them were thinking about any consequences! Why was this small amount of money so important to them‚ especially Ms. Stewart‚ who was a multi- billionaire at the time? It is clear that they weren’t
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directors. On December 27‚ 2001‚ she became engaged in the ImClone insider trading issue when her friend Sam Waksal informed her that his company ImClone’s cancer drug was rejected by the FDA. She had her broker sell her 4‚000 shares valuing $230‚ before the news hit and later found guilty of insider trading. According to the Daniel Fund Ethics Initiative at the University of New Mexico‚ the charges of securities fraud against Stewart were dropped but she served five months in prison and five months on
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Martha Case 1. What was the basis of Martha Stewart’s reputation? In term of financial reputation‚ it will be on market share and stock price. 2. Why did MSO’s stock price decline due to Martha Stewart’s loss of reputation? Due to Martha’s fame and recognition of her show‚ many people therefore invested their money in the company. However‚ when Martha was accuse for insider trading which has went against her credibility‚ investor start to pull out from stock by selling away their stock
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