Martha Stewart Living Omnimedia
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 rivals on the sentencing date. The sentence that was ‘good’ news for Martha was also ‘bad’ news for her competitors on the sentencing date.
In the two and a half years since her release from Alderson Federal Prison Camp in West Virginia, …show more content…
Stewart had no criminal history, placing her in Criminal History Category I, for a guideline range of zero to sixteen months imprisonment.'' Despite the government's recommendation that Stewart be sentenced at the high end of the guideline range, Judge Cedarbaum sentenced Stewart to the minimum sentence of imprisonment, ten months, with five months to be served in prison and five months' community confinement, two years' supervised release, and a $30,000 fine (Chatham, 2007). It is obvious in this case that Martha had to of been alerted about the ImClone stock since she was good friends of Dr. Waksal. When it became clear that she might also be under investigation for selling her ImClone shares then she immediately sold her own shares in Martha Stewart Living Omnimedia Inc. thinking that the stock prices would fall once word got out. This shows unintentional amoral management. Martha did not think about the business activity in ethical terms. She just reacted like any other human being would in this situation. Or she could have been telling the truth about selling the stock if got to $60 and below. It is all circumstantial. In reading about this case I did not see where there was hard evidence of insider
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 rivals on the sentencing date. The sentence that was ‘good’ news for Martha was also ‘bad’ news for her competitors on the sentencing date.
In the two and a half years since her release from Alderson Federal Prison Camp in West Virginia, …show more content…
Stewart had no criminal history, placing her in Criminal History Category I, for a guideline range of zero to sixteen months imprisonment.'' Despite the government's recommendation that Stewart be sentenced at the high end of the guideline range, Judge Cedarbaum sentenced Stewart to the minimum sentence of imprisonment, ten months, with five months to be served in prison and five months' community confinement, two years' supervised release, and a $30,000 fine (Chatham, 2007). It is obvious in this case that Martha had to of been alerted about the ImClone stock since she was good friends of Dr. Waksal. When it became clear that she might also be under investigation for selling her ImClone shares then she immediately sold her own shares in Martha Stewart Living Omnimedia Inc. thinking that the stock prices would fall once word got out. This shows unintentional amoral management. Martha did not think about the business activity in ethical terms. She just reacted like any other human being would in this situation. Or she could have been telling the truth about selling the stock if got to $60 and below. It is all circumstantial. In reading about this case I did not see where there was hard evidence of insider