It’s questionable from the facts of what happened on the morning of December 27th on whether or not Martha Stewart was guilty of insider trading or if she was just guilty of making a bad judgment call. The SEC defines insider trading as illegal to either buy or sell shares, equity shares or any class of equity shares, in any public company if you are in possession of material non-public information. It’s safe to say that Waksal was in possession of material non-public information, where the question lies is whether or not Stewart was. When approached with the information that the founder of ImClone was selling all their shares, it can mean one thing and one thing only – shit’s about to hit the fan and you want out as quickly as possible. Had Stewart not have been informed about the Waksal family selling their ImClone shares through Bacanovic, she probably would not have made a rash decision and instructed Faneuil to sell all her shares in the...
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