Essay Martha Stewart's Insider Trading

1085 Words5 Pages
Martha Stewart's Insider Trading

Martha Stewart, the countries top icon for homemaking has been in the eye of the public since June 2002, but not for her craftiness or culinary abilities. Stewart instead has the spotlight on her for crimes of insider trading. A tip from her former broker Peter E. Bacanovic, persuaded her into selling her IMClone stock after sharing information about a close friend of Stewart’s getting rid of his shares. Stewart’s companion, Sam Waksal, was also the chief executive of IMClone Systems Inc. IMClone Systems is a well-known company specializing in the research and development of therapies treatments of cancer. The stock selling was provoked due to a leak of information about The Food & Drug
…show more content…
The question being debated in the business field is who is to blame in this scenario, and if it is Stewart, should her punishments be so severe? Some seem to think that the charges and trails are ridiculous. “The Securities and Exchange Commission should leave people like Stewart alone and concentrate on real corporate crooks.”(Glassman). However others look at it as something that cannot be tolerated and believe that if she is not punished to the maximum, then others will not be afraid to follow in her footsteps. On the other hand there are many people that think that people who are high up on the corporate chain should be prosecuted just as hardly if not harder then regular criminals because of all their benefits from the government. As for the average high class citizen they believe that Martha should be prosecuted because they think she is wrong and giving their class of people a bad name, which black balls the whole brokerage industry as well as certain firms such as Merrill lynch. Juror of the Stewart Trail, Chappell Hartridge, says "Maybe it's a victory for the little guys who lose money in the Market because of these kinds of transactions," Or maybe its just a sigh of relief to the rest of the guys who are doing the wrong thing still and wanted to have someone else get caught in the process and are just happy that it wasn’t them. But not to play devils advocate but maybe its just the issue of having a
Get Access