Martha Stewart and the Stock Market

Topics: Stock market, Stock, Share Pages: 1 (263 words) Published: January 31, 2013
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 concerned at all about outcome and just went ahead with their scheme that they truly thought they could pull off without getting caught. 2. Was selling the shares illegal? If selling the shares was not illegal, was it unethical? Selling shares are not illegal; it’s all part of the stock market. However, when you have advanced knowledge like this case, it is border-line and extremely unethical. She was thinking only of herself and the profits she’d make, and not considering the company and other stockholders at all. I would go as far as calling it heartless and greedy!

3. What do we learn about long-term consequences from Ms. Stewart’s conduct and case? Having too much money can turn a person evil. Martha was a multi-billionaire, and why she cared about a couple hundred thousand is crazy. Not only did she serve jail time, lose respect and money, her stock has decreased The public now sees that she is not trustworthy, because she admitted to obstruction of justice and making false statements to federal investigators.
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