Question

The ImClone Case In the ImClone case, Martha Stewart was convicted of lying to investigators (obstruction...

The ImClone Case

In the ImClone case, Martha Stewart was convicted of lying to investigators (obstruction of justice and perjury) and also charged with securities fraud for selling stock of a company called ImClone.

Based on your understanding of the ImClone case, answer the following questions:

Why did this case come to the attention of the SEC?

What were the specific crimes involved in this case?

Should Stewart have been prosecuted? Why or why not?

Did being famous make things better or worse for her?

Based on your study on stock answer the following questions:

What are some of the factors that can make the price of a company’s stock increase or decrease?

Do you own any stock? If yes, then what were the factors that influenced your decision to buy shares in a particular company? If not, what factors would you consider when buying shares?

Note: You do not have to reveal which shares you own or any other personal information.

Are the executives of a publicly traded company required to report their stock transactions? Why or why not?

Homework Answers

Answer #1

Ans. The case came before the SEC because a huge amount of the stocks were sold which were mainly held by the founder and his family member and friends just before the stock fell drastically over a negative news for the company that was its colon cancer drug named erbitux will be rejected by the FDA.

The main crime was of insider trading that is the founder acted on the material non-public information.Other chares include bank fraud,obstruction of justice and tax evasion.

Yes she should have been prosecuted,its every citizen's right.

It has nothing to do with being famous ,she did a crime of insider's trading and she got sentenced for the same.

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