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.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Case: Superconductor Technologies, Inc. This case describes the compensation and incentive plans used by a high-technology...
Case: Superconductor Technologies, Inc. This case describes the compensation and incentive plans used by a high-technology company for its top-30 managers. The company is unusual in that it has been in business for 17 years, yet has never earned a profit. As such, it can still be viewed as a start-up company, but a mature one. The compensation packages consist of base salary, cash bonuses, and stock options. The case provides opportunities to discuss issues, such as measurements, style of...
Although stocks and bonds may both be viewed as investment opportunities, there are major differences between...
Although stocks and bonds may both be viewed as investment opportunities, there are major differences between these two. Stock represents capital, the financial investment or equity, in a corporation. In a publicly traded corporation, individuals and groups buy and own shares of stock in the company. Shares of stock are traded (bought and sold) on one of the stock exchanges. For example, you might buy shares of stock in Coca-Cola, a publicly traded company. Publicly traded companies are very different...
Tootsie Roll Annual Report Analysis The purpose of this is to explore the information contained in...
Tootsie Roll Annual Report Analysis The purpose of this is to explore the information contained in a company's annual report. Any company which is publicly traded is required to make their annual financial statements available to any interested party. In this case, that's you! In general, the best place to locate this information is on the company's website. Look for a link about Investor Relations, Corporate Information, or other similar labeled areas. The company you will be analyzing is Tootsie...
Case Analysis 1: You work for a small, local telecommunications company. In five years, the company...
Case Analysis 1: You work for a small, local telecommunications company. In five years, the company plans to undertake a major upgrade to its servers and other IT infrastructure. Management estimates that it will need up to $450,000 to cover all related costs; however, as a fairly young company, the goal is to pay for the upgrade with cash and not to take out loans. Right now, you have $300,000 in a bank account established for Capital Investments. This account...
Read Case #1 entitled “Understanding Your Employee Benefits: Executive Compensation in a Corporation” on page 308...
Read Case #1 entitled “Understanding Your Employee Benefits: Executive Compensation in a Corporation” on page 308 in your text and answer these case questions: What is the purpose of the platinum parachute? Why would the company provide this benefit? How does it compare to the golden parachute? Why does the company offer an incentive stock option plan? What other protections are in place for the shareholders and employees relative to executive compensation in organizations? After 15 years working at a...
Case Study Big Data Stewart Clegg Radically changing your business due to disruptive innovation requires a...
Case Study Big Data Stewart Clegg Radically changing your business due to disruptive innovation requires a different approach. When dealing with disruptive innovation, the alignment and/or realignment of an organization’s assets might not be enough to sustain competitive advantage. When newcomers use the latest technology to disrupt an entire industry, the incumbents will need to take drastic measures to change their organization. The emergence of strategies driven by Big Data means a transition to a data-driven, information-centric organization consisting of...
CRITICAL THINKING QUESTION Please read the case study below on the differences between equity and liabilities....
CRITICAL THINKING QUESTION Please read the case study below on the differences between equity and liabilities. Decide whether the Class A common (ie. ordinary) shares may be disclosed as part of shareholders’ equity. Explain the application of relevant passages from AASB 132 and the Conceptual Framework to the Class A Common Shares, making specific connections between wording in in the standards and framework with the features of the shares. Using the AREA framework, do you agree or disagree with the...
Case: You have recently been hired as an OR nurse at Community Hospital. Recently divorced and...
Case: You have recently been hired as an OR nurse at Community Hospital. Recently divorced and the mother of two very small children, you were thrilled and relieved to get a job with these hours at the only hospital in this small mid-western city. However, on your second day, you are confronted with an unusual situation. A 35-year-old woman is scheduled to undergo the surgical removal of a benign uterine tumor. While preparing for surgery, you discover that the two...
CASE JB Hi-Fi unapologetic on profit downgrade By Eli Breenblat 8 May 2018 Consumer electronics giant...
CASE JB Hi-Fi unapologetic on profit downgrade By Eli Breenblat 8 May 2018 Consumer electronics giant JB Hi-Fi is sticking by its reasoning for releasing a profit downgrade buried deep within a presentation to analysts last week, rather than make a stand-alone statement to the stock exchange. This follows being hit with a “please explain” by the ASX (Australian Stock Exchange) in the wake of the earnings warning that sent its shares plummeting. JB Hi-Fi yesterday issued its response to...
Case Study 2 Fred’s Miracle Cough Syrup has hit the market and become a huge success...
Case Study 2 Fred’s Miracle Cough Syrup has hit the market and become a huge success with the burgeoning integrative medicine demographic. Per your advice, Fred has patented his famous concoction and trademarked the Fred’s Miracle Cough Syrup name and logo. Demand is so high that Fred and Sally are working full-time on the business. Their children, Sam and Lilly, and their respective spouses, Jane and Tim, have joined the company full-time as well. In fact, Fred and Sally have...