Insider Trading Essay

Watching Martha, Inc. The Story of Martha Stewart finally made me fix what the whole scandal of Martha Stewart was all about. From what I learned, Martha Stewart, known as a television personality and famous multimillionaire, was indicted on securities fraud, obstruction of justice and camarilla charges in an insider trading scandal. Before this all started, she was happily bake cookies for children and making homemade arts and crafts for her friends. At the middle of 2003, she was sent for a five month term of prison. Insider trading was the crime Martha Stewart committed she essentially wanted to get ahead as CEO of her ships company.By definition, insider training is the bootleg practice of trading on the stock exchange to ones advantage done having access to confidential instruction. Insider trading is a term that around investors would usually associate with illegal conduct. Illegal insider trading refers to buying or selling a security while in possession of private information about the security. Apparently, found on articles I dumbfound read, Martha Stewart was told by her friend Sam Waksal that his company ImClones cancer drug had been rejected by the Food and Drug Administration before this information was made unrestricted.Because of this, the price of his companys stock diminished quickly. The (Securities and Exchange Commission) SECs job is to catch up with sure that all investors are making decisions based on the same information. Insider trading can be illegal because it destroys this level playing field. Insider trading is only illegal when a person bases their mete out of stocks in a public company on information that the public does not know. Clearly, Martha Stewart was a huge symbol of corporate greed. She wanted more(prenominal) money even when she had reached one billion dollars as her net worth.Stewart had anomic about $400 million because of the companys declining value, legal fees and lost business opportunities. To m ake a comeback, she made a camp again in 2005 which take to profits a year later. Stewart then rejoined the board of directors and became chairman of her namesake company again this year. She hasnt reached her full potential from before but is still catch up to it. (Sentences in quotes are from several Internet sources. No procure infringement intended. )