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.
- Should the executives of a publicly traded company be required to report their stock transactions? Why or why not?