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In 2002,Martha Stewart,the Media Mogul and CEO of Martha Stewart

Question 59

Multiple Choice

In 2002,Martha Stewart,the media mogul and CEO of Martha Stewart Living was prosecuted for insider trading regarding her sale of ImClone stock.Her stock broker had informed her that Samuel Waksal,the CEO and chairman of ImClone,was selling substantial amounts of his stock in the company so she then sold her ImClone holdings.


A) since she only "saved" $45,000 by selling her stock her dealings were deemed too insignificant and the matter was not pursued
B) she was found guilty of insider trading as a tippee and went to jail
C) she claimed that she was merely acting on her brokers advice and didn't know the information provided was material and non-public so she didn't qualify as a tippee
D) she was found guilty of obstructing justice in a securities investigation and went to jail

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