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The Insider Trading: The Case Of Martha Stewart

813 Words4 Pages

From baking cookies to behind bars, Martha Stewart, the world’s most famous home decorator added her name to the long list of celebrity jailbirds in 2004. Stewart was investigated and tried for insider trading along with other charges such as, obstruction and conspiracy. The TV personality’s case was followed religiously by the press and is easily one of the most famed insider trading scandals. Stewart was convicted on obstruction and conspiracy in 2004 and sentenced to a five-month stay in a federal prison. Celebrities going to jail are not a new thing in today’s media and world; however, it was a shock that Martha Stewart, who is America’s ideal housewife, was tried for something as unethical as insider trading. Martha Stewart is an American entrepreneur and television personality, known for her multitude of shows on PBS and CreateTV. She has branded her self as a home …show more content…

In September 1997, with the assistance of a business partner, Stewart was able to secure funding to consolidate her ventures related to the Martha Stewart brand into a new company, named Martha Stewart Living Omnimedia. Stewart served as the chairman, president, and CEO of the new company. In 1999, Martha Stewart Living Omnimedia made its debut on the New York Stock Exchange initially asking $18 per share but by the end of trading it had rocketed to $ 38 a share. Martha Stewart Living Omnimedia’s

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