2. Critical Thinking: Read and wwer the question below mark Al the end of December 2001. design Martha Stewar chuive of Mathew Living Oil, reportedly old 3.978 safe in company calle System. The expected huet entire bulling is also the lected over $27.00 for Stewart bordelling price and per what took place that daythe large by Wall Street standarde get the Tecaled that Stanlading standing relation with the chief che day beat Administration (DA) wood announce unfavorable niling Clone's owner Ets, which ens the stock plummeting from a high 15 percento only 55 34 per share in Sember 2002 of us in the two days preceding the FDA en O af byens block of shoes won $2.5 million and his other daughter along with her blod Emir Dr. Ale Page 2 are worth $300,000. Wakal was unable to complete the defalest.000 are in the company. The fact that Wakal laddated wwe die for you further complication to what was rapidly becoming very questionable now The drug was believed to hold tremendous polenta as cerem so that El-Myers Squibb bad agreed to pay $2 billion in 2001 for the right the drug prompting the increase in the store price to S70 The whole in the also affected share is Swa's After Waalwe insider trading in his cry's share the Maria Swim Id by 12 percent At the time of Wall mot Stewart, who had yet to be doing odoreda defonse to the media that she had meg tip to the sale of de suck her words she balance in order with broker det New Superchards with the comedy imider information from her friend Sun Wahl. Het further imetiste even though the cock price had fallen belowe other occasions in the mounting the sale,here was noutomaticale of the shores a Stewart had claimed to add revealed the Strahlplaced a call heroker. Per during a flight to Mexico on her private jet. She made a call to Wool during that came by cadence, Bacovie was the bear for Wakaland dan Hew hully ended by Merrill Lynch Afterms aftempts by her legal to fight herbchall. Stewart was de deliver than 1,000 pages of meching e-mail me from her preconds to the congresimal committee of her le August 2000. She was my indicout for the sale of the stock trading, but for otraustice for yng we fal planete details surrounding the transaction Se served fivement prieten Aditional met de hoone arvest. Bacova ried five them to created the sake of the stock en behalf of Statemen family, le was hanned from the securities inday and pada 575.000 de mes and Exchange Commission to settlemder-rading charge. Was himself monthpreence, and he settled the SEC insidering in him and his father Trnally. Era preved to be more persistent tham hal pel Alter rected by the FDX.2001 the basis of holy from Chance du cerved formal proval in Februar 2001. The impact on bacloprimci by July 20th yeu ater the now indan sake of Steware.cperice of lone wote apen back per share. The original and about 45.000 in bases by selling beim the FDA Retirement, the out to her company, her investors, and we will the reputation auch higher Questions 1. Identify the thesis that took place in these 2. When the contin between Close System Murth www foto peculated the wychody Laminar Dr. Aile "forced at worst to return any profit she made from selling ImClone." Does her subsequent jail sentence imply that she was targeted as a high-profile test case of insider trading? Why or why not? 3. Does the size of Stewart's transaction (3.928 shares for about S227,000) make her behavior any more or less ethical than that of Waksal's daughter who sold $2.5 million in ImClone shares at the same time as Stewart? Explain your answer. 4. What would prompt a highly regarded public figure such as Martha Stewart to obstruct the course of justice by failing to reveal the true nature of her sales transaction with the ImClone stock? 5. What do you think would have happened if Stewart had cooperated with federal investigators? 6. If Martha Stewart's sale of ImClone stock really was a high-profile test case, what message do you think it sent to other high-profile investors? 2. Critical Thinking: Read and wwer the question below mark Al the end of December 2001. design Martha Stewar chuive of Mathew Living Oil, reportedly old 3.978 safe in company calle System. The expected huet entire bulling is also the lected over $27.00 for Stewart bordelling price and per what took place that daythe large by Wall Street standarde get the Tecaled that Stanlading standing relation with the chief che day beat Administration (DA) wood announce unfavorable niling Clone's owner Ets, which ens the stock plummeting from a high 15 percento only 55 34 per share in Sember 2002 of us in the two days preceding the FDA en O af byens block of shoes won $2.5 million and his other daughter along with her blod Emir Dr. Ale Page 2 are worth $300,000. Wakal was unable to complete the defalest.000 are in the company. The fact that Wakal laddated wwe die for you further complication to what was rapidly becoming very questionable now The drug was believed to hold tremendous polenta as cerem so that El-Myers Squibb bad agreed to pay $2 billion in 2001 for the right the drug prompting the increase in the store price to S70 The whole in the also affected share is Swa's After Waalwe insider trading in his cry's share the Maria Swim Id by 12 percent At the time of Wall mot Stewart, who had yet to be doing odoreda defonse to the media that she had meg tip to the sale of de suck her words she balance in order with broker det New Superchards with the comedy imider information from her friend Sun Wahl. Het further imetiste even though the cock price had fallen belowe other occasions in the mounting the sale,here was noutomaticale of the shores a Stewart had claimed to add revealed the Strahlplaced a call heroker. Per during a flight to Mexico on her private jet. She made a call to Wool during that came by cadence, Bacovie was the bear for Wakaland dan Hew hully ended by Merrill Lynch Afterms aftempts by her legal to fight herbchall. Stewart was de deliver than 1,000 pages of meching e-mail me from her preconds to the congresimal committee of her le August 2000. She was my indicout for the sale of the stock trading, but for otraustice for yng we fal planete details surrounding the transaction Se served fivement prieten Aditional met de hoone arvest. Bacova ried five them to created the sake of the stock en behalf of Statemen family, le was hanned from the securities inday and pada 575.000 de mes and Exchange Commission to settlemder-rading charge. Was himself monthpreence, and he settled the SEC insidering in him and his father Trnally. Era preved to be more persistent tham hal pel Alter rected by the FDX.2001 the basis of holy from Chance du cerved formal proval in Februar 2001. The impact on bacloprimci by July 20th yeu ater the now indan sake of Steware.cperice of lone wote apen back per share. The original and about 45.000 in bases by selling beim the FDA Retirement, the out to her company, her investors, and we will the reputation auch higher Questions 1. Identify the thesis that took place in these 2. When the contin between Close System Murth www foto peculated the wychody Laminar Dr. Aile "forced at worst to return any profit she made from selling ImClone." Does her subsequent jail sentence imply that she was targeted as a high-profile test case of insider trading? Why or why not? 3. Does the size of Stewart's transaction (3.928 shares for about S227,000) make her behavior any more or less ethical than that of Waksal's daughter who sold $2.5 million in ImClone shares at the same time as Stewart? Explain your answer. 4. What would prompt a highly regarded public figure such as Martha Stewart to obstruct the course of justice by failing to reveal the true nature of her sales transaction with the ImClone stock? 5. What do you think would have happened if Stewart had cooperated with federal investigators? 6. If Martha Stewart's sale of ImClone stock really was a high-profile test case, what message do you think it sent to other high-profile investors