In reference to the Martha Stewart case Do you believe that

In reference to the Martha Stewart case. Do you believe that shareholder interests were jeopardized? Why or why not? How has this case affected society? How has this case affected the business community?

Solution

Please read completely it look so much time to get the information……

Do you believe that shareholder interests were jeopardized? Why or why not?

Based on the issues raised, it is at least debatable that insider trading is unethical and should be illegal. What is not debatable is that it is currently illegal and therefore any executive is ethically bound by the shareholders and society to follow the law

Ms. Stewart sold the stock because the price went below $60, as previously arranged with her then-Merrill Lynch stockbroker and co-defendant Peter Bacanovic. The government says she sold it because she was illegitimately tipped off that ImClone CEO and friend Samuel Waksal was unloading his stock. (He was selling because he had learned before the public did that the Food and Drug Administration would reject his application for the cancer drug Erbitux. The government never alleged that Stewart knew about the FDA decision. Most ironically, the FDA has now approved Erbitux.)

?How has this case affected society?

The case affects society because this company is the moral rot that inevitably infects any society in which the government’s primary role is to serve as a paternalistic caretaker for the citizenry, a rot that has increasingly infected the federal government ever since the advent of the paternalistic state many decades ago. That infectious rot pervades the Martha Stewart case from start to finish.

They developed a successful treatment for cancer; federal law required that it secure the permission of federal bureaucrats at the FDA before the company could offer the cancer treatment for sale to the American people. If this company is doing fraud means it defiantly affects society

How has this case affected the business community?

If the one company is doing fraud the similar companies is also effect because the society always generalize any issue so automatically has this case affected the business community as well