Martha Case Essay

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| Introduction The Martha Stewart insider case was a high profile court case that captured media attention. It was also one that was filled with great ambiguity as it relates to penal aspect and determination of being guilty or innocent This assignment seeks to apply the evidence from the case study incorporated with existing academic investigation to discuss the central moral and ethical issues surrounding the case as it relates its associations to business and societal ethics. In addition, the greater issue of insider trading will be examined and moral foundations for the issue will be established and discussed. Furthermore, an analysis of whether or not, Martha Stewart receive adequate punishment, alongside those who would be in cahoots relating to the insider trading such as Peter Bacanovic and his junior associate, Douglas Faneuil from Merrill Lynch. Finally, the paper will conclude with an assessment of which is more important as it pertains to ethics and the law. Insider Trading For one to examine critically the circumstances Stewart encountered it would be practical to examine the transpiration of conviction on offences such as insider trading and the penalty associated with such a misdemeanour. In relation to the case of Martha Stewart, insider trading was clearly evident in Martha Stewart’s instance. Martha had been a shareholder of the biopharmaceutical company ImClone System Incorporated. ImClone focused much on advance oncology care and had designed a new drug called Erbitux for which would have a treatment for patients with colon cancer. However, the licensing application had been rejected and would have resulted in ImClone’s share price plummeting. Merrill, Lynch's senior broker, Peter Bacanovic had informed Martha about the drastic market change impending of the ImClone’s share price through his assistant Douglas Faneuil. Mr Faneuil

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