SEC V MARTHA STEWART Essay Sample

Stock Trading Case
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SEC V MARTHA STEWART
Question 1
Martha Stewart was charged with conspiracy, securities fraud, and blocking of justice, all of which related to an individual stock business she transacted in 2001. She is one of the few business experts who can still claim popularity even after a highly-publicized scandal at the ImClone Stock trading company (Liu et al., 2019). She is the founder of the Stewart Living Omnimedia Inc. company, which has interests in publishing, merchandising, television, international relations, and selling electronics. She became the center of headlines in 2001 and investigations concerning her stock trading at ImClone. She was accused of doing prohibited business after she transacted four thousand shares in a biopharmaceutical company once he received an illegal bonus from Bacanovic, who was then a dealer at Merrill Lynch, Pierce, Fenner and Smith Inc. The two were further accused of creating an alibi for the company’s’ revenues and hid paramount information at their criminal examinations (Liu et al., 2019). Martha and Bacanovic’s transactions became illegal because their deal was based on insider information that the public did not know. Furthermore, they did not trade and keep it a secret. Instead, Martha told her best friend, who later became a key witness about insider information, which is also illegal according to SEC Laws.
Question 2
Stewart and Bacanovic violated the law of insider trading section 17(a) of the Securities Act of 1933, the SEC Rule 10b-5, and 10(b) of the Securities Act of 1934 (Liu et al., 2019). In some different cases, the United States attorney from the Southern District of New York gained an accusation arraigning Martha Stewart and Bacanovic in untrue declarations relating to the Stewarts trade scandal at ImClone. The securities Act of 1933 and 1934 control the registration of securities with the national stock markets and with the SEC. The security Act of 1934 also protects the transaction and auction of the guards. The Acts generally provide regulation terms in securities exchange companies to prevent unfair and inequitable practices in the exchanges and markets. The Security Exchange Commission regulates the conduct of security exchanges. The SEC was in charge of insider trading. This company facilitates the trading of public or private stock and securities by individuals who can access confidential data regarding the enterprise. The trade had lawful trading of securities by the company’s insiders. Besides, there are illegal actions by people attempting to benefit themselves from the business coming from confidential inf...