In 2002, Martha Stewart was accused of trading ImClone stock based on private (inside) information. The private information motivated her to sell the stock before it was publicly revealed that ImClone’s drug had failed to receive FDA approval. Other insider trading cases document that individuals can earn large profits from trading on insider information. What can we conclude from this evidence?

Answer rating: 100% (QA)

From the evidence provided several conclusions can be drawn about insider trading based on Martha Stewarts case and other documented instances 1 Illeg... View the full answer