Question: Question 6 ( 1 point ) In 2 0 0 2 , Martha Stewart, the media mogul and CEO of Martha Stewart Living, was prosecuted

Question

6 (1

point

)

2002,

Martha Stewart, the media mogul and CEO of Martha Stewart Living, was prosecuted for insider trading regarding her sale of ImClone stock. Her stockbroker had informed her that Samuel Waksal, the CEO and chairman of ImClone, was selling substantial amounts of his stock in the company, so she then sold her ImClone holdings. What was Martha's fate?

Since she "saved" only $

45, 000

by selling her stock, her dealings were deemed too insignificant and the matter was not pursued:

She was found guilty of insider trading as a tippee and went to jail.

She claimed that she was merely acting on her broker's advice and didn't know the information provided was material and nonpublic, so she didn't qualify as a tippee.

She was found guilty of obstructing justice in a securities investigation and went to jail.

Question 6(1 point) In 2002, Martha Stewart, the media mogul and

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