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In June 2002, Martha Stewart began to wrestle with allegations that she had improperly used inside information to sell a stock investment to unsuspecting investing public. That was when her personal friend Sam Waksal was defending himself against Securities and Exchange Commission (SEC) just before other investors learned that ImClone’s fortunes were about to take a dive. Observers presumed that Martha was also tipped off and, even though she proclaimed her innocence, the rumors would not go away. Martha Stewart is the multimillionaire proprietor, president, and driving force of Martha Stewart Living Omnimedia Inc. (MSO). The world did not know that Martha Stewart had sold 3,928 shares of ImClone for $58 each on December 27, 2001, until it surfaced in June 2002. The sale generated $227,824 for Martha, and she avoided losing $45,673 when the stock price dropped the next day. This caused her endless personal grief and humiliation, and the loss of reputation, as well as a significant drop to $5.26 in the MSO share price. The world did not know that Martha Stewart had sold 3,928 shares of ImClone for $58 each on December 27, 2001, until it surfaced in June 2002. The sale generated $227,824 for Martha, and she avoided losing $45,673 when the stock price dropped the next day. This caused her endless personal grief and humiliation, and the loss of reputation, as well as a significant drop to $5.26 in the MSO share price. The world did not know that Martha Stewart had sold 3,928 shares of ImClone for $58 each on December 27, 2001, until it surfaced in June 2002. The sale generated $227,824 for Martha, and she avoided losing $45,673 when the stock price dropped the next day. This caused her endless personal grief and humiliation, and the loss of reputation, as well as a significant drop to $5.26 in the MSO share price.

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