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Martha Stewart apparently got an insider tip from her broker on a stock, involving a company with whom she was personal friends of the president.
Martha Stewart apparently got an insider tip from her broker on a stock, involving a company with whom she was personal friends of the president. She apparently lied about what transpired before a Securities and Exchange Commission investigation. She, her broker, and the president of the other company all wound up spending time in jail.
1.Is it ethical for a broker to dispense any insider information? To dispense it to favored clients, but not to his company? To disclose it to favored clients but not other clients?
2.To what extent is it practical to require that the president/majority shareholder of a company and knows the company is not doing well will not sell his stock before this news becomes public?
