Martha Stewart Living Omnimedia has eight core content regions - Home, Cooking and Entertaining, Gardening, Crafts, Holiday, Keeping, Weddings, and Baby and Kids - in that creative experts are constantly seeking and developing new ideas to maintain the high quality and value associated with the brand. …
The professionals at Martha Stewart Living Omnimedia generate a broad compilation of ‘how to’ articles, books, television programs, newspaper columns, radio sections and products relating to the eight core content areas all through the four business section.
Publishing is Martha Stewart Living Omnimedia's largest business section that accounted for US $182.6 million of total revenues for 2002. It includes magazines such as Martha Stewart Living and Martha Stewart Weddings, nearly 40 Martha Stewart books, the ask Martha newspaper column and radio show, and a music library of compilation CDs. The Television section accounted for US $ 26.7 million of total revenues for 2002, where it now offers around 30 opportunities every week for viewers to watch Martha Stewart programming. Kmart plays a huge role in Martha Stewart Living Omnimedia's merchandising section. In 1987, Martha Stewart Living Omnimedia and Kmart created a partnership that has been extremely beneficial for both companies. Sales of Martha Stewart merchandise in Kmart stores have reportedly been in excess of US $5 billion since the beginning of the partnership. (Louria, 2) In 2001, Kmart sold US $1.5 billion worth of Martha Stewart Everyday house wares, and those licensing fees accounted for almost 25% of Martha Stewart Living Omnimedia's profits. But since Kmart filed for bankruptcy on January 22, 2001, Martha Stewart Living Omnimedia finds its fastest growing section - merchandising - in jeopardy. Kmart has increasingly lost ground to competitors such as Wal-Mart and Target due to ill-advised price-cutting strategies and a mismanaged supply chain. It has already closed the doors of 250 to 350 of 2,100 stores and Martha Stewart Living Omnimedia has taken quite a hit.
It has already closed the doors of 250 to 350 of 2,100 stores and Martha Stewart Living Omnimedia has taken quite a hit.
In many ways, the IPO for Martha Stewart Living Omnimedia, Inc. has thus far been the high watermark for both the organization and its principal stockholder, Martha Stewart. It was Martha's singular good fate-as well as bad fate-to go public with her stock offering at nearly the top of the greatest bull market in American history. This timing meant that while she immediately became a billionaire on paper, the stock would likely drift down with the rest of the market, so that, financially speaking at least, she had no where to go but down as well.
Not only has she so far been unable to hold on to the initial phenomenal gains from the IPO itself, but also there have come to be other-and more troublesome-questions clouding the organization's future. One question had been hovering over the organization from the day it went public: What would happen to the shares if Martha herself-who held more of them than anyone else-were to meet an untimely end It was the same question that some investors had tossed out regularly during the IPO road show. (Louria, 3) Now that the stock was trading publicly, it was no longer a matter of mere theoretical concern: More than a billion dollars of stock market wealth hung on the ability of the organization's chairman to bolt from bed each morning and begin pursuing one of the most demanding schedules of any public figure on earth.
And there was another problem that abruptly moved from the realm of the theoretical to the real: Would Martha's organization be able to survive looming problems besetting its most lucrative business partner, Kmart Corp. The entire matter became real, immediate, and suddenly ...
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e act is illegal under the laws of the United States. According to Hough, insider trading is highly prevalent in the United States because trade data support the said interpretation on insider trading prevalence in the country. For example, according to Hough, “back in 1974, a paper published in the Journal of Financial Economics showed shares of the average takeover target beat by 14% over seven months prior to the announcement” but last May 2011, “a study published in the Journal of Multinational Financial management found abnormal returns of nearly 7% during the 50 trading days before deal announcements.” The situations identified by Hough are only possible if there insiders in the
Martha’s website offers an entertainment product classification. The classification offers current and prospective customers to buy her regularly printed Mart’s Entertaining journal. The classification offers products relating to cocktails.
Either insider trading can be legal or illegal depending on whether the information relied upon is public or non-public. The presidents of the firms, foremost shareholders, lawyers, accountants and other imperative employees are among the populace who may perhaps have right of entry to the non-public information.
It is considered so important because this type of security transaction, insider trading, can potentially harm individual investors, industries, and a country's business reputation. This is a truly global issue.
Insider trading is defined by the United States Securities and Exchange Commission as "buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, non-public information of the security" (2006).
Martha's initial error of lying without legal counsel was compounded by her attorney's failure to reach a plea agreement and allowing the case to go to trial. As many as 87% of federal fraud cases are settled with plea agreements and there is a sound legal reason for it.
It is considered so important because this type of security transaction, insider trading, can potentially harm individual investors, industries, and a country’s business reputation. This is a truly global issue.
There was some information that suggests that this agreement was tampered with. Stewart denies this allegation. Stewart claims that she did not knowing sell her shares on that date because of anything other than her preexisting agreement, while testimony from
Economically analyzing the situation in which an individual violates the insider trading laws can help in judging whether a penalty serves its purpose of discouraging violation of insider trading laws. An individual would commit such an act after weighing the
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