Martha Stewart and her Insider Trading - Essay Example

Only on StudentShare

Extract of sample
Martha Stewart and her Insider Trading

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. ...
Download paper


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. …
Author : anguscremin

Related Essays

Business Ethics issues involved in insider trading
company leaking information to outsiders on the deals and handshakes taking place inside the firm and with the firm and parties outside the firm. If insider trading is prevalent, why must we consider the ethical aspects of insider trading? According to Joseph Des Jardins, “unlike some business disciplines, there is no single answers in ethics, no single body of information, nor even a single framework for thinking about ethics” (9).
6 pages (1506 words) Essay
Martha Stewart Unethical Practices
Martha Stewart was able to muster enough strength to overall all insurmountable obstacles, including the stock market scandal, to retain her business and home icon status.
4 pages (1004 words) Essay
Currency Trading Exercise : Report
The trading exercise started with small amount from all available currencies on the market. However, the exercise was not easy as I expected because I lost all the money within the first two days. I decided to open another account, bought different type of currencies and sold them. The result was still the same where I made a loss of more than fifty per cent. 2) My experience on the stock market The investment in the Saudi Stock Market was a good way of making money especially by using the Stock Market Strategy. I was good at tracking the time at which the stock would fall or rise in value and...
3 pages (753 words) Assignment
Trading Infrastructure
The selection of the distribution channel depends on the market segment which the ceramics companies are targeting. The ceramic company must know the specific market segment and target customers it wants to get. Moreover, there must be a producer-distributor fit in which the two companies must complement their marketing policies, strategies and image. When the company sees fit, it may come up with an assessment of its previous performance of its experience and track record over the years.
4 pages (1004 words) Case Study
Fair Trading
The Office of Fair Trading is the most important government body in this connection. It has the power to impose penalties on those found breaching the law. The amendments made to this Act in May 2004 assigned greater powers to OFT so it can now conduct investigations in case a business is suspected of violating the prohibitions. Apart from Chapter 1 and II prohibitions, business need to be mindful of the anti-competitive activities outlined in Articles 81 and 82 of the EC Treaty. These prohibitions are similar to those contained in Chapter I and II but contain some additional information.
4 pages (1004 words) Assignment
Helens Trading Card Company
We will examine the role that a Systems Development Methodology and its associated System Development Life Cycle (SDLC) will play in designing an information system for Helen's company.
12 pages (3012 words) Case Study
Insider Trading
In Martha Stewart case, Martha avoided a loss of $ 46000 by selling her shares which is duly covered by the fine she was subjected to; Moreover, she lost a great deal of money as a tradeoff for her legal troubles. Furthermore, Martha Stewart Living Omnimedia’s stock price fell and Martha was banned to serve as an officer or director of a public company for five years. Peter Bacanovic, on the other hand, was barred from working in securities industry along with a $ 75000 fine. These penalties are enough to set an example for the public.
1 pages (251 words) Research Paper
Got a tricky question? Receive an answer from students like you! Try us!