Discussion Questions

Aired March 8, 2004

On Friday, a jury found Martha Stewart guilty on all four counts against her. As a result, Stewart could face months or even years in jail.

1. Who is Martha Stewart? Why was she on trial? On what counts was she found guilty? What potential consequences does she face?

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2.  Have students summarize in their own words the case against Martha Stewart. Ask students to explain the roles of Sam Waksal, Peter Bacanovic and Douglas Faneuil.  

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3. Define the following business terms from the segment: stocks, stock broker, stock tip, stop-loss order, insider trading, obstruction of justice, conspiracy and securities fraud. How were they used in the story? 

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4. Do you agree with the verdict in the Martha Stewart case?

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Related Sites

CNN.com: Martha Stewart found guilty on all counts http://www.cnn.com/2004/LAW/03/05/stewart.main/index.html)

CNN.com: Martha Stewart: I will appeal(http://www.cnn.com/2004/LAW/03/05/martha.responds/index.htm

CNNMoney.com: Martha on Trial (http://money.cnn.com/news/specials/martha/)

Keywords

Martha Stewart, Sam Waksal, Peter Bacanovic, biotechnology, ImClone Systems, FDA, stocks, congressional investigation, insider trading, obstruction of justice, guilty, appeal