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Understanding insider trading and why it's considered fraud

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Martha Stewart was convicted of insider trading, and why is this considered fraud. What did she do that was so bad is have earned her prison sentence.

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Solution Summary

The solution cites exactly what Martha Stewart was convicted for - not insider trading, but then the solution explains why it wasn't insider trading. Next the fraudulent part of insider trading is explained in terms of its impact to the business world.

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Actually Martha Stewart was not convicted of insider trading, and I suspect the reason she wasn't is exactly the problem you were having with it.

She was convicted of: NEW YORK (CNN/Money) - "A jury found Martha Stewart guilty Friday on all four counts of obstructing justice and lying to investigators about a ...

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