Martha Stewart Case Discussion & Analysis

Dr. Rodney G. Alsup, CPA, CITPProfessor of Accounting

ASEBUSS7 October 2011

Who am I?

Rodney G. Alsup, D.B.A., CPA, CITP

• Doctor of Business Administration (D.B.A.) University of Kentucky, USA

• MBA – Eastern Kentucky University, USA

• Professor of Accounting• Certified Public Accountant (CPA)• Certified Information Technology

Professional (CITP)• 30 + Bucharest visits

Analysis

Action/Decision/Transaction

Legal Status Ethical Status Business Practice

Classification Matrix

Legal Ethical Good Business Practice

Illegal N/A Yes Yes

Unethical Yes N/A Yes

Bad Business Practice Yes Yes N/A

Inside(r) Information

Intimate knowledge or material non-public (privileged)information on the affairs, operations, or financialposition of a corporation that will affect the market price of its publicly traded stock (shares). Unauthorized access to, or an attempt to benefit from, insider information is commonly a criminal offense. Also called inside information.

Business Dictionary.com: http://www.businessdictionary.com/definition/insiderinformation.html#ixzz10lXVzF00

Material

Having a logical connection with a subject matter or the consequential events or facts, or the knowledge of which would significantly affect a decision or course of action. Business Dictionary.com: http://www.businessdictionary.com/definition/material.html#ixzz10osaelo7

Questions Re Martha Stewart

• Was material non-public information involved?

• Would the information, if publically known affect the market price?

• Was there an attempt to benefit from the information?