Sorting Out the Martha Mess

The latest CEO to become entangled in the widening series of corporate scandals is Martha Stewart, founder of Martha Stewart Living Omnimedia Inc. (MSO ) America's most celebrated homemaker has become the subject of screaming headlines and messy questions into her stock trading. The U.S. Attorney for the Southern District of New York, along with the Securities & Exchange Commission and a House Commerce & Energy subcommittee, are trying to figure out whether Stewart is guilty of insider trading after dumping her 3,928 shares in the tiny biotech ImClone Systems Inc. one day before the stock plummeted on bad news. The scandal has sliced more than 13% off the stock price of Omnimedia since June 6, when news broke of its founder's lucky timing. Here are some of the questions surrounding Stewart's trading:

Why is Stewart under investigation when other people also sold stock on that day?