A U.S. judge handed domestic icon Martha Stewart a five-month prison term on Friday for her role in a stock-trading scandal.

Stewart, 62, was also given five months of home detention to be served concurrently with two years of probation. The judge also handed Stewart a fine of $30,000 US.

The sentence has been stayed pending an appeal of Stewart's March conviction.

Martha Stewart outside the courthouse after sentencing. (AP Photo)
Martha Stewart outside the courthouse after sentencing. (AP Photo)

"I will be back," Stewart said outside the courthouse following her sentencing.

"I'm not afraid whatsoever. I'm just very, very sorry that it has come this. That a small personal matter has been able to be blown out of all proportion," she said.

On the steps of the courthouse, Stewart thanked her numerous supporters, urging them to back her company by buying her products.

The sentence was comparatively light, given that the judge had the option of giving Stewart up to 16 months in prison.

Stewart was convicted on one charge of conspiracy, one charge of obstruction of justice and two charges of making false statements to investigators.

Stewart was convicted of selling almost 4,000 shares of ImClone Systems on Dec. 27, 2001, after being tipped that former ImClone CEO Sam Waksal was trying to dump his own shares in the company. Waksal is a friend of Stewart.

Prosecutors said Stewart and her former stock broker, Peter Bacanovic, then tried to cover up the reason for the trade.

Bacanovic also received a five-month prison sentence on Friday.

Shares of Martha Stewart Living Omnimedia surge

In the wake of its founder's relatively light sentence, shares of Martha Stewart Living Omnimedia rallied almost 37 per cent on the New York Stock Stock Exchange. The stock was up $3.17 US at $11.81 US.

Stewart resigned her post as CEO of her company when she was charged and stepped down from the board of directors following her conviction. However, she is still involved in the creative aspects of the business.