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Insiders ‘Back On The Hook’ After Top Court’s Trading Ruling

  • Court makes it easier to bring cases against traders
  • Decision is ‘victory for fair markets,’ Bharara says
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For two years, stock traders and the attorneys who represent them said insider-trading law was a muddle, with no one knowing exactly what was or wasn’t legal. On Tuesday, the U.S. Supreme Court said it had “easily” settled the question.

No one doubted that a trader who paid cash to an insider for privileged information faced prison. But what about the trader who got the tip from a friend or golfing buddy as a mere gift? Is it illegal to trade on that?