Supreme Court makes it easier to prosecute insider trading

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Abstract: In its first major insider trading case in nearly 20 years, the U.S. Supreme Court removed a significant barrier to prosecution of such cases. Resolving a split among the circuit courts of appeal, the Court held in Salman v. United States that insiders who provide tips to relatives or friends can be liable for insider trading even if they receive no pecuniary benefit. This article discusses the case and its impact for companies.