U.S. Supreme Court Backs Insider-Trading Prosecutions

The Supreme Court ruled unanimously that insider trading can be prosecuted even if the insider did not receive a tangible benefit, as long as the information was given as a gift to a friend or relative. This decision is significant for prosecutors, making it easier to pursue insider trading cases, although it does not overturn all aspects of previous rulings like the Newman case. The ruling is seen as a boost for prosecutors like Preet Bharara, who have been pursuing high-profile cases. The decision was unexpected in its unanimity and speed, given the court's previous reluctance to review similar cases.

What was the key issue the Supreme Court ruled on regarding insider trading?

• Whether insider trading requires a financial transaction.

• Whether insider trading is legal if the tip is given as a gift.

• Whether insider trading can be convicted without a federal statute.

• Whether insider trading is only illegal on Wall Street.

How does the Supreme Court's ruling affect past insider trading cases?

• It revives all past overturned convictions.

• It makes it harder to overturn past convictions.

• It has no effect on past overturned convictions.

• It nullifies all past insider trading convictions.

What must prosecutors now prove in insider trading cases following the Supreme Court's decision?

• That the insider received a personal benefit.

• That the insider was a government official.

• That the insider traded stocks personally.

• That the insider was unaware of the law.

Why is the Supreme Court's ruling on insider trading considered narrow?

• It only affects cases in New York.

• It changes all insider trading laws.

• It addresses a specific question about gifts.

• It only applies to Wall Street cases.

What was surprising about the Supreme Court's decision on insider trading?

• The decision overturned all previous rulings.

• The decision was unanimous and quick.

• The decision was delayed for years.

• The decision was split among the justices.