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

By Greg Stohr, Patricia Hurtado and Bob Van Voris, Bloomberg News

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?

In a unanimous decision, the Supreme ...