Andrew Verstein on the Salman Personal Benefit Standard for Tipping Liability

Steve describes a psychiatrist who trades after learning about a merger from one of his patients, raising the question, “Does Treadwell’s conduct constitute an illegal tip under SEC Rule 10b-5?” We can ask the same question of the psychologist. Steve’s hypothetical is meant to generate discussion, and the possibility for extended discussion is meant to demonstrate just how much Salmon v.