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Quotation from Dirks v. SEC by Supreme Court of the United States
“Imposing a duty to disclose or abstain solely because a person knowingly receives material nonpublic information from an insider and trades on it could have an inhibiting influence on the role of market analysts, which the SEC itself recognizes is necessary to the preservation of a healthy market.”
Dirks v. SEC, Opinion of the Court (Justice Powell), Part III (U.S. Reports text (Legal Information Institute))
Justice Powell explains why the Commission's broad tippee rule would harm the work of analysts.
Citation: "Imposing a duty to disclose or abstain solely because a person knowingly receives material nonpublic information from an insider and trades on it could have an inhibiting influence on the role of market analysts, which the SEC itself recognizes is necessary to the preservation of a healthy market." — Supreme Court of the United States, Dirks v. SEC, Opinion of the Court (Justice Powell), Part III (U.S. Reports text (Legal Information Institute)). (id dirks-v-sec-q3)
Portrait: US Supreme Court Justice Lewis Powell - 1976 official portrait, Color negative by Robert S. Oakes, Public domain.
