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Quotation from SEC v. Capital Gains Research Bureau, Inc. by Supreme Court of the United States
“The high standards of business morality exacted by our laws regulating the securities industry do not permit an investment adviser to trade on the market effect of his own recommendations without fully and fairly revealing his personal interests in these recommendations to his clients.”
SEC v. Capital Gains Research Bureau, Inc., Opinion of the Court (Justice Goldberg), Part III (U.S. Reports text (Legal Information Institute))
Justice Goldberg applies the fiduciary standard to the practice of scalping.
Citation: "The high standards of business morality exacted by our laws regulating the securities industry do not permit an investment adviser to trade on the market effect of his own recommendations without fully and fairly revealing his personal interests in these recommendations to his clients." — Supreme Court of the United States, SEC v. Capital Gains Research Bureau, Inc., Opinion of the Court (Justice Goldberg), Part III (U.S. Reports text (Legal Information Institute)). (id sec-v-capital-gains-research-bureau-q3)
Portrait: Justice Arthur Goldberg - 1965 - A720-5, Yoichi Okamoto, Public domain.
