Don M. Davis, as of the Estate of Ethlyn M. Davis, Appellee/cross-Appellant v. Merrill Lynch, Pierce, Fenner & Smith, Inc., Appellant/cross-Appellee

McMILLIAN, Circuit Judge.

Merrill Lynch, Pierce, Fenner & Smith, Inc. (Merrill Lynch), appeals from a final judgment entered in the United States District Court 1 for the District of South Dakota upon a jury verdict awarding Don M. Davis (Davis), as executor of the estate of Ethlyn Davis, $100,000 in compensatory damages and $2,000,000 in punitive damages. For reversal, Merrill Lynch argues that the district court erred in instructing the jury (1) on the elements necessary to establish liability under Section 10(b) of the Securities Exchange Act of 1934 (Section 10(b)), 15 U.S.C. § 78j(b)…