Meaning of 'insider trading'

[Tom]

Hi

Could you please explain to me the red part?

The director was drummed out of office for life when it was discovered that she had been involved in insider trading.

Tom

[Lucien_Librarian]

Hi

insider trading means that someone with inside knowledge about some company revealed that information - e.g. that a merger is soon to happen- to someone outside the firm in order to influence its stock price and/or make great profit by buying or selling stocks based on that inside information.

[Pond969]

Tom... to elaborate on Lucien's post, 'insider trading' is illegal. It becomes 'insider trading' when one becomes privy to information in an unfair way. That is to say, by means not available to the average trader or the public at large.

John