What is the definition of insider trading, and what are some examples of insider trading?

Insider trading is a term used to describe the illegal buying or selling of securities by individuals or entities in possession of material, non-public information about a company. It occurs when individuals or entities use confidential information to make investment decisions that are not available to the public. The use of such information gives the trader an unfair advantage over other investors and can distort the market, leading to serious financial consequences.

Examples of insider trading include a corporate executive who sells stock in their company before it announces poor financial results or a stock analyst who shares confidential information with a hedge fund manager in exchange for a personal benefit. Another example of insider trading is a situation where a government official who has access to confidential information regarding a company's future business plans, and then trades on that information before it is released to the public. These activities are illegal, and insider trading is considered a violation of securities laws in most countries around the world.