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Illegal insider trading is the buying or selling of a corporation's stock due to insider information not available to the public. It could be compared to being given a tip off for a bet before a race. In certain cases it may be legal for corporate insiders to trade stocks and shares if they make sure they do not base it on non-public information, however people in such positions need to be extremely careful they do not take advantage of their insider position to obtain information to base their trading on.

Read about the FSA's policy here.

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Insider trading case has been a big rumor around business world. Executives are often trading in their companies secrets for more appealing pay, and I will never understand why they are doing that. Danielle Chiesi is the most recent case of someone hurting their company in the interests of themselves, she has been arrested on charges of insider trading. Stock trades are designed to be perhaps for every person investing in them, and when someone participates in insider trading they are giving someone else the advantage of knowing company details before it is made public.

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