Insider dealing primarily involves what illegal activity?

Insider dealing primarily involves the illegal activity of buying and selling shares with insider information. This occurs when individuals with access to non-public, material information about a company use that information to make trades in the company's securities. Such behavior undermines trust in the financial markets and is considered a form of market manipulation because it gives an unfair advantage to those with insider information over regular investors who do not have access to the same information.

When individuals engage in insider trading, they may conduct transactions based on their knowledge of forthcoming events, such as mergers, acquisitions, or significant corporate changes, which could affect the company's stock price once the information becomes public. This violation not only erodes the integrity of the market but also breaches fiduciary duties owed to the company and its shareholders.

Other options describe different types of unethical or illegal activities but do not specifically encompass the essence of insider dealing. Market manipulation involves different strategies unrelated directly to possessing insider information, while disclosing confidential information pertains to a breach of confidentiality rather than trading. Providing unauthorized discounts to employees does not involve trading securities at all and is unrelated to the principles of insider trading. Thus, buying and selling shares with insider information accurately captures the essence of insider dealing.