What qualifies as insider information?

Insider information refers specifically to non-public information about a company's shares that can materially impact the share price. This type of information can include details about upcoming earnings reports, mergers and acquisitions, or other significant corporate events that haven't yet been disclosed to the general public.

When individuals with access to such insider information trade shares based on that knowledge, they are engaging in insider trading, which is illegal in most jurisdictions. The essence of insider information is that it is not available to the general investing public, thus giving individuals with access to it an unfair advantage in the marketplace.

In contrast, information that is widely known to the public does not qualify as insider information since it is accessible to all investors, and therefore cannot influence investment decisions in a manner that creates an unfair advantage. Similarly, general data about industry trends or general information about a company's profits do not necessarily meet the criteria for insider information unless it is specific, not publicly disclosed, and likely to affect the trading price of a particular company's shares.