Insider trading is the trading of a corporation's securities (stocks, bonds, or stock options) by corporate insiders such as officers, key employees, directors, or holders of more than ten percent of the firm's shares. Insider trading is illegal when an insider buys or sells a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, non-public information about the security.

Examples of insider trading include:

• Corporate officers, directors, and employees who trade the corporation's securities after learning of significant, confidential corporate developments
• Friends, business associates, and family members of such insiders, who trade the securities after receiving such information
• Employees of law, banking, and brokerage firms who were given such information in confidence to provide services to the corporation, who trade securities after receiving such information
• Government employees who learn of such information because of their employment by the government

The criminal penalties for insider trading are severe. If you are charged with insider trading, you need a criminal defense attorney who is experienced and knows how to protect your rights.