This information can provide an unfair advantage to individuals who possess it, as they can make investment decisions based on information that others do not have access to. Insider information can be about a wide range of topics, including upcoming mergers, financial results, or new product launches. It is illegal to use insider information to trade securities, and doing so is known as "insider trading" and can result in criminal prosecution and significant fines.

One juicy examples of insider information was the insider trading scandal involving Goldman Sachs. Federal prosecutors alleged that a former Goldman Sachs employee tipped off friends about upcoming deals, leading to illegal trades. This case was one of several insider trading scandals linked to the Wall Street giant in recent years. Another notable case was the one involving former pharmaceutical executive, Martin Shkreli, who was convicted of securities fraud and conspiracy related to insider trading. He was accused of illegally using confidential information from a pharmaceutical company to make trades, earning himself millions of dollars in the process. Insider trading scandals have been rampant in the financial industry and have led to some pretty harsh consequences for those involved.