Inside information is any information about a company that is not available to the public and could provide a financial advantage when used to buy or sell shares of that or another company's securities.

For example, if you know a client is currently involved in a lawsuit, it is illegal for you to tell family or friends to trade their stock, or even to suggest it.

There are serious legal consequences for insider trading, and the U.S. Securities and Exchange Commission tracks down suspicious activity. It doesn’t matter if the trade is made in your own name or in a friend or family member’s name.