Insider trading

Insider trading is where a director, or another insider in a company, use information that isn’t available or known by the general public to their advantage or the advantage of someone else. This is especially true in the case of the securities of a company.
For example, Director X is aware of a confidential development that will skyrocket the value of the shares of the company. As a result of this, they give their friend, Y, money to purchase a lot of shares in the company. Director X instructs Y to purchase the shares under Y’s name so that nobody will know that Director X will benefit from the purchase.