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Is insider information different from the information which a company is disclosing to the investors through its prospectus?

If yes then company is doing an illegal activity.

If not then why insider trading is illegal?

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/04/25
Hamid Azhar
by Hamid Azhar , Intern , Pakistan Credit Rating Agency (PACRA)

insider information is different from information on prospectus.as information on prospectus will be public information whereas insider information may be related to company future action such as its merger with a well known group.providing or acting on insider information is an illegal activity as it leads to imbalance in market and create profit for individuals only having such type of information.

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