Insider trading can include both legal and illegal actions. Obviously, in the case mentioned above, it was illegal conduct that wound Bhagat in court. According to the US Security and Exchange Commission, \"The legal version is when corporate insidersofficers, directors, and employeesbuy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC.\" ["Fast Answers: Insider Trading."SEC.gov. Web. 30 Apr. 2015.] They go on to say, \"Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about die security. Insider trading violations may also include "tipping" such inforroation, securities trading by the person "tipped,\" and securities trading by those who misappropriate such information.\