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I unable to understand what is Insider Trading?

Discuss please
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by shakilicma76</i>
<br />I unable to understand what is Insider Trading?

Discuss please
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Insider trading shall include, –
(a) an insider person transacting any deal, directly or indirectly, using inside information involving listed securities to which the inside information
pertains, or using others to transact such deals;
(b) any other person to whom inside information has been passed or disclosed by an insider person transacting any deal, directly or indirectly, usinginside information involving listed securities to which the inside nformation pertains, or using others to transact such deals;
© transaction by any person as specified in clauses (a) and (b), or any otherperson who knows, or ought to have known under normal and reasonablecircumstances, that the information possessed and used for transacting any
deal is inside information;
(d) an insider person suggesting or recommending to another person to engagein dealing in any listed securities to which the inside information possessed by the insider person pertains, without the inside information being disclosed to the person who has dealt in such securities
I need some examples.
Example is that you want to invest in securities . One person ,who is insider, says you that invest in the shares of Uniliver Pakistan or PSO and say that he has confirmed information that the company is preparing to declear interim dividend.

The expression “inside information” means, –
(a) information which has not been made public relating, directly or
indirectly, to listed securities or one or more issuers and which, if it were
made public, would be likely to have an effect on the prices of those listed
securities or on the price of related securities;
(b) in relation to derivatives on commodities or information which has not
been made public, relating, directly or indirectly, to one or more such
derivatives and which are traded in accordance with accepted market
practices on those markets; or
© in relation to persons responsible for the execution of orders concerning
listed securities, information which is conveyed by a client to such person
and related to the client’s pending orders.

Insiders shall include, –
(a) sponsors, executive officers and directors of an issuer;
(b) sponsors, executive officers, directors and partners of a legal person or
unincorporated business association, in which the issuer holds shares or
voting rights, directly or indirectly, of twenty per cent or more;
© sponsors, executive officers, directors and partners of a legal person or
unincorporated business association who holds, directly or indirectly,
shares or voting rights of ten per cent or more in an issuer;
(d) sponsors, executive officers and directors of an organization, that has been
engaged in the placement of listed securities or the public offer of
securities or the issuing and marketing of such securities, who has had
access to insider information during his employment till a period of one
year after leaving employment;
(e) any natural person holding, directly or indirectly, ten per cent or more
shares of an issuer;
(f) sponsors, executive officers and directors of credit institutions in which
the issuer has an account;
(g) any person obtaining inside information as part of his employment or
when discharging his usual duties in an official capacity, or in any other
way relating to work performed under contract of employment or
otherwise;
(h) any person obtaining inside information through unlawful means; and
(i) a spouse, lineal ascendant or descendant, partner or nominee of a person
referred to in clauses (a) to (h).
This mean an insider is person who work in the company and he is not honest with company and give internal information to outsider to get some undue favour from investor in way of kinds or money.

Insider trading is simply when any person becomes able to influence the rate of securities by disclosing the information which was not dislosed previously. Such person may or may not be an interested person.