An example may be that you know that a company is going to be taken over before it is announced to the stock exchange. Knowing that such a move is liable to cause the price to rise, you buy shares in the company, and subsequently profit from the transaction.
This practice is illegal in all countries and exchanges, and whenever a take-over, or major deal takes place, persons who placed larger deals before the event may be investigated.
Within a company, there are many people who might have access to information that might be construed as privileged to their position in the company. Nevertheless, they may wish to trade in the shares of their company (e.g. selling share options). To ensure that their employees can easily comply with the regulations, these companies will often publish dates when managers and senior staff members can trade in shares of the company without breaking the law.
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