When does a stock tip become insider trading? Typically, it’s when the tipper has inside information that is not yet publicly available. Every quarter, publicly listed corporations must report how the company performed in the quarter before. That is considered privileged and highly confidential information. If someone performs an equity trade after a public disclosure, that is considered a fair trade. But if the seller acted on the information before it became public – such as amassing a large position before a material announcement – that could result in a charge of insider trading.