Which of the following describes insider information?

Insider information refers to any confidential or non-public information that can impact a company's stock price if released to the public. This type of information is typically known only to a limited group of individuals, such as company executives or employees, before it becomes available to the general public.

The correct answer highlights that insider information is specifically categorized as any unpublished price-sensitive information, which is crucial because it can lead to market manipulation or unfair advantages if leveraged for personal gain. This understanding is pivotal in maintaining market integrity, as insider trading laws are designed to ensure that all investors have a level playing field based on public knowledge.

In contrast, publicly traded information released through regulatory channels is already known to the public and therefore does not constitute insider information. Information from financial audits, while potentially insightful, is also typically disclosed publicly after audits are completed and does not fall into the category of insider information. Lastly, rumors about company performance may circulate informally but do not meet the criteria for insider information, as they lack substantiated validity and are often unverified. Thus, the emphasis on unpublished price-sensitive information solidifies the definition of insider information in the context of regulatory compliance and ethical trading practices.