Using confidential information, also known as insider trading, refers to the illegal practice of trading securities or commodities based on non-public information about a company or market conditions. This can include:

1. _Material non-public information_: Confidential information that could impact the company's stock price or market conditions.

2. _Insider knowledge_: Information obtained through a position of trust or confidence, such as from an employee, executive, or board member.

3. _Tippees_: Individuals who receive and trade on confidential information from an insider.

Insider trading can include:

1. _Trading ahead of public announcements_: Buying or selling securities before news is made public.

2. _Using confidential data_: Trading on non-public information about a company's financials, mergers, or other significant events.

3. _Front-running_: Trading ahead of a company's own trades or market orders.

Insider trading is illegal because it:

1. _Undermines fair markets_: Unfairly advantages those with access to confidential information.

2. _Erodes trust_: Damages investor confidence in the markets and companies.

3. _Creates unequal access_: Favors those with insider knowledge over other investors.

Regulators, such as the Securities and Exchange Commission (SEC), enforce laws and regulations to prevent and detect insider trading, including:

1. _Monitoring trading activity_: Identifying suspicious patterns and investigating potential insider trading.

2. _Enforcing confidentiality rules_: Requiring companies and individuals to maintain confidentiality and prevent unauthorized disclosures.

3. _Prosecuting insider trading cases_: Holding individuals and companies accountable for illegal insider trading activities.

4. _Implementing insider trading policies_: Requiring companies to establish and enforce policies to prevent insider trading.

By preventing and detecting insider trading, regulators aim to maintain fair, transparent, and orderly markets.