What kind of behavior can lead to a charge of insider trading?

Insider trading refers to the illegal practice of trading stocks or other securities based on material, non-public information about a company. This activity is considered unethical and is heavily regulated by securities laws to ensure fair trading practices in the market. The definition of material information includes any information that could influence an investor's decision to buy or sell stock.

Trading stock based on confidential information that is not yet available to the general public is a clear violation of these laws. This type of behavior undermines the principle of fair access to information in the financial markets and gives undue advantage to those privy to insider details. Engaging in such practices can lead to serious legal consequences, including fines and imprisonment.

The other options presented do not involve the misuse of confidential information. Buying stock based on historical performance or selling stock based on public market trends relies on information that is generally available to all investors and does not violate any laws. Similarly, advising others about stock opportunities in general does not imply knowledge of insider information and is instead part of regular market activities.