Hedge-Fund Consultant Bantered for Insider Information

The basic puzzle of insider trading is that it is legal to call up corporate executives or government officials and ask them questions, and it is legal to trade stocks, and it is even legal to trade stocks after asking your question and getting an answer, except that sometimes it isn't. You're supposed to be able to ask questions. If you're a shareholder of a company, that company's executives work for you. If you're a citizen of a country, its government's officials work for you. If you have questions, they should help. Transparency is generally thought of as a virtue. Companies shouldn't keep secrets from shareholders, and governments shouldn't keep secrets from citizens, unless they really need to.
QuickTake Insider Trading

Sometimes it's even the official's job to talk to you. Corporate executives regularly meet with big shareholders and potential shareholders. They do this for the same reason that they meet with customers and suppliers: The company's business involves managing relationships with the capital markets, just as it involves managing relationships with customers and suppliers, and meeting with investors -- to pitch financing transactions or get feedback or encourage them to buy the stock -- is just part of the job. Similarly, government officials regularly talk about their work with citizens, not just because the citizens are curious, but also because the officials' work involves getting outside input. If you work for the Food and Drug Administration, approving generic drug applications, you can't really do your job without talking to people outside the FDA. Like, at the very least, you need to talk to the companies that ask you to approve their drugs! But you might also be interested in views from trade groups, doctors, patients, or other people with something to say about drugs.