I think you've pinpointed the exact problem. Most employees don't own a significant enough stake in their company to benefit from trades made by the company ac

I think you've pinpointed the exact problem. Most employees don't own a significant enough stake in their company to benefit from trades made by the company acting on company data. But executives do, and they personally gain from trading on behalf of the company. Trades that would be illegal for any other employee to make. I think what people mean is this isn't covered under the legal definitino of insider trading, but should be.