That is because the actual stipulation is for there to be a confidentiality or fiduciary agreement. As shorthand, "illicitly obtained" could therefore be replaced with, "illicitly appropriated."
On its own, material and nonpublic information is fine to trade with. Likewise not all insider trading is illegal; most of it is explicitly legal and mundane.
On its own, material and nonpublic information is fine to trade with. Likewise not all insider trading is illegal; most of it is explicitly legal and mundane.