GME is a retailer of video game products and personal computer (PC) entertainment software. On Wednesday, Chairman International and Director Richard Fontaine sold 270,000 shares for $6.6 million. Overall insiders sold 3.6 million shares in the past year. GME shares are up about 20% in the past year, and it trades at a discount 7-8 forward P/E compared to the 8.9 average for its peers in the consumer electronics retail group. While most insider trading is legal, the term is commonly used to refer to the illegal kind when a corporate insider trades based on material non-public information that can have an effect on the company's share price. By law, insiders are prohibited from trading based on non-public information, but most believe that such trading does occur around the edges. The thinking goes that corporate insiders, because of their access, have the most up-to-date information on the health of their companies and the industries they operate in. Investors, as a result, can benefit from the timely knowledge of insider transactions. In fact, one University of Michigan study found that when executives bought shares in their own companies, the stocks tended to outperform the total market by 8.9% over the next 12 months. Conversely, when they sold shares, the stock underperformed by 5.4%.