I'm trying to understand what is considered "material" information held by an executive of a company. There is company information that an executive (say insider) will know that a public investor will not be privy to, but at which point does the information become material and at which point is the executive required to divulge the information into the public arena?
example: A mining company sends a rock to a lab to test it for gold. The company has stated that results will be announced in 4 weeks. The company obtains results (good or bad) from the lab after one week. They are now in possession of material information until the 4 week period they stipulated.
Additionally - I assume the lab is now considered an insider and cannot act on their information for profit. But this must happen all the time or is it very tightly controlled/regulated/respected?