What does it mean:AN EDGE IN THE MARKETS, 2) EXCESS RETURNS?

Question

Hello,guys!I'm not an Eng.speaker.
Can anybody help me with the meanings of 2 phrases:AN EDGE IN THE MARKETS, 2) EXCESS RETURNS.They're from a book,a context, "There exists no information that can give a trader AN EDGE IN THE MARKETS.There is little debate that markets do not exhibit this type of behavior. Numerous studies have shown that corporate insiders -those privy to nonpublic information - have earned EXCESS RETURNS.If one could acquire similar information in the markets,profits would undoubtedly result.The bigger question is the cost of such information. Since insider trading is illigal, one would risk loss of freedom for an almost certain EDGE IN THE MARKET.

Answer 1

The book is talking about insider trading, Insider trading is when someone who has access to information before it is desseminated to the general public, and he uses that information ahead of time for personal gain. ...That Is the edge in the market, and also the EXCESS returnns

Normally the share price is determined by investors bidding to buy AND sell stock based on information that is freely available to all in the marketplace.

Someone with "Inside" information as I explained above, can buy , before others have the info if the info is good, or sell , before the others know, if the info is bad.

And this insider trading is ENTIRELY ILLEGAL

But sometimes it can be hidden, especially in unregulated markets like OTC, and Pink Sheets.