Stock trading ban for sitting members of Congress advances in new bill

What does this do?

HR 7008 would prohibit members of Congress from purchasing individual stocks while serving in office. Spouses and dependent children living with or financially dependent on the member would also be covered by the ban. Diversified funds such as index funds, small business investments, and stocks held in certain trusts where the member has no control over investment decisions would still be permitted, as would reinvesting dividends from stocks already owned.

Who does it affect?

The bill applies to all sitting members of Congress and their immediate family members who live with them or are financially dependent on them. Spouses or dependents who work in finance and trade stocks as part of their jobs would be exempt from the advance-notice requirement for sales.

Why does it matter?

Members who want to sell stocks would be required to publicly announce the planned sale between 7 and 14 days in advance, including the date, a description of the transaction, and the number of shares, posted online for public view. Violations carry financial penalties and can be referred to the Justice Department if fines go unpaid after a member leaves office.

What does it cost, and who pays?

• Penalty: $2,000 or 10% of transaction
• Illegal profits also forfeited
• No office or campaign funds for fines