The Stop Trading on Congressional Knowledge Act, or “STOCK Act” for short, made it illegal for members of Congress to engage in insider trading. The act was passed in April 2012, during the presidency of Barack Obama.
In April 2013, Congress amended the STOCK Act, loosening its financial disclosure requirements and making it more difficult for members of the public to access the required filings.
The STOCK Act outlawed insider trading by members of Congress.
The law was passed in April 2012 with strong bipartisan support.
In April 2013, key provisions of the law were weakened, reducing the safeguards against insider trading.
Understanding the STOCK Act
Many people may be surprised to learn that until recently, trading based on material nonpublic information—otherwise known as insider trading—was both legal and commonplace among members of Congress.