What Is the STOCK Act?
The STOCK Act is the U.S. law that forces members of Congress to publicly disclose their stock trades — the source of every "congressional trading" headline you've seen.
The STOCK Act — short for the Stop Trading on Congressional Knowledge Act — was signed into law on April 4, 2012. Its core purpose is simple: to confirm that members of Congress and other federal officials are not exempt from insider trading laws, and to make their financial transactions visible to the public.
Before the STOCK Act, there was widespread concern that lawmakers could trade stocks using information they learned through their official duties — committee briefings, draft legislation, or non-public government data — with little transparency. The law was designed to close that gap.
What the STOCK Act requires
The headline requirement is disclosure. Under the STOCK Act, covered officials must publicly report securities transactions — stocks, bonds, and similar assets — that exceed $1,000. Each transaction must be filed in a Periodic Transaction Report (PTR) within 45 days of the trade.
- Who it covers: members of the House and Senate, plus many senior executive- and legislative-branch officials — and their spouses and dependent children.
- What it covers: purchases, sales, and exchanges of securities above the $1,000 threshold.
- Where reports live: the Clerk of the House and the Secretary of the Senate publish them online for anyone to search.
What the STOCK Act does not do
This is where most people are surprised. The STOCK Act is a disclosure law, not a ban. It does not prevent a senator or representative from owning or actively trading individual stocks, including in industries their committees oversee.
Several reform proposals have aimed to ban or tightly restrict individual stock trading by members of Congress, but as of 2026 none have become law. Common criticisms of the current system include:
- The 45-day delay means the public often sees a trade weeks after it happened.
- Range-based amounts obscure the true size of a position.
- Weak penalties — a late PTR carries a standard $200 fee, small relative to many disclosed trades.
Why investors watch congressional trades
Despite the delay, congressional disclosures are a rich, legally public dataset. Some lawmakers sit on committees with deep visibility into specific sectors, and many investors track these filings to understand where informed money is flowing. Because the reports are scattered across two government portals and filed as individual documents, they're hard to monitor by hand — which is why aggregators exist.
Track congressional trades in real time
Mimic aggregates STOCK Act disclosures from 115+ members of Congress and alerts you when the politicians you follow make a move.
Frequently asked questions
What is the STOCK Act?
The Stop Trading on Congressional Knowledge Act is a 2012 U.S. law that affirms members of Congress are not exempt from insider trading laws and requires them to publicly disclose securities transactions over $1,000 within 45 days.
How long do members of Congress have to report a trade?
They must file a Periodic Transaction Report within 45 days of the transaction. Reports are published on the House and Senate disclosure websites.
Does the STOCK Act ban members of Congress from trading stocks?
No. It requires disclosure but does not prohibit trading. Several proposals to ban or restrict trading have been introduced but not enacted.
What is the penalty for violating the STOCK Act?
A late report carries a standard $200 filing fee. Critics argue enforcement is weak relative to the size of many disclosed trades.