STOCK Act
In plain English
The Stop Trading on Congressional Knowledge Act of 2012. It requires Members of Congress to publicly disclose stock trades within 45 days, so the public can see who bought or sold what — and roughly when.
Formal definition
Federal legislation (Pub.L. 112–105) prohibiting Members of Congress and certain executive branch employees from using non-public information for personal benefit and requiring public disclosure of certain financial transactions via a Periodic Transaction Report (PTR) within 30 days of notification and no later than 45 days after the transaction date.
Example
When Nancy Pelosi buys $375,000 of NVIDIA stock, she has 45 days to file a PTR disclosing the trade. The filing becomes public the moment it's submitted.
Related
Educational only. TrustFirst is not a registered investment adviser and does not provide personalized investment advice. This definition is written to teach the concept; it is not a recommendation to take any specific action.