This bill would ban members of Congress and their spouses and dependent children from buying individual stocks while serving in office. Right now, members of Congress can trade stocks just like anyone else, which critics say creates opportunities for insider trading—using non-public information they learn on the job to make profitable trades. This bill aims to close that door by prohibiting these stock purchases entirely.

However, the bill does allow members to sell stocks they already own, but with a catch: they must publicly announce their intention to sell 7 to 14 days before actually selling. This advance notice requirement is designed to prevent last-minute trades based on secret information. The bill includes several exceptions—for example, spouses and children can still buy and sell stocks as part of their regular jobs, and dividend reinvestment is allowed. The bill also permits ownership of diversified investment funds (like mutual funds and index funds) and small business interests.

If someone violates these rules, they face financial penalties. The penalty is either $2,000 or 10 percent of the transaction value, whichever is larger, plus they have to give back any profits they made from the illegal trade. If someone buys a stock illegally, they're also required to sell it. Members of Congress cannot use their official office budgets or campaign funds to pay these penalties—they have to pay out of pocket.

A bill to amend chapter 131 of title 5, United States Code, to require certain restrictions on stocks for Members of Congress and their spouses and dependents, and for other purposes.