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Insider Trading by Congress

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Should insider trading by Congress be allowed?
Should insider trading by Congress be allowed?
The US Senate and the US Supreme Court are the only two out of 975 federal entities that seem to have no rules or laws prohibiting them from trading stocks based on nonpublic information they gain on the job. A 2004 study revealed that US Senators' stock trades performed 12.3% better than the market average.

The Stop Trading on Congressional Knowledge (STOCK) Act intended to close this loophole for members of Congress; however it has yet not come up for a vote despite being introduced three times.

Proponents contend that regulating insider trading is inefficient, would be impossible to implement in Congress, and could harm the flow of information between Capitol Hill and the public. Opponents contend that congressional insider trading allows for unethical profiteering and conflicts of interest. They argue that government officials should be held to the same standards as all other Americans. Read more…

Overview
Core Question
Did You Know?
Historical Timeline
Comments


Insider Trading ProCon.org is a nonpartisan, nonprofit website that presents facts, studies, and pro and con statements on questions related to insider trading by congress.

Pros & Cons by Category
CORE QUESTION
  Should insider trading by Congress be allowed?

Defining Insider Trading
  What is insider trading?
  What are some examples of illegal insider trading?

Insider Trading Law and Regulation
  What are the US insider trading laws and penalties?
  Which agencies are responsible for establishing and enforcing insider trading laws?
  What are some government agencies that have conflict of interest rules or other regulations prohibiting their employees from trading stocks on which the employees may have insider information?

Legal Loophole for Congressional Insider Trading
  Is it legal for Congressional representatives to trade securities based on insider information?

The STOCK Act
  What is the Stop Trading on Congressional Knowledge (STOCK) Act?
  Should Congress pass the Stop Trading on Congressional Knowledge (STOCK) Act?

Congressional Representatives' Stock Performance
  How do Congressional representatives' stocks perform in relation to the general market?

Financial Disclosure
  What are the financial disclosure reports that are filed annually by the US House Representatives and Senators?
  What are some reported difficulties with evaluating Congressional representatives' financial disclosure reports?

Political Intelligence
  What is the Political Intelligence Disclosure Act?
  What are some of examples of how "political intelligence" can be acquired and used for investment decisions on Wall Street?

Insider Trading and the Market
  Does insider trading contribute to market efficiency?
  Does insider trading harm public confidence in the market?
  Is insider trading a victimless offense?

Share your thoughts on insider trading by congress and read, vote on, and reply to existing comments. Join the debate.


ProCon.org Notices (archived after 30 days)

1/3/2012 - UPDATED: Should insider trading by Congress be allowed? - Read pro and con arguments from Newsweek Senior Editor Daniel Gross (pro), US Senator (D-NY) Kirsten Gillibrand (con), Cato Institute Director Jim Harper (pro), Hoover Institution Research Fellow Peter Schweizer (con), Harvard University Economics Professor Jeffrey Alan Miron (pro), US Senator (I-CT) Joseph Lieberman (con), and more.

12/29/2011 - UPDATED: Should Congress pass the Stop Trading on Congressional Knowledge (STOCK) Act? - Read pro and con arguments from US Representative Tim Walz (pro), Columbia University Law Professor John Coffee, Jr. (con), US Senator Scott Brown (pro), Cato Institute Director Jim Harper (con), US Representative Louise Slaughter (pro), Harvard University Economics Professor Jeffrey Alan Miron (con), UCLA Law Professor Stephen M. Bainbridge (pro), Senior Editor of Newsweek Daniel Gross (con), and more.

Archived Notices (archived after 30 days)

 

Last updated on 1/26/2012 4:44:25 PM PST

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