The STOCK Act prohibits members and employees of Congress and the Executive Branch from breaching their “duty . . . with respect to material, nonpublic information derived from [their] position,” to Congress, the US government, and the American people.1  The STOCK Act effectively makes clear that the insider trading prohibitions of the Section 10(b) and Rule 10b-5 apply to government employees.  The STOCK Act only applies, however, to information obtained in connection with the member’s or employee’s official capacity as a government employee. 

As of October 2018, there have been no prosecutions under the STOCK Act since it was enacted on April 4, 2012.

1 The Stop Trading on Congressional Knowledge Act, Pub. L. No. 112–105, S. 2038, 126 Stat. 298 (2012).

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