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I don't understand how this would work. Owning stock is not some kind of investment only the elite have access to. What about people who worked at a company th

I don't understand how this would work. Owning stock is not some kind of investment only the elite have access to. What about people who worked at a company that gave them a few thousand dollars in equity compensation? Would they forced to sell their stock? Does this apply to an S&P 500 ETF, if so, why?

OJFord 5y ago
Presumably 'individual stock' is an inaccurate description, and the point is exactly not to apply to ('normal'/basket) ETFs. (But it's not trivial to define, since presumably you would want to ban 'Acme 3x Levered TSLA ETF' or short fund or whatever.)
desdiv 5y ago
>Would they forced to sell their stock? No, the proposed legislation does not affect your existing holdings you had before you become a Member of Congress, as long as you don't touch those holdings during your term of office. "Members would also have the option of retaining their existing investments while in office, so long as they do not trade them while in office, or transferring their holdings into a blind trust. [0]" >Does this apply to an S&P 500 ETF, if so, why? No, since the S&P 500 is not an individual stock. All broad-based investments are exempt. [0] https://krishnamoorthi.house.gov/media/press-releases/congressman-krishnamoorthi-calls-congress-ban-its-members-trading-individual https://krishnamoorthi.house.gov/media/press-releases/congre...