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The Stop Insider Trading Act amends federal ethics law to restrict stock ownership and trading by Members of Congress and their spouses and dependent children. Members and covered family members are prohibited from purchasing individual stocks or stock derivatives, though certain investments like diversified funds and small business interests are exempted. Any covered individual selling a stock must provide 7–14 days' public notice before the sale. Violations result in penalties of at least $2,000 or 10% of the transaction value (whichever is greater), plus any net gains realized, and forced divestment of illegally purchased securities.
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