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Ban on Insider Trading Before Public Company Announcements

New rules aim to prevent unfair stock trading by company directors and executives. They will be prohibited from buying or selling company shares before the company publicly announces significant events that could affect stock value. This is intended to increase market fairness and protect ordinary investors.
Key points
Prohibits company officers and directors from trading securities during the period between a significant event and its public disclosure.
Aims to prevent the use of confidential information for personal financial gain.
The Securities and Exchange Commission (SEC) has one year to issue detailed rules for this prohibition.
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Expired
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Additional Information
Print number: 117_S_2360
Sponsor: Sen. Van Hollen, Chris [D-MD]
Process start date: 2021-07-15
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

8–K Trading Gap Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_2360.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-07-15.

What are the main provisions?

Key points include:

  • Prohibits company officers and directors from trading securities during the period between a significant event and its public disclosure.
  • Aims to prevent the use of confidential information for personal financial gain.
  • The Securities and Exchange Commission (SEC) has one year to issue detailed rules for this prohibition.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Van Hollen, Chris [D-MD].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Economy Courts and Law