Why This Data Matters
Members of the U.S. Congress have to publicly report their stock trades. This is because of a law called the STOCK Act, passed in 2012. The idea is that since politicians sometimes know about policies before the public does, their trades should be transparent.
Studies have shown that some congressional portfolios do better than average. While this doesn't prove wrongdoing, it makes their trades worth watching.
Company Insiders (Legal Trading)
CEOs, CFOs, and board members also have to report when they buy or sell their own company's stock. This is called insider trading — and when properly reported, it's completely legal.
Insider buying is usually a stronger signal than selling. People sell stock for all kinds of personal reasons (taxes, buying a house, diversifying). But they usually only buy when they truly believe the stock will go up. When multiple insiders buy around the same time, that's an especially strong signal.
How to Use It
Don't use this data alone. Combine it with other signals. Look for these patterns:
- •Multiple people trading the same stock in the same direction around the same time.
- •Big trades compared to the person's usual activity.
- •Trades that happen before major announcements or earnings reports.
- •Politicians trading in industries their committees oversee.
Keep in Mind
Congressional trades have a 45-day reporting delay, so by the time you see them, the stock may have already moved. Company insider reports (called Form 4 filings) are much faster — usually within 2 business days.
Not every trade is a useful signal. Focus on the big, unusual ones that line up with other data points like TrustScore changes.