What is the 45-Day Disclosure Rule & Political Trade?
When it comes to investing, not everyone plays by the same timing rules. Big-time investors like hedge funds, and even members of Congress or other political figures, are required to disclose their trades—but not immediately 🔍
🕒 The 45-Day Rule (For Funds & Investors):
Certain large investors, like hedge funds, have to file reports (called 13F filings) within 45 days after each financial quarter ends. These filings show what stocks they held, but by the time you see it, those trades may be over a month old. That means if you try to copy them, you’re copying old news, not live strategies.
🏛️ What About Political Figures?
In the U.S., members of Congress have to disclose their trades too, under a rule called the STOCK Act. They must file a report within 30 to 45 days after making a trade. These reports are public, and some copy trading platforms or social media pages even track and share what politicians are buying and selling.
Some people try to copy the trades of political insiders, thinking they have access to important info. But remember:
1. These trades are delayed by weeks.
2.You don’t know why they made the trade or whether it was for personal or portfolio reasons.
3. Just because someone in power bought a stock doesn’t mean it’s a smart move now.
Test your knowledge
What is the 45 days rule?
Choose an option
What is insider trading?
Choose an option
What does political figures have to do when they buy or sell stocks?
Choose an option
Are these 45 days rule and Stock Act. law public information?