The Lacuna Project

lacuna (n.) a gap in a record where something should be

Independent research. Not affiliated with any government, agency, or company.

Exhibit 766

Trading on Private Information: Evidence from Members of Congress

Exhibit 766 ยท Peer-reviewed study

Trading on Private Information: Evidence from Members of Congress

I also find that the positive abnormal returns disappear after the Stop Trading on Congressional Knowledge (STOCK) Act was passed in 2012.

Members' trades 2004-2010. Buy-minus-sell portfolios of powerful Republicans earn the highest abnormal returns; the returns disappear after the 2012 STOCK Act.

Source
Serkan Karadas, The Financial Review 54(1):85-131
Date
January 2019
Quoted from
Abstract (EconPapers copy)
Grade
Peer-reviewed
Document
https://doi.org/10.1111/fire.12180
Accessed
2026-11-09
Cited by
Findings citing this exhibit

Cited by

Finding POL-4.9
Peer-reviewed Karadas (2019) and Hall, Karadas and Schlosky (2017) found abnormal returns in members' trades in 2004-2010 concentrated among powerful members, and Karadas and Huang and Xuan (2018, a working paper on 2010-2013) found them absent after the 2012 Act.