§988 Prohibition on Ownership or Trading of Stocks in Certain Companies by Certain Officials of the Department of Defense

Summary

A covered official of the Department of Defense may not buy or hold publicly traded stock in any company that was one of the 10 companies getting the most DoD contract money in a fiscal year during the five preceding fiscal years. Two exceptions apply: if the official’s, spouse’s, and minor children’s total holdings in that company are at or below the de minimis limit in section 2640.202(a)(2) of title 5, Code of Federal Regulations, or if the stock is owned through an Excepted Investment Fund or mutual fund. "Covered official of the Department of Defense" means (1) a civilian appointed by the President with Senate confirmation, and (2) if in a key acquisition job designated by the Secretary, a military member above grade O–6 or a civilian in the Senior Executive Service, Senior-Level, or Scientific or Professional positions. "Excepted Investment Fund" means a widely held fund described in section 102(f)(8) of the Ethics in Government Act of 1978 (5 U.S.C. App.).