10 U.S.C. § 988: Prohibition on ownership or trading of stocks in certain companies by certain officials of the Department of Defense

Except as provided in subsection (b), a covered official of the Department of Defense may not own or purchase publicly traded stock of a company if that company is one of the 10 entities awarded the most amount of contract funds by the Department of Defense in a fiscal year during the five preceding fiscal years. If the aggregate market value of the holdings of the covered official, and the spouse and minor children of the covered official, in the stock of that company, both before and after purchase (in the case of a purchase), does not exceed the de minimis threshold established in section 2640.202(a)(2) of title 5, Code of Federal Regulations. If the stock is purchased and owned as part of an Excepted Investment Fund or mutual fund. A civilian appointed to a position in the Department of Defense by the President, by and with the advice and consent of the Senate. A member of the armed forces in a grade above O–6. A civilian officer or employee in a Senior Executive Service, Senior-Level, or Scientific or Professional position. The term “Excepted Investment Fund” means a widely-held investment fund described in section 102(f)(8) of the Ethics in Government Act of 1978 (5 U.S.C. App.). 1 1 See References in Text note below.