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

(a) Prohibition. 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 was one of the 10 entities awarded the most contract funds by the Department of Defense in a fiscal year during the five preceding fiscal years. (b) Exceptions. This section does not apply to purchasing or owning publicly traded stock of a company otherwise described in subsection (a) if: (1) the combined market value of the covered official’s holdings, and the holdings of the official’s spouse and minor children, in that company’s stock, both before and after the purchase, in the case of a purchase, does not exceed the “de minimis threshold” established in 5 C.F.R. § 2640.202(a)(2); or (2) the stock is purchased and owned as part of an “Excepted Investment Fund” or mutual fund. (c) Definitions. In this section: (1) “Covered official of the Department of Defense” means any of the following: (A) a civilian appointed to a position in the Department of Defense by the President, with the advice and consent of the Senate; or (B) if serving in a key acquisition position, as designated by the Secretary of Defense or the Secretary concerned for this section: (i) a member of the armed forces above grade O–6; or (ii) a civilian officer or employee in a Senior Executive Service, Senior-Level, or Scientific or Professional position. (2) “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.). This section does not define “de minimis threshold,” “key acquisition position,” “Senior Executive Service,” “Senior-Level,” or “Scientific or Professional position.”