Question 1

What does Watchdog detect?

Accepted Answer

Watchdog flags trades where a member of Congress buys or sells stock in a company whose industry falls under the jurisdiction of a committee they serve on. For example, a Senator on the Banking Committee buying shares of a bank.

Question 2

How does the detection work?

Accepted Answer

PolitAlpha matches each trade's stock to an industry using SEC SIC codes, then checks if the trading politician sits on a committee that oversees that industry. Matches are flagged automatically.

Question 3

Is congressional insider trading illegal?

Accepted Answer

The STOCK Act of 2012 explicitly prohibits members of Congress from using nonpublic information for personal financial gain. However, enforcement has been limited, and many trades that appear to conflict with committee duties are technically legal.

Question 4

How often is the Watchdog data updated?

Accepted Answer

Flagged trades are recalculated daily when new trades are imported from public congressional financial disclosures.