An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Index Fund

An investment fund, like a mutual fund or an exchange-traded fund, that aims to match the performance of a specific market index (e.g., the S&P 500) rather than actively picking individual stocks.

Chinese Company

A company that is either created in China, has most of its assets or employees there, is owned or controlled by the Chinese government, or whose value heavily depends on another company that fits these descriptions.

Civil Penalty

A fine or monetary punishment imposed by a court or government agency for violating a law, which does not involve criminal charges or imprisonment.

Divestment Period Safe Harbor

A temporary period during which an entity can sell off prohibited investments without facing legal penalties.

Securities and Exchange Commission (SEC)

A U.S. government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets, and facilitating capital formation.

Hedge Fund

A private investment fund that uses a variety of strategies, including some considered high-risk, to generate returns for its investors, who are typically wealthy individuals or institutions. In this bill, it specifically refers to hedge funds that track an index.