Method and system for administering a discounted security
First Claim
1. A financial method comprising:
- determining a price of an underlying security at a first time;
calculating a discounted price of the underlying security using the price of the underlying security;
offering an exchangeable security at the discounted price; and
exchanging a share of the underlying security for a share of the exchangeable security at a second time, the second time after the first time.
3 Assignments
0 Petitions
Accused Products
Abstract
An exchangeable security, tradable on a securities exchange is issued at a share price that is a discount from the share price of an underlying security or basket of underlying securities. At or prior to maturity of the exchangeable security, a holder of the exchangeable security may exchange a share of the exchangeable security for a share of the underlying security or basket of underlying securities. The exchangeable security may also include a linked payment that is redeemable for the fall amount of the payment on maturity of the exchangeable security. Alternatively, the exchangeable security may be issued at the share price of the underlying security with the linked payment. The invention provides methods for issue, trade and redemption as well as systems for issue, trade and redemption of the security.
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Citations
56 Claims
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1. A financial method comprising:
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determining a price of an underlying security at a first time;
calculating a discounted price of the underlying security using the price of the underlying security;
offering an exchangeable security at the discounted price; and
exchanging a share of the underlying security for a share of the exchangeable security at a second time, the second time after the first time. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 19, 20, 21, 22, 23, 24, 25, 26, 27, 30, 31, 32, 33, 34, 35, 36, 37, 38)
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14. Computer executable software code transmitted as an information signal, the code for offering and exchanging an exchangeable security, the code comprising:
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code to determine a price of an underlying security at a first time;
code to calculate a discounted price of the underlying security using the price of the underlying security;
code to offer an exchangeable security at the discounted price; and
code to exchange a share of the underlying security for a share of the exchangeable security at a second time, the second time after the first time.
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15. A computer-readable medium having computer executable software code stored thereon, the code for offering and exchanging an exchangeable security, the code comprising:
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code to determine a price of an underlying security at a first time;
code to calculate a discounted price of the underlying security using the price of the underlying security;
code to offer an exchangeable security at the discounted price; and
code to exchange a share of the underlying security for a share of the exchangeable security at a second time, the second time after the first time.
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16. A programmed computer for offering and exchanging an exchangeable security, comprising:
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a memory having at least one region for storing computer executable program code; and
a processor for executing the program code stored in the memory;
wherein the program code comprises;
code to determine a price of an underlying security at a first time;
code to calculate a discounted price of the underlying security using the price of the underlying security;
code to offer an exchangeable security at the discounted price; and
code to exchange a share of the underlying security for a share of the exchangeable security at a second time, the second time after the first time.
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17. A method for offering and exchanging an exchangeable security, the method comprising:
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determining a market price of an underlying security or basket of underlying securities;
calculating a discounted price of the underlying security or basket of securities using the market price and a fixed or variable discount;
offering the exchangeable security at the discounted price;
receiving the exchangeable security at maturity of the exchangeable security; and
providing a share of the underlying security of basket of the underlying securities in return for the exchangeable security.
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18. A financial method comprising:
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determining a price of an underlying security at a first time;
calculating a discounted price of the underlying security;
offering an exchangeable security at the discounted price; and
prior to a maturity date of the exchangeable security, exchanging less than a full share of the underlying security for a share of the exchangeable security.
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28. A method for offering and exchanging an exchangeable security, the method comprising:
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determining a market price of an underlying security or basket of underlying securities at a first time;
calculating a discounted price of the underlying security or basket of securities;
offering an exchangeable security at the discounted price; and
prior to a maturity date of the exchangeable security, exchanging less than a full share of the underlying security or basket of underlying securities for a share of the exchangeable security.
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29. A financial method comprising:
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determining a price of an underlying security at a first time;
calculating a discounted price of the underlying security;
offering an exchangeable security at the discounted price; and
prior to a maturity date of the exchangeable security, exchanging a full share of the underlying security for a share of the exchangeable security.
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39. A method for offering and exchanging an exchangeable security, the method comprising:
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determining a market price of an underlying security or basket of underlying securities at a first time;
calculating a discounted price of the underlying security or basket of underlying securities;
offering an exchangeable security at the discounted price; and
prior to a maturity date of the exchangeable security, exchanging a full share of the underlying security or basket of underlying securities for a share of the exchangeable security.
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40. A financial method comprising:
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determining a price of an underlying security at a first time;
calculating a discounted price of the underlying security; and
issuing an exchangeable security at the discounted price, the exchangeable security including an exchange right on or after a second time, where under the exchange right, a holder of the exchangeable security may exchange a share of the exchangeable security for a share of the underlying security, the second time after the first time. - View Dependent Claims (41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52)
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53. A method for offering and exchanging an exchangeable security, the method comprising:
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determining a market price of an underlying security or basket of underlying securities at a first time;
calculating a discounted price of the underlying security or basket of underlying securities; and
issuing an exchangeable security at the discounted price, the exchangeable security including an exchange right beginning on a maturity date of the exchangeable securities, where under the exchange right, a holder of the exchangeable security may exchange a share of the exchangeable security for a share of the underlying security or the basket of underlying securities, the maturity date after the first time.
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54. A method comprising offering a share of an exchangeable security for sale on a securities exchange, where an issue price of a share of the exchangeable security is calculated at a time of issue of the exchangeable security as a discounted price of a share of an underlying security at the time of issue.
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55. A method comprising trading on a securities exchange a share of an exchangeable security, where an issue price of a share of the exchangeable security is calculated at a time of issue of the exchangeable security as a discounted price of a share of an underlying security.
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56. A method comprising redeeming at a second time, a share of an underlying security for a share of an exchangeable security, where the second time is after a first time, and an issue price of a share of the exchangeable security is calculated at the first time as a discounted price of a share of the underlying security.
Specification