Method of creating new securities from equities: separately tradable registered independent dividend and equity securities ("STRIDES")
First Claim
1. A method of creating new securities from existing shares of common stock in one or more companies, the method comprising the step of:
- creating two new securities from the original common stock, said securities comprising an equity dividend strip and a nondividend paying stock.
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Accused Products
Abstract
Methods are disclosed for creating new types of securities, including equity dividend strips, equity dividend strip futures, equity dividend strip options, new index fund stocks, new mutual fund investments, and related securities are created in consideration of the cash dividends paid by companies issuing the original stock. Similar financial products are created for nondividend paying stock.
Additionally, the principles of the present invention can be employed to provide new corporate financing methods which make use of the aforementioned securities. An example of such a new method is the issuance of original common stock with a detachable dividend strip.
Purchase both and put the dividend strip into your retirement account.
Purchase both and donate the dividend strip to charity.
Give the dividend strip to a minor child, or a child in college.
The stock does not need to be paying dividends at the time the dividend strip is created. The dividend strip covers all future dividends, even if there are none now.
Investors can set dividend policy themselves, as long at the constraint is met: total dividends paid by company=total dividend received by security holders. Many security holders will have only stripped stock, or only stripped dividend.
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Citations
34 Claims
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1. A method of creating new securities from existing shares of common stock in one or more companies, the method comprising the step of:
creating two new securities from the original common stock, said securities comprising an equity dividend strip and a nondividend paying stock. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19)
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15. Equity dividend strips comprising:
a security which pays the security'"'"'s owner an amount calculated in consideration of actual dividends paid by one or more companies, said amount not being calculated in consideration of market value of underlying stock of said one or more companies.
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20. Shares with a detachable dividend strip comprising:
a security which allows its owner to separate and transfer ownership of ordinary cash dividend payments. - View Dependent Claims (21, 22, 23, 24, 26, 27, 28, 29)
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25. Nondividend paying shares comprising:
a security which has the characteristics of common stock except that the security'"'"'s specification does not provide for allowing payment of ordinary cash dividends to the security'"'"'s owner.
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30. Equity dividend strip futures or options comprising:
an exchange traded futures or options contract including terms which are determined in consideration of actual dividend payments on shares of common stock in one or more companies. - View Dependent Claims (31, 32, 33)
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34. Combining one or more detachable equity strips and one or more nondividend paying stocks to recreate one or more shares of a security originally issued with a detachable dividend strip.
Specification