Method of defining an exchange-traded fund and computer product for generating real-time fund information

• US 20040049448A1
• Filed: 09/10/2003
• Published: 03/11/2004
• Est. Priority Date: 09/10/2002
• Status: Abandoned Application

• Current Assignee: Bob Glickman
• Original Assignee: Bob Glickman
• Inventors: Glickman, Bob
• Application Number:
  US10/659,694
• Publication Number:
  US 20040049448A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A new exchange-traded fund is provided. The method includes searching for publicly traded securities and a history of dividend yields associated with them, as well as an associated PE ratio. The securities are then sorted according to the amount of the associated dividend yields, and rated based on the dividend yields and, preferably, based also on their PE ratio. Several of the securities are then placed into the exchange-traded fund and shares in the exchange-traded fund are offered for sale. The fund can be traded in an e-commerce system through the Internet, within an intranet in a distributed system, or any of the conventional and traditional trading methods.

Claims

1. A method of defining an exchange-traded fund, which comprises:

searching for publicly traded securities and a history of dividend yields associated with the respective securities;

sorting the securities relative to an amount of the associated dividend yields, and rating the securities based on the associated dividend yields;

placing a plurality of the securities into the exchange-traded fund and weighting the individual securities within the exchange-traded fund in accordance with the associated dividend yields; and

offering for sale shares in the exchange-traded fund.

2. The method according to claim 1, wherein the searching step comprises also searching for a price-earnings ratio associated with the respective securities, and weighting the respective securities in the exchange-traded fund with the price-earnings ratio and the amount of the associated dividend yields.

3. A computer-readable medium having computer-executable instructions for performing the method according to claim 1.

4. A computer programmed to perform the method according to claim 1.

7. A computer-readable medium having computer-executable instructions for implementing the virtual securities broker according to claim 4.

5. A virtual securities broker for assisting a customer in generating and purchasing a dividend-weighted fund instrument from a merchant, comprising:

a database containing customer information with identification and preferences related to the customer;

a client system for prompting the customer to select a predefined set of dividend-yielding securities or to input parameters for a new search defining a new set of dividend-yielding securities;

a server system programmed to search, via the Internet, a current state of the predefined set of dividend-yielding securities or within the parameters entered in said client system by the customer and to transmit a search result to said client system; and

a purchase processing system, connected to said server system and adapted to receive a purchase order from the customer via said client system, for the dividend-yielding securities and to fill the purchase order.

6. The virtual securities broker according to claim 5, wherein said server system is configured to search for stocks including a stock price and a history of dividend distributions, said client system is configured to display to the customer a percentage dividend yield defined by a percentage ratio of past dividend distribution over a given period of time relative to the price of the security.

8. In an electronic commerce system having a computer system configured to search for securities, a history of dividend yields associated with the respective securities, and price-earnings ratios associated with the respective securities, a method of generating and offering for sale an exchange-traded fund, which comprises:

upon receiving an initiation request from a customer, checking a database containing customer information with identification and preferences related to the customer;

prompting the customer to select a predefined set of dividend-yielding securities or to input parameters for a new search defining a new set of dividend-yielding securities;

searching for securities matching the parameters associated with the set of dividend-yielding securities, placing a plurality of the securities into the exchange-traded fund, weighting the individual securities within the exchange-traded fund in accordance with the associated dividend yields, and rating the securities based on an amount of the associated dividend yields; and

offering for sale shares in the exchange-traded fund.

9. The method according to claim 8, wherein the searching step comprises also searching for a price-earnings ratio associated with the respective securities, and weighting the respective securities in the exchange-traded fund with the price-earnings ratio and the amount of the associated dividend yields.

10. A method of placing an order in a securities-trading system having a server system connected in a network and a client system connected to the server system, which comprises:

under control of the client system, prompting a user for input selecting from available securities with a history of dividend distribution;

under control of the server system, searching the network for securities matching the user'"'"'s search parameters and transmitting search results to the client system;

under control of the client system, displaying the search results to the user and prompting the user for further action, the further action including further input for a new search and placing a purchase order for a security or a collection of securities having a history of dividend distribution satisfying the user'"'"'s search parameters.

11. The method according to claim 10, which comprises prompting the user for input selecting either a predefined selection of dividend-yielding securities or a specific set of parameters for defining a new selection.

12. The method according to claim 10, wherein the specific set of parameters includes a percentage yield defined by a percentage ratio of past dividend distribution over a given period of time relative to a price of the security.

13. A computer system interconnected and programmed to perform the method according to claim 10.

14. A computer-readable medium having computer-executable instructions for implementing the method according to claim 10.