Method and system for executing financial transactions via a communication medium

• US 20050187866A1
• Filed: 12/06/2004
• Published: 08/25/2005
• Est. Priority Date: 11/16/1999
• Status: Abandoned Application

• Current Assignee: Andre S. Lee
• Original Assignee: Andre S. Lee
• Inventors: Lee, Andre S.
• Application Number:
  US11/005,846
• Publication Number:
  US 20050187866A1
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A web-based method and system that facilitates business transactions, including the raising of capital in global financial markets via the Internet is described. Users of the system design, structure, analyze and execute business transactions over the Internet. Users of the system described include issuers, financial institutions, intermediaries, other professional advisors (law firms, accounting firms, translation agencies, etc.) and end investors. A security means controls access to the system and restricts access to the system to only qualified users. Users of the system design and diagram a transaction structure, assign corresponding attributes to the structure design. The structure design and corresponding attributes are stored in a database. The transaction is posted as a notice or interest onto the system, wherein a user maintains the posting. A database of user and transaction information is compiled and maintained. The user profile is compared with the posted transactions to identify transactions of interest to a user. The transaction information is communicated to the user. The transaction is executed, including issuing new securities or buying or selling previously issued securities through an auction or trade process. The system provides users direct access to its community, which includes, but is not limited to, issuers, investors, intermediaries, and advisors such as law firms, consultancy firms, accounting firms, and translation agents.

Claims

1. A method for executing business transactions, comprising:

designing a structure for a transaction diagrammatically and assigning corresponding attributes to the structure design;

creating and posting the transaction, wherein a user maintains control of the posting;

identifying a transaction of interest to a user; and

executing the transaction.

2. The method of claim 1, wherein the structure design is shared among users by providing access to the structure design to users of the system.

3. The method of claim 1, further comprising issuing new securities or buying or selling previously issued securities through an auction or trade process.

4. The method of claim 3, wherein new securities are issued through an on-line syndication.

5. The method of claim 3, further comprising:

drafting, preparing and finalizing documents to execute the transaction; and

conducting due diligence research on the transaction or on the issuer.

6. The method of claim 3, further comprising:

testing the structure design to evaluate the viability of the structure and identify potential issues of the transaction; and

communicating the test results and recommendations for modification of the structure to the user maintaining the posting.

7. The method of claim 6, wherein the testing comprises comparing the structure design and corresponding attributes against a database or data feed of market conditions, regulatory requirements or tax requirements.

8. The method of claim 6, further comprising modifying the structure design in accordance with the test recommendations.

9. The method of claim 3, further comprising analyzing a financial statement of a company or issuer to assess the company'"'"'s or issuer'"'"'s ability to meet the financial obligations of the transaction.

10. The method of claim 3, further comprising analyzing the effect of the transaction on a company'"'"'s or issuer'"'"'s financial statement.

11. The method of claim 10, wherein analyzing the effect of the transaction comprises generating projections of future financial statements to assess the credit risk of the company or issuer.

12. The method of claim 10, wherein analyzing the effect of the transaction comprises simulating the effect of financial instruments on the company'"'"'s or issuer'"'"'s financial statements.

13. The method of claim 10, wherein analyzing the effect of the transaction comprises superimposing the effect of an instrument'"'"'s cash flows on the company'"'"'s or issuer'"'"'s financial statements.

14. A method for raising capital by executing financial transactions on the Internet, comprising:

designing a structure for a transaction diagrammatically, assigning corresponding attributes to the structure design and storing the structure design and corresponding attributes in a database;

creating and posting the transaction, wherein a user maintains the posting;

compiling and maintaining a database of user information and transaction information;

comparing the user information with posted transaction information to identify transactions of interest to a user;

communicating transaction information to the user interested in the posted transaction; and

executing the transaction.

15. The method of claim 14, further comprising issuing new securities or buying or selling previously issued securities through an auction or trade process.

16. The method of claim 15, wherein the new securities are issued through an on-line syndication.

17. The method of claim 14, further comprising:

compiling and maintaining a database of transaction documents;

accessing a transaction document from the database or creating a transaction document;

drafting, preparing and finalizing documents to execute the transaction; and

conducting due diligence research on the transaction or on the issuer.

18. The method of claim 17, further comprising on-line collaborative drafting and negotiating of documents by users of the transaction.

19. The method of claim 17, further comprising:

selecting professional services through an on-line auction by providing invitations to bid to work on the transaction, the invitation communicated by a user to other users.

20. The method of claim 17, further comprising:

building an offering memorandum on-line by collating document files; and

on-line tracking of confirmations of approval of the offering memorandum from each user participating in the transaction.

21. The method of claim 17, further comprising:

on-line building of a business plan comprising document files; and

on-line tracking of status of files.

22. The method of claim 17, further comprising:

interactively assisting a user to generate the user'"'"'s final projections for a period of time into the future in the form of an income statement, balance sheet or cash flow statement.

23. The method of claim 14, further comprising:

compiling and maintaining a database or data feed of market conditions, regulatory or tax requirements;

testing the structure design to evaluate the viability of the structure and identify potential issues of the transaction by comparing the structure design and corresponding attributes against a database or data feed of market conditions, regulatory requirements or tax requirements;

communicating the test results and recommendations for modification of the structure to the user maintaining the posting; and

modifying the structure in accordance with the recommendations.

24. The method of claim 23, further comprising:

analyzing a financial statement of a company or issuer to assess the company'"'"'s or issuer'"'"'s ability to meet financial obligations of the transaction; and

analyzing the effect of the transaction on an issuer'"'"'s financial statement.

25. The method of claim 14, further comprising:

generating a bill for a completed transaction;

sending the bill to a user'"'"'s customer; and

providing a means for negotiating payment of bills between the user and the user'"'"'s customer.

26. An Internet-based system for raising capital by executing financial transactions, comprising:

workstations for receiving transaction information from users, and for displaying transaction information to users;

a database component operative to maintain a database of user information and transaction information;

a load-balancing mechanism to distribute load across the system;

a system server;

a security means, including a firewall and network segmentation; and

a communication means that transmits communications between the users of the system and the system server, including transaction information to the user interested in the transaction.

27. An Internet-based system for raising capital by executing financial transactions, comprising:

workstations for receiving transaction information from users, and for displaying transaction information to users;

a storage device;

a system server;

a processor programmed to;

maintain in the storage device a database of user information and transaction information,

compare the database of user information with the posted transaction information to identify transactions of interest to a user,

communicating transaction information to the user interested in the posted transaction; and

a communication means that transmits communications between the users of the system and the system server, including transaction information to the user interested in the posted transaction.

28. A computer readable medium having computer executable instructions for performing a method for raising capital by executing financial transactions comprising:

designing a structure for a transaction diagrammatically and assigning corresponding attributes to the structure design;

creating and posting the transaction, the posting maintained by a user;

identifying transactions of interest to a user; and

executing the transaction, including issuing new securities or buying or selling previously issued securities through auction or trade.

29. The computer readable medium of claim 28, wherein the new securities are issued through an on-line syndication.

30. A method for executing financial transactions on a Web-based system, comprising:

providing a security means for controlling access to the system, the security means also comprising means for restricting access of the system to qualified users;

designing a structure for a transaction diagrammatically, assigning corresponding attributes to the structure design and storing the structure design and corresponding attributes in a database;

testing the structure design against market conditions, regulatory or tax requirements;

creating and posting the transaction, wherein a user maintains the posting;

compiling and maintaining a database of user information and transaction information;

identifying transactions of interest to a user;

communicating transaction information to the user interested in the posted transaction; and

executing the transaction, including issuing new securities or buying or selling previously issued securities through auction or trade.

31. The method of claim 30, wherein the new securities are issued through an on-line syndication.

32. The method of claim 30, further comprising:

providing an invitation to participate in a transaction, the invitation communicated by an manager to another user; and

providing an acceptance of the invitation to participate in the transaction, the acceptance communicated by the other user to the manager.

33. The method of claim 30, further comprising:

a request for permission to participate in a transaction, the request communicated by another user to the user maintaining the posting; and

a grant for permission to participate in the transaction, the grant communicated by the user maintaining the posting to the other user.

34. The method of claim 30, further comprising:

providing an offer for sale of an allocation of securities, the offer communicated by the manager or arranger to a user participating in the transaction; and

providing an acceptance of the offer, the acceptance communicated by the user participating in the transaction to the manager.

35. The method of claim 30, further comprising:

a bid to buy an instrument for sale by auction, the bid communicated by a user to the user maintaining the posting;

a means for determining the highest bid;

a communication providing the highest bid to buy to the user maintaining the posting;

an acceptance of a bid, the acceptance communicated by the;

user maintaining the posting to the user communicating the bid to buy; and

an acceptance of the acceptance of the bid communicated by the user communicating the bid to buy to the user maintaining the posting.

36. A system for executing financial transactions on the Internet, comprising:

a system server;

means for storing data concerning users and transactions;

means for accessing data concerning transactions, capturing and processing data concerning the transaction attributes that are of interest to a user;

a communication means that transmits communications between the users of the system and the system server, including transaction information to the user interested in the transaction; and

means for executing the transaction, including issuing new securities or buying or selling previously issued securities through auction or trade.

37. A Web-based system for executing securities transactions comprising:

means for designing a structure for a transaction diagrammatically and assigning corresponding attributes to the structure design;

means for analyzing and testing the structure design against market conditions, tax or regulatory requirements;

means for posting the transaction;

means for identifying transactions of interest to a user; and

means for executing the transaction, including issuing new securities or buying or selling previously issued securities through auction or trade.

38. The Web-based system of claim 37, further comprising:

means for analyzing an issuer'"'"'s financial statements to assess the issuer'"'"'s ability to meet financial obligations of the transaction;

means for preparing and finalizing documents to execute the transaction; and

means for conducting due diligence research on the transaction or on the issuer.