Systems and methods for conducting an interactive financial simulation

• US 20060010057A1
• Filed: 05/10/2005
• Published: 01/12/2006
• Est. Priority Date: 05/10/2004
• Status: Active Grant

• Current Assignee: Morgan Stanley Services Group Inc. (Morgan Stanley)
• Original Assignee: Morgan Stanley
• Inventors: Rowland, David, Bradway, Robert A., Smith, Simon, Tory, Michael, Turner, Stuart, Lefebvre, Thomas Henri, Woo, Wayne WF, Turner, Nicolas, Yap, Ryan
• Granted Patent: US 8,209,250 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method for conducting an interactive financial simulation. The method is implemented at least in part by a computer and includes transmitting an initial financial projection for a fictitious company, transmitting a news story, generating a new share price for the fictitious company based on an index, generating a new financial projection for the fictitious company based on a set of decisions selected for implementation by a participant of the interactive financial simulation, and generating a final share price for the fictitious company based on a final set of decisions selected for implementation by the participant.

Claims

1. A method for conducting an interactive financial simulation, the method implemented at least in part by a computer and comprising:

(a) transmitting an initial financial projection for a fictitious company;

(b) transmitting a news story;

(c) generating a new share price for the fictitious company based on an index;

(d) generating a new financial projection for the fictitious company based on a set of decisions selected for implementation by a participant of the interactive financial simulation; and

(e) generating a final share price for the fictitious company based on a final set of decisions selected for implementation by the participant.

2. The method of claim 1, wherein transmitting the initial financial projection includes transmitting at least one of the following:

a starting share price;

a starting credit rating;

a starting market capitalization;

a projected income statement; and

a year-end capital structure.

3. The method of claim 2, wherein transmitting the projected income statement includes transmitting projected figures for at least one of the following categories:

revenues for each division of the fictitious company;

earnings before interest, depreciation, tax and amortization for each division of the fictitious company;

earnings before interest and tax;

net interest expense;

earnings per share; and

free cash flow.

4. The method of claim 2, wherein transmitting the year-end capital structure includes transmitting the immediate funding need of the fictitious company.

5. The method of claim 4, wherein transmitting the year-end capital structure includes transmitting a short-term debt, a medium-term debt and a long-term debt of the fictitious company.

6. The method of claim 1, wherein transmitting the news story includes transmitting at least one of the following:

a business news story;

an economic news story;

a legal news story;

a legislative news story;

a political news story; and

a sports news story.

7. The method of claim 1, wherein generating the new share price includes generating the new share price based on at least one of the following:

a strategy score; and

a credit score.

8. The method of claim 1, wherein generating the new share price includes generating a plurality of new share prices.

9. The method of claim 1, further comprising transmitting the new share price after it is generated.

10. The method of claim 1, wherein generating the new financial projection includes:

prior to generating the new financial projection, receiving a request to implement at least one of the following;

a set of test decisions; and

a set of final decisions; and

transmitting the new financial projection after it is generated.

11. The method of claim 10, wherein generating the new financial projection includes, prior to receiving the request:

transmitting a list of decisions available for implementation; and

transmitting a rule that defines authorized combinations of the decisions.

12. The method of claim 10, wherein transmitting the new financial projection includes transmitting at least one of the following:

a revised projected income statement; and

a revised year-end capital structure.

13. The method of claim 1, wherein generating the new financial projection includes generating a plurality of new financial projections.

14. The method of claim 1, further comprising transmitting the final share price after it is generated.

15. The method of claim 1, further comprising repeating steps (b), (c) and (d) before generating the final share price.

16. The method of claim 1, further comprising generating and transmitting a final credit rating for the fictitious company.

17. The method of claim 1, further comprising transmitting the index.

18. A system for conducting an interactive financial simulation, the system comprising:

a server, wherein the server includes;

a financial module for generating financials of a fictitious company; and

a simulation module for directing the interactive financial simulation associated with the fictitious company.

20. The computer readable medium of claim 18, having further stored thereon instructions which when executed by a computing device, cause the computing device to generate and transmit a credit rating for the ficticious company.

19. A computer readable medium, having stored thereon instructions which when executed by a computing device, cause the computing device to:

transmit an initial financial projection for a fictitious company;

transmit a news story;

generate a new share price for the fictitious company based on an index;

generate a new financial projection for the fictitious company based on a set of decisions selected for implementation by a participant of an interactive financial simulation; and

generate a final share price for the fictitious company based on a final set of decisions selected for implementation by the participant.