METHOD AND APPARATUS FOR ENABLING INDIVIDUAL OR SMALLER INVESTORS OR OTHERS TO CREATE AND MANAGE A PORTFOLIO OF SECURITIES OR OTHER ASSETS OR LIABILITIES ON A COST EFFECTIVE BASIS

• US 20090276372A1
• Filed: 06/02/2009
• Published: 11/05/2009
• Est. Priority Date: 03/11/1998
• Status: Abandoned Application

• Current Assignee: Steven M.H. Wallman
• Original Assignee: Steven M.H. Wallman
• Inventors: Wallman, Steven M.H.
• Application Number:
  US12/476,628
• Publication Number:
  US 20090276372A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• 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
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

Smaller investors can create and manage on a cost-effective basis a complex portfolio of securities using a mechanism that enables the investor to provide to the system the investor'"'"'s preferences regarding his portfolio, to generate a portfolio, including fractional shares, that reflects the investor'"'"'s preferences. The system then permits aggregation of the orders, and netting of orders, generated by multiple investors at various times during the day for execution. In addition, the structure of the computer-based system of the present invention allows its cost to be based on access to or usage of the system (such as a monthly fee) as opposed to by securities orders entered into the system as per common brokerage. The result is that the investor can create a portfolio of directly owned securities with attributes, such as diversification, similar to a mutual fund.

Claims

1. A machine to manage an investment portfolio, comprising:

a) a processor programmed to;

i) receive from each of a plurality of investors a set of preferences for an investment portfolio;

ii) for each of the plurality of investors, select a plurality of market tradable assets or liabilities to be in such investor'"'"'s portfolio based on such investor'"'"'s preferences and manage such investor'"'"'s portfolio in accordance with market changes and changes in such investor'"'"'s preferences;

iii) receive a plurality of trading orders from among the plurality of investors, including at least an order for an odd lot of at least one market tradable asset or liability and an order for a single share of at least one market tradable asset or liability;

iv) aggregate on a daily basis all received trading orders into a single order for each market tradable asset or liability among the received trading orders; and

v) electronically forward the aggregated trading orders for execution to a third party.

b) memory coupled to the processor; and

c) a communication interface coupled to the processor through which the processor receives information from the plurality of investors.

2. The machine according to claim 1, wherein said aggregate on a daily basis is performed only one time during the day.

3. The machine according to claim 1, wherein said aggregate on a daily basis is performed at predetermined times during the day.

4. The machine according to claim 3, wherein said predetermined times during the day include market open, mid-day, and market close.

5. The machine according to claim 1, wherein said aggregate on a daily basis is performed at predetermined intervals during the day.

6. The machine according to claim 1, wherein said aggregate on a daily basis is performed after a predetermined amount of trading orders have been received.

7. A machine to manage an investment portfolio, comprising:

a) a processor programmed to;

i) receive from each of a plurality of investors a set of preferences for an investment portfolio;

ii) for each of the plurality of investors, select a plurality of market tradable assets or liabilities to be in such investor'"'"'s portfolio based on such investor'"'"'s preferences and manage such investor'"'"'s portfolio in accordance with market changes and changes in such investor'"'"'s preferences;

iii) receive a plurality of trading orders from among the plurality of investors, including at least an order for an odd lot of at least one market tradable asset or liability;

iv) aggregate on a daily basis all received trading orders into a single order for each market tradable asset or liability among the received trading orders; and

v) electronically forward the aggregated trading orders for execution to a third party.

b) memory coupled to the processor; and

c) a communication interface coupled to the processor through which the processor receives information from the plurality of investors.

8. The machine according to claim 7, wherein said aggregate on a daily basis is performed only one time during the day.

9. The machine according to claim 7, wherein said aggregate on a daily basis is performed at predetermined times during the day.

10. The machine according to claim 9, wherein said predetermined times during the day include market open, mid-day, and market close.

11. The machine according to claim 7, wherein said aggregate on a daily basis is performed at predetermined intervals during the day.

12. The machine according to claim 7, wherein said aggregate on a daily basis is performed after a predetermined amount of trading orders have been received.

13. A machine to manage an investment portfolio, comprising:

a) a processor programmed to;

i) receive from each of a plurality of investors a set of preferences for an investment portfolio;

ii) for each of the plurality of investors, select a plurality of market tradable assets or liabilities to be in such investor'"'"'s portfolio based on such investor'"'"'s preferences and manage such investor'"'"'s portfolio in accordance with market changes and changes in such investor'"'"'s preferences;

iii) receive a plurality of trading orders from among the plurality of investors, including at least an order for a single share of at least one market tradable asset or liability;

iv) aggregate on a daily basis all received trading orders into a single order for each market tradable asset or liability among the received trading orders; and

v) electronically forward the aggregated trading orders for execution to a third party.

b) memory coupled to the processor; and

c) a communication interface coupled to the processor through which the processor receives information from the plurality of investors.

14. The machine according to claim 13, wherein said aggregate on a daily basis is performed only one time during the day.

15. The machine according to claim 13, wherein said aggregate on a daily basis is performed at predetermined times during the day.

16. The machine according to claim 15, wherein said predetermined times during the day include market open, mid-day, and market close.

17. The machine according to claim 13, wherein said aggregate on a daily basis is performed at predetermined intervals during the day.

18. The machine according to claim 13, wherein said aggregate on a daily basis is performed after a predetermined amount of trading orders have been received.