MULTI-INPUT SYSTEM THAT MAKES INDEX-BASED ADJUSTMENTS

• US 20100211526A1
• Filed: 04/28/2010
• Published: 08/19/2010
• Est. Priority Date: 03/07/2003
• Status: Active Grant

• Current Assignee: Market Shield Capital, LLC
• Original Assignee: Market Shield Capital, LLC
• Inventors: Weiss, Allan N.
• Granted Patent: US 8,484,117 B2
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• 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 common index fund system and method enables investment in entities that is indexed to a common index, rather than individual company performance. For small business entities, the creation, issuance, trading and management of fund shares as a liquid investment may be accomplished with, for example, a relatively stable industry-based risk. The entities receive value from a pool and in return make payments into the pool in an amount that varies according to the index, which causes a corresponding change in the value of the shares.

Claims

1. A method that provides liquidity in a plurality of entities, the method carried out by a plurality of computer processors that interact over at least one network and are coupled to at least one computer memory, the method comprising:

defining the plurality of entities in the at least one computer memory;

designating, in the at least one computer memory, entities from the plurality of entities as belonging to one of a set of classes, wherein the entities include at least one small business; and

for a class including at least one small business;

receiving an index representative of the class;

storing data indicating an initial payout to each entity in the class;

computing a future payment stream owed by each entity in the class based on the initial payout to such entity, the future payment stream of each entity including at least one adjustable payment; and

adjusting the at least one adjustable payment of each entity in response to a change in the index relative to the performance of such entity.

2. The method of claim 1, further comprising:

issuing shares whose value is related to values of the future payment stream of each entity.