Method For Structuring An Obligation
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Abstract
A method for structuring an obligation. More particularly, a method for structuring an interest-bearing obligation which is convertible into stock.
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Citations
36 Claims
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1-17. -17. (canceled)
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18. A computer-automated method for conducting a transaction, comprising:
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setting a maturity date for an obligation issued by an issuer via a computer-automated system; setting an initial yield for the obligation, wherein the initial yield is applied to the obligation for an initial time period; setting a current yield for the obligation equivalent to one of a first reset yield and a second reset yield, depending upon a value of a share of a stock in relation to an accreted conversion price of the obligation; applying the current yield to the obligation after the initial time period has elapsed; converting the obligation into the stock according to a conversion formula; and making at least one payment based on the current yield; wherein the current yield is set essentially continuously on a real-time basis. - View Dependent Claims (19, 20, 21, 22, 23, 24, 25, 26, 27)
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28. A computer-automated method for conducting a transaction, comprising:
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setting a maturity date for an obligation issued by an issuer via a computer-automated system; setting an initial accretion rate for the obligation, wherein the initial accretion rate is applied to the obligation for an initial time period; setting a current accretion for the obligation equivalent to one of a first reset accretion rate and a second reset accretion rate, depending upon a value of a share of a stock in relation to an accreted conversion price of the obligation; applying the current accretion to the obligation after the initial time period has elapsed; converting the obligation into the stock according to a conversion formula; permitting the issuer to redeem the obligation according to a redemption formula; permitting a holder of the obligation to require the issuer to re-purchase the obligation according to a re-purchase formula; and making at least one payment based on the current accretion rate; wherein the current accretion rate is set essentially continuously on a real-time basis. - View Dependent Claims (29, 30, 31, 32)
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33. A computer-automated method for conducting a transaction, comprising:
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setting a maturity date for an obligation issued by an issuer via a computer-automated system; setting an initial yield for the obligation, wherein the initial yield is applied to the obligation for an initial time period; setting a current yield for the obligation equivalent to one of a first reset yield and a second reset yield, depending upon a value of a share of a stock in relation to an accreted conversion price of the obligation; applying the current yield to the obligation after the initial time period has elapsed; converting the obligation into the stock according to a conversion formula; and making at least one payment based on the current yield; wherein the current yield is set essentially continuously on a real-time basis; wherein at least one of the initial time period, the initial yield, the first reset yield, and the second reset yield has a value which depends upon a sliding scale. - View Dependent Claims (34, 35, 36)
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Specification