Privatization marketplace

• US 6,112,188 A
• Filed: 11/20/1995
• Issued: 08/29/2000
• Est. Priority Date: 10/30/1992
• Status: Expired due to Fees

• Current Assignee: William J. Hartnett
• Original Assignee: William J. Hartnett
• Inventors: Hartnett, William J.
• Primary Examiner(s): COSIMANO, EDWARD R
• Application Number:
  US08/436,219
• Time in Patent Office: 1,744 Days
• Field of Search: 395/235, 395/236, 395/237, 395/239, 705/35, 705/36, 705/37
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Computerized methods and tools for developing and implementing economic policies are provided. The methods and tools, which do not rely on advanced communications of financial market trading infrastructure, include the principal steps of preparing a privatization business plan (101) that includes an cost of the assets and a plan for distributing the assets. The review of the privatization plan by a Privatization Board (103). Executing the plan (105). Restructuring the enterprise in accordance to the plan (107). Submitting an application for certification of demonopolization to the Privatization Board (109). Receiving an effective demonopolization date from the Privatization Board (111).

Claims

1. A method to achieve widespread share ownership by aggregating rights to state owned assets, in the context of uncertainty and volatility in the value of said state owned assets, and in the context of constraints on investment sophistication and technical infrastructure, comprising the steps of:

implementing an endowment phase, said endowment phase comprising;

establishing entitlement criteria to a portion of a tranche of state owned assets with independently tradeable shares,

generating a list of portfolio owners according to said entitlement criteria,

endowing each portfolio owner on said list with a number of Stock Market Units according to said entitlement criteria, each Stock Market Unit consisting of a standardized portion of said tranche of state owned assets, and

selecting the state owned assets to be included in said tranche; and

implementing one or more investment cycles, each such investment cycle comprising;

a transaction collection phase during which transactions are collected from portfolio owners on said list and stored in a transaction data base suitable for processing by a digital computer system,

a transaction processing phase during which the transactions stored in the transaction data base are processed on a digital computer, and a disposition phase,

said transactions comprising;

bids and offers for Stock Market Units and shares of the assets represented in the Stock Market Units,

orders to sell an amount of one asset and use the proceeds of such sale to purchase another asset contingent on the ratio of the prices of the two assets, and

instructions to transfer portions of assets to financial institutions able to exercise custody or disburse cash balances,

the processing of said transactions comprising;

creating synthetic bids for Stock Market Units by aggregating bids for a set of assets represented in the Stock Market Units, said synthetic bids to be treated as alternative to the bids so aggregated,

iteratively calculating market-clearing prices which satisfy the largest amount by value of bids and offers, and

using approximate asset prices determined prior to the final iteration of the calculation of market-clearing prices in evaluating order contingencies, and

the disposition phase comprising;

execution of the instructions to transfer portions of assets to financial institutions able to exercise custody or disburse cash balances.

2. The method of claim 1, adapted to increase public support for the process of privatization by initiating the investment cycle process pending selection of the state owned assets to be included in said tranche.

3. The method of claim 1, where the state owned assets include one or more of tax proceeds, proceeds from bond issues, and newly created currency.

4. The method of claim 1, where part of the endowments of portfolio owners are segregated into social security accounts with restrictions on eligible transactions.

5. The method of claim 1, where the endowment of portfolio owners with Stock Market Units includes issuance of script.

6. The method of claim 1, where the transaction processing phase includes transactions submitted by means of the internet.

7. The method of claim 1, where the endowment of portfolio owners with state owned assets is to provide an equitable distribution of the state owned assets.

8. The method of claim 1, where the endowment of portfolio owners with state owned assets is to transfer a less risky composite portfolio.

9. The method of claim 1, where the endowment of portfolio owners with state owned assets is to avoid uncertainty in underwriting valuations.

10. The method of claim 1, where the endowment of portfolio owners with state owned assets is to reduce a burden on the government budget arising from subsidies to state enterprises and from social welfare payments.

11. The method of claim 1, where the disposition phase is to promote widespread accounts with private financial institutions.

12. The method of claim 1, where the endowment of portfolio owners with state owned assets is to provide microeconomic stimulus by providing capital for small private enterprises and macroeconomic stimulus by increasing household wealth and income.

13. The method of claim 1, adapted to promote a reliable market in delegated investment authority,

by including in said transactions:

orders to delegate investment authority to qualified delegatees, and

offers by qualified delegatees to accept investment authority, and

by including in the processing of said transactions;

integrating the calculation of market-clearing prices with clearing the submarket in delegated investment authority.

14. The method of claim 13, where the integrated submarket in delegated investment authority is to prevent fraud.

15. The method of claim 1, where the state owned assets are natural resource rights.

18. The method of claim 1, where the state owned assets are pollution rights.

19. The method of claim 18, where the pollution rights are sulfur dioxide emission permits.

20. The method of claim 18, where the pollution rights are greenhouse gas emission permits.

16. The method of 15, where the natural resource rights are rights to mineral deposits.

17. The method of 15, where the natural resource rights are rights to electromagnetic spectrum bandwidth.