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
First Claim
1. A computer implemented method using aggregation to enable a user to trade a plurality of market tradable assets or liabilities as part of a single, customizable investment portfolio comprising:
- modifying a desired overall characteristic of the single, customizable investment portfolio;
determining automatically, in response to said modifying, a plurality of necessary modifications to the single, customizable investment portfolio so that the single, customizable investment portfolio as modified has the desired overall characteristic;
creating an order to modify the single, customizable investment portfolio as a whole;
forwarding the trading order including a plurality of trades implementing the plurality of necessary modifications to the existing portfolio;
aggregating via computer for each of a plurality of distinct market tradable assets or liabilities within the trading order for the user with one or more trading orders of one or more other users, wherein said aggregating includes combining at least one trading order involving either a single share, an odd lot or a fractional share of at least one distinct market tradable asset or liability with other trading orders of said at least one distinct market tradable asset or liability; and
executing one or more trades of each of the distinct market tradable assets or liabilities resulting from said aggregating to implement the order received from the user, using a separate account with up to one share for each of the plurality of distinct market tradable assets or liabilities among a plurality of aggregated trading orders that included at least one fractional share order in said combining.
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Accused Products
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.
97 Citations
2 Claims
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1. A computer implemented method using aggregation to enable a user to trade a plurality of market tradable assets or liabilities as part of a single, customizable investment portfolio comprising:
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modifying a desired overall characteristic of the single, customizable investment portfolio; determining automatically, in response to said modifying, a plurality of necessary modifications to the single, customizable investment portfolio so that the single, customizable investment portfolio as modified has the desired overall characteristic; creating an order to modify the single, customizable investment portfolio as a whole; forwarding the trading order including a plurality of trades implementing the plurality of necessary modifications to the existing portfolio; aggregating via computer for each of a plurality of distinct market tradable assets or liabilities within the trading order for the user with one or more trading orders of one or more other users, wherein said aggregating includes combining at least one trading order involving either a single share, an odd lot or a fractional share of at least one distinct market tradable asset or liability with other trading orders of said at least one distinct market tradable asset or liability; and executing one or more trades of each of the distinct market tradable assets or liabilities resulting from said aggregating to implement the order received from the user, using a separate account with up to one share for each of the plurality of distinct market tradable assets or liabilities among a plurality of aggregated trading orders that included at least one fractional share order in said combining.
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2. A computer implemented method using aggregation to enable a user to trade a plurality of market tradable assets or liabilities as part of a single, customizable investment portfolio and to rebalance the single, customizable investment portfolio to comply with a user selectable risk/reward characteristic comprising:
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determining a plurality of modifications to make to the single, customizable investment portfolio so that the single, customizable investment portfolio as modified matches the user selectable risk/reward characteristics; creating an order to modify the single, customizable investment portfolio as a whole; transmitting the trading order including a plurality of trades implementing the plurality of necessary modifications to the single, customizable investment portfolio to a central controller over a computer network in response to a user clicking a command to do so; aggregating via computer for each of a plurality of distinct market tradable assets or liabilities within the trading order for the user with one or more trading orders of one or more other users, wherein said aggregating includes combining at least one trading order involving either a single share, an odd lot or a fractional share of at least one distinct market tradable asset or liability with other trading orders of said at least one distinct market tradable asset or liability; and executing one or more trades of each of the distinct market tradable assets or liabilities resulting from said aggregating to implement the order received from the user, using a separate account with up to one share for each of the plurality of distinct market tradable assets or liabilities among a plurality of aggregated trading orders that included at least one fractional share order in said combining.
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Specification