Multi-input system that makes index-based adjustments

• US 8,484,117 B2
• Filed: 04/28/2010
• Issued: 07/09/2013
• 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.
• Primary Examiner(s): Hamilton, Lalita M
• Application Number:
  US12/769,093
• Publication Number:
  US 20100211526A1
• Time in Patent Office: 1,168 Days
• Field of Search: 705/35, 705/36.R, 705/37
• 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 using at least one computer processor;

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, using the at least one processor; and

for a class including at least one small business;

electronically receiving an index representative of the class;

storing data indicating an initial payout to each entity in the class using the at least one processor;

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

adjusting the at least one adjustable payment of each entity using the at least one processor 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.

3. The method of claim 2, further comprising:

issuing different ones of the shares for different classes from the set of classes.

4. The method of claim 2, further comprising:

managing a fund including the shares using the at least one processor.

5. The method of claim 4, wherein the at least one processor forms part of a fund management system.

6. The method of claim 2, further comprising:

electronically trading the shares using the at least one processor.

7. The method of claim 2, wherein the shares are traded via an electronic exchange system.

8. The method of claim 1, wherein the at least one small business includes entities that are not publicly traded.

9. The method of claim 1, wherein the at least one small business includes at least one entity representing at least one income stream.

10. The method of claim 1, wherein the at least one small business includes at least one joint venture.

11. The method of claim 1, wherein the at least one small business includes at least partnership.

12. The method of claim 1, wherein the at least one network includes the World Wide Web.

13. The method of claim 1, wherein the at least one network includes the Internet.

14. The method of claim 1, further comprising:

the at least one processor generating the index.

15. The method of claim 14, further comprising:

generating the index from information electronically received over the at least one network from one or more external sources.

16. The method of claim 1, wherein the index is a composite index.

17. The method of claim 1, further comprising:

the at least one processor applying a cap to the payment stream.

18. The method of claim 1, wherein the cap is an upper cap.

19. The method of claim 1, wherein the cap is a lower cap.

20. The method of claim 1, wherein one of the computer processors form a small business liquid securities system.