Financial instrument and related business method

• US 8,799,133 B2
• Filed: 08/07/2007
• Issued: 08/05/2014
• Est. Priority Date: 11/26/2003
• Status: Active Grant

• Current Assignee: Excel Ventures LLC
• Original Assignee: Excel Ventures LLC
• Inventors: Gula, John IV
• Primary Examiner(s): CAMPEN, KELLY SCAGGS
• Application Number:
  US11/834,920
• Publication Number:
  US 20070271167A1
• Time in Patent Office: 2,555 Days
• Field of Search: 705/36.R, 705/35, 705/38, 705/39, 705/40, 705/44, 705/37
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A business method. A dividend is calculated from: (i) a penalty assessed against a holder, of at least one share of a financial instrument, who sells the at least one share on a date of sale preceding an extinguish date associated with the financial instrument; and/or (ii) a premium lost by other purchasers of the financial instrument who sell, on dates of sale preceding an extinguish date associated with the financial instrument, shares of the financial instrument purchased by the other purchasers, wherein a premium consisting of an upfront fee against a purchaser of one or more shares of the financial instrument is assessed against the purchaser which entitles the purchaser to a future portion of the premium lost. The dividend is distributed, on a date subsequent to the date of sale, to all Holders of Record of the financial instrument on the date of sale.

Claims

1. A business method, comprising:

assessing a penalty against a holder of at least one share of a financial instrument of an entity, said assessing the penalty against the holder being triggered by the holder selling the at least one share on a date of sale that precedes an extinguish date associated with the financial instrument, said assessing the penalty being performed in accordance with a penalty feature described in the financial instrument;

calculating, by a processor of a computer system, a dividend as a function of the penalty, said calculating the dividend being performed in accordance with a dividend feature described in the financial instrument; and

distributing the dividend, on a date subsequent to the date of sale, to all Holders of Record of the financial instrument on the date of sale.

2. The business method of claim 1, wherein the entity is a publicly held company, a privately held company, a corporation, or a combination thereof.

3. The business method of claim 1, wherein the financial instrument is a common stock, a preferred stock, a bond of, or a mutual find.

4. The business method of claim 1, wherein a portion of the dividend that is distributed to each holder of said all Holders of Record is proportional to a number of shares of the financial security held by each holder on the date of sale.

5. The business method of claim 1, wherein the dividend in is a form selected from the group consisting of cash, shares of the financial instrument, common stock of the entity, preferred stock of the entity, warrants of the entity, options on common stock of the entity, bonds of the entity, a debt instrument of the entity, or anther financial instrument of the entity.

6. The business method of claim 1, wherein the penalty is a constant percent of a market value of the at least one share on the date of sale.

7. The business method of claim 1, wherein the penalty is a time-varying percent of a market value of the at least one share over a period of time beginning on a date of purchase of the at least one share by said holder and ending on the date of sale.

8. The business method of claim 1, wherein is a function of an economic indicator, a market index, a floating interest rate, or a combination thereof.

9. The business method of claim 1, wherein an acquirer of a share of the financial instrument becomes a Holder of Record in relation to said share after elapse of a holding period that begins immediately after a date on which the acquirer acquires said share.

10. The business method of claim 1, wherein an acquirer of a share of the financial instrument becomes a Holder of Record in relation to said share on a date immediately after a date on which the acquirer acquires said share.

11. The business method of claim 1, wherein a holder of shares of the financial instrument cannot be a Holder of Record of said shares unless a condition is satisfied, wherein the condition is that the number of said shares is not less than a specified minimum number of shares or that an aggregate market value of said shares is not less than a specified minimum aggregate market value.

12. The business method of claim 1, wherein the financial instrument is adapted to be regulated by the Securities and Exchange Commission (SEC).

13. The business method of claim 1, wherein the financial instrument is adapted to be traded in a securities exchange or in an over-the-counter market.

14. The business method of claim 1, wherein the method further comprises said processor administering and/or tracking aspects of said financial instrument, said aspects being selected from the group consisting occurrences of the penalty and the dividend, purchases and sales of the financial instrument, accounting and bookkeeping relating to the purchases, sales, premiums, penalties, and dividends, and combinations thereof.

15. A business method, comprising:

assessing a premium consisting of an upfront fee against a purchaser of one or more shares of a financial instrument of an entity, wherein the premium assessed against the purchaser entitles the purchaser to a future portion of a premium lost by other purchasers of the financial instrument who sell, on dates of sale that precede an extinguish date associated with the financial instrument, shares described in the financial instrument purchased by the other purchasers, said assessing the premium being performed in accordance with a premium feature of the financial instrument;

calculating, by a processor of a computer system, a dividend as a function of the premium lost, said calculating the dividend being performed in accordance with a dividend feature described in the financial instrument; and

distributing the dividend, on a date subsequent to the dates of sale, to all Holders of Record of the financial instrument on the dates of sale.

16. The business method of claim 15, wherein the entity is a publicly held company, a privately held company, a corporation, or a combination thereof.

17. The business method of claim 15, wherein the financial instrument is a common stock, a preferred stock, a bond of, or a mutual find.

18. The business method of claim 15, wherein a portion of the dividend that is distributed to each holder of said all Holders of Record is proportional to a number of shares of the financial security held by each holder on the date of sale.

19. The business method of claim 15, wherein the dividend in is a form selected from the group consisting of cash, shares of the financial instrument, common stock of the entity, preferred stock of the entity, warrants of the entity, options on common stock of the entity, bonds of the entity, a debt instrument of the entity, or anther financial instrument of the entity.

20. The business method of claim 15, wherein the premium is a function of an economic indicator, a market index, a floating interest rate, or a combination thereof.

21. The business method of claim 15, wherein an acquirer of a share of the financial instrument becomes a Holder of Record in relation to said share after elapse of a holding period that begins immediately after a date on which the acquirer acquires said share.

22. The business method of claim 15, wherein an acquirer of a share of the financial instrument becomes a Holder of Record in relation to said share on a date immediately after a date on which the acquirer acquires said share.

23. The business method of claim 15, wherein a holder of shares of the financial instrument cannot be a Holder of Record of said shares unless a condition is satisfied, wherein the condition is that the number of said shares is not less than a specified minimum number of shares or that an aggregate market value of said shares is not less than a specified minimum aggregate market value.

24. The business method of claim 15, wherein the financial instrument is adapted to be regulated by the Securities and Exchange Commission (SEC).

25. The business method of claim 15, wherein the financial instrument is adapted to be traded in a securities exchange or in an over-the-counter market.

26. The business method of claim 15, wherein the method further comprises said processor administering and/or tracking aspects of said financial instrument, said aspects being selected from the group consisting occurrences of the premium and the dividend, purchases and sales of the financial instrument, accounting and bookkeeping relating to the purchases, sales, premiums, penalties, and dividends, and combinations thereof.