WO2001088657A2 - Systeme d'investissement a capital securise pour actionnaire - Google Patents

Systeme d'investissement a capital securise pour actionnaire Download PDF

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Publication number
WO2001088657A2
WO2001088657A2 PCT/US2001/015442 US0115442W WO0188657A2 WO 2001088657 A2 WO2001088657 A2 WO 2001088657A2 US 0115442 W US0115442 W US 0115442W WO 0188657 A2 WO0188657 A2 WO 0188657A2
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WO
WIPO (PCT)
Prior art keywords
principal
account
investor
sfund
interest
Prior art date
Application number
PCT/US2001/015442
Other languages
English (en)
Other versions
WO2001088657A3 (fr
Inventor
Richard Taylor
Original Assignee
Richard Taylor
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Richard Taylor filed Critical Richard Taylor
Priority to AU2001263092A priority Critical patent/AU2001263092A1/en
Publication of WO2001088657A2 publication Critical patent/WO2001088657A2/fr
Publication of WO2001088657A3 publication Critical patent/WO2001088657A3/fr

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Classifications

    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/04—Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Definitions

  • the sFund inven tion helps i nvestors mai ntain their principal by securing it and riski ng only thei r interest i ncome .
  • the essential purpose of the sFund system is to empower investors to own stocks without risking their principal. sFund investors will have secure holdings where the principal secures itself against loss. This invention can use ownership of a fluid money market to support a stock holding.
  • the sFund system also has the advantage of appealing to women investors since women prefer not to risk their principal.
  • This invention prevents loss of principal in the stock market while allowing stock investment in selected companies. This invention also protects participating stockholders from price fluctuations due to negative information such as a company bankruptcy.
  • the sFund system secures the principal and protects sFund investors from a crash where they would otherwise lose 20-40% of their stock price in one day.
  • Adding to the deception is the method of calculating mutual fund track records. Many track records were created from real transactions without public purchasing of the funds. A fund manager could create a 10- year track record, and never have the public in her group of investors. Fifteen years later this record, which no one investor could even own for ten years can become the fastest growing and largest fluid in the world. Even today, the track records of mutual funds are mere snap shots. While one fund reports a 15 percent upward movement, an actual participant might be down by 10 percent.
  • Fig. 1 is a Diagram of the sFUND system having only a Host Corporation
  • Fig. 2 is a Diagram of the sFUND system having a Trust Fund Management Company
  • the sFund holds the principal in trust managed on behalf of sFund investors.
  • the preferred embodiment of managing the sFund is to keep two accounts. One account is held in trust and maintains the principal. The other account holds the interest or unsecured assets.
  • the sFund can be implemented with just one account, but having a plurality of accounts is preferred.
  • the preferred embodiment is to have a managing trust company or a trustee hold the money of the sFund under an agreement with sFund investors.
  • the sFund is administrated as a money market fund, which provides a certain amount of income. Money can also be borrowed from the sFund to purchase stock.
  • the managing trust company may also allow the stockholder an emergency sale of stock with or without a penalty.
  • an sFund investor only risks the interest on the principal rather than the principal itself.
  • An ordinary stock buyer also gives up the right to earn interest on principal, and is no better off than an sFund investor.
  • An sFund investor may optionally invest a portion of unsecured principal 120.
  • the principal invested need not be placed in a money market account.
  • the principal could instead be used to purchase a zero coupon Treasury bill that would return the principal on a certain date. For example, 10% into the treasury bill would allow the stockholder to put 90% of her money into the stock and at the end of say 9 years also get her investment principal back.
  • the treasury bill approach would not allow stockholders access to their principal at all times, but rather at some time in the future. The benefit of waiting would be higher returns.
  • the sFund could also be paired with another fund so that the sFund investor has half her principal secured and the other half unsecured. While an investor could produce a 50/50 herself by buying two different funds, the Trust Management Company or seller of the sFund would benefit from additional business by offering different packages for different levels of risk tolerance.
  • One way to split the investment of the assets in the interest account is to allow the Host Company to combine its stock with another stock.
  • the Host Company could also mix their stock with an index fund like the QQQ index, comprised of the top 100 companies on the NASDQ. Liquidity sFund investors will be truthfully told that their assets are liquid. Pooling funds will give the stock liquidity.
  • stock sales requires a buyer and a seller. In smaller corporations, the difficulty finding buyers causes liquidity problems and prevents smaller corporations from attracting capital.
  • the preferred method of administrating withdraws is to allow them every six-months.
  • the total time period of the investment is preferably set at either 3 or 5 years. This would allow liquidity while maintaining a stable reserve of money. Having a commitment period also promotes investment over speculation.
  • the sFund program would be described in detail in the corporate prospectus. Also, insiders would be able to participate in the program when they elect to purchase shares on the open market, or purchase private placement shares.
  • the program itself can be implemented under various embodiments.
  • the embodiments below are ordered to show a natural progression and growth of the sFund system beginning from a small firm to a large stock exchange.
  • Fig. 1 A host company 130 could use the sFund system to raise funds for itself.
  • the company could sell a special class of shares called the sFund class, or sell bonds or notes.
  • the shareholder could then designate the percentage to be invested in the secured sFund account 101.
  • the sFund account would be a trust account and secured by its own principal 102.
  • the percentage invested into the principal could be invested as stocks, bonds, notes or any other legally recognized form.
  • the investor could also invest an optional unsecured amount to be placed in the interest account 120.
  • the principal generates interest or dividends 103 to be placed in the interest account 104.
  • Interest generates more interest 105.
  • the shareholder decides how much of the stock in the company she would like to buy 106.
  • the shareholder need not buy any amount of stock, and instead allow interest to accrue in the interest account
  • the stock having a secured principal would have a minimum price, which could be set as the par value of the sFund shares.
  • the stock may do well 107, allowing the stockholder to accumulate more interest and profits in the interest account 108.
  • the stock may do poorly 111 and the stockholder would lose only the money in the interest account 112.
  • the stockholder has the option to discontinue participation 109. If the stockholder discontinues investment 113, she is returned the value of the stock, bond or note that she purchased which would have a minimum of the amount of money in the principal account 114(a). The stockholder would also be given the stocks and the money in the interest account 114(b). Instead of cashing out, the investor will usually continue to invest and receive interest from the principal 110.
  • Fig. 2 A trust fund management company 250, also known as an sFund Management Company, could administrate the sFund system on behalf of a host company 230.
  • the sFund Management Company is denoted as a box with a double line in Fig. 2.
  • the Host Company 230 uses the sFund system to raise funds for itself.
  • the sFund Management Company sells sFund class shares of the Host Company 201.
  • the sFund share class produces interest to buy shares in the company 201.
  • the sFund Management Company could also sell sFund shares, try to sell notes, bonds or a money market type fund where the interest is used to purchase stock in the Host Company 230. If the shareholder wants to buy stock, the sFund Management Company would buy stock from the company and place it in the shareholder's interest account. Thus, the sFund Management Company would act as a broker.
  • the stock price will have a floor or minimum price. To increase risk, some investors could still buy stock 220 and place it in the interest account where it is unsecured 204. If the shareholder wants to sell the corporation
  • a managing trust company could operate the sFund system for many different corporations that want to raise money under the sFund system, by appealing to risk sensitive investors.
  • the trust company such as a bank, could receive deposits and apply the interest toward stock purchases. This is now feasible and easy to do because many institutions operate as both banks and brokerage firms.
  • Another embodiment of the sFund system is a mutual fund of sFund investments.
  • a mutual fund would simply be the conglomeration of various sFund shares from different companies. Instead of a managing trust company buying individual stocks for investors, a mutual fund could be set up. As before, investors deposit principal to generate interest used to purchase interest in a mutual fund. Also, stockholders could vote on what companies they want the mutual fund to buy. The vote could be non-binding and the mutual fund would know what companies' investors are interested in. The entire mutual fund could be dedicated to companies run under the sFund system.
  • a trading exchange like a stock exchange or bond market could be established for the sFund shares. Shares traded on an exchange can produce more interest to buy more shares in the company. An existing company could also, instead of selling the sFund class of shares, try to sell notes, bonds or a money market type fund where the interest is used to purchase stock in the company. All stock companies using the sFund method would be priced differently, because investors are secured from loss of investment capital.
  • the sFund system is different because it allows direct investment as opposed to investment through options.
  • the sFund system is also different because it provides permanent protection to stockholders for all companies that elect to participate. Connection to the sBounS system and method
  • the sBonu$ system basically gives a stockholder an additional benefit of getting an override on a particular industry sector in a company.
  • the override may be increased due to shareholder participation.
  • the word override here refers to a cash bonus payable on a percentage of the revenues or profits of a company for a particular industry sector. For example, a shareholder could get 3 percent of all sales of a particular brand of toys in a particular state.
  • sBONU$ is a system and method for providing a cash income source for shareholders.
  • the invention is adapted for implementation, in part, on a digital computer and the Internet.
  • the invention allows shareholders to earn a cash bonus through participation in qualifying programs. Instead of passively waiting around, a shareholder can register her shares with the corporation after purchase. Upon registration of shares, a shareholder is given sBONUS Opportunities in proportion to the number of shares purchased. The sBONU$ Opportunities can be cashed in to allow the shareholder to choose a distinct portion of the corporation's market.
  • This discrete market segment can be divided in any number of countless schemes such as geographically, demographically, along political boundaries, by product line, into zip codes, by area codes, by search queries in the case of a search engine, by flight routes in the case of an airline.
  • the shareholder then receives a cash bonus for qualified activities affecting that market segment. Examples of qualifying activities may include the shareholders signing up investors for that area, or signing up customers for that area.
  • the sBONU$ System is a departure from traditional mediocrity.
  • the securities laws provide for income without additional work, though stockholders have been given few alternatives to secure any additional cash income except dividends for themselves.
  • the prospectus given to potential inventors will clarify the scope of the income stream and the fact that work is not required of those investors. If necessary, a new prospectus can be drafted for each new program. Thus, the sBONU$ is operable.
  • Principal is placed in principal account also known as the secured sFund account. 102
  • Principal is placed in principal account also known as the secured sFund account. 202
  • Interest is placed in interest account. 204
  • Shareholder is returned the value of the stock having a minimum value equal to the money in the principal account.
  • Shareholder is returned the stocks and the money in the interest account.
  • Shareholder invests an optional amount of unsecured principal. 220 Host Corporation 230 Trust Fund Management Company 250

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  • Business, Economics & Management (AREA)
  • Accounting & Taxation (AREA)
  • Finance (AREA)
  • Engineering & Computer Science (AREA)
  • Development Economics (AREA)
  • Economics (AREA)
  • Marketing (AREA)
  • Strategic Management (AREA)
  • Technology Law (AREA)
  • Physics & Mathematics (AREA)
  • General Business, Economics & Management (AREA)
  • General Physics & Mathematics (AREA)
  • Theoretical Computer Science (AREA)
  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)

Abstract

L'invention concerne un procédé sFund destiné à investir et à préserver le capital d'un actionnaire. Ce procédé consiste à établir un compte capital, à déposer un capital d'investisseur dans un compte capital détenu en fiducie au bénéfice d'investisseurs sFund, à établir un compte d'intérêt, à déposer une somme optionnelle du capital non sécurisé dans un compte d'intérêt, ce qui permet aux investisseurs d'adapter individuellement leurs risques à leurs objectifs, à permettre au compte capital de générer un intérêt selon un accord passé entre l'investisseur sFund et un gestionnaire de ce sFund, à déposer l'intérêt issu du compte capital dans le compte d'intérêt, à investir l'argent contenu dans le compte d'intérêt, et à donner à un investisseur sFund la possibilité de retirer et d'emprunter de l'argent sur le compte capital et le compte d'intérêt, les investisseurs disposant ainsi de liquidités.
PCT/US2001/015442 2000-05-16 2001-05-10 Systeme d'investissement a capital securise pour actionnaire WO2001088657A2 (fr)

Priority Applications (1)

Application Number Priority Date Filing Date Title
AU2001263092A AU2001263092A1 (en) 2000-05-16 2001-05-10 Secured principal shareholder investment system

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
US57275900A 2000-05-16 2000-05-16
US09/572,759 2000-05-16

Publications (2)

Publication Number Publication Date
WO2001088657A2 true WO2001088657A2 (fr) 2001-11-22
WO2001088657A3 WO2001088657A3 (fr) 2003-03-06

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Family Applications (1)

Application Number Title Priority Date Filing Date
PCT/US2001/015442 WO2001088657A2 (fr) 2000-05-16 2001-05-10 Systeme d'investissement a capital securise pour actionnaire

Country Status (2)

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AU (1) AU2001263092A1 (fr)
WO (1) WO2001088657A2 (fr)

Citations (3)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5884285A (en) * 1987-04-15 1999-03-16 Proprietary Financial Products, Inc. System for managing financial accounts by reallocating funds among accounts
US6332132B1 (en) * 1997-06-27 2001-12-18 Richard G. Halpern Automated methods and apparatus for programmed periodic replenishment of principal with annual adjustment to future interest rates
US20020019793A1 (en) * 2000-08-04 2002-02-14 Nicholas Frattalone Method and system for implementing a combined investment

Patent Citations (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5884285A (en) * 1987-04-15 1999-03-16 Proprietary Financial Products, Inc. System for managing financial accounts by reallocating funds among accounts
US5911135A (en) * 1987-04-15 1999-06-08 Proprietary Financial Products, Inc. System for managing financial accounts by a priority allocation of funds among accounts
US6332132B1 (en) * 1997-06-27 2001-12-18 Richard G. Halpern Automated methods and apparatus for programmed periodic replenishment of principal with annual adjustment to future interest rates
US20020019793A1 (en) * 2000-08-04 2002-02-14 Nicholas Frattalone Method and system for implementing a combined investment

Also Published As

Publication number Publication date
AU2001263092A1 (en) 2001-11-26
WO2001088657A3 (fr) 2003-03-06

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