Methods, systems and securities for assuring a company an opportunity to sell stock after a specified time
View Patent ↗Embodiments of the present invention relate to a method comprising: inputting data regarding the sale of a security consisting of: (i) a post-paid forward contract which obligates the second entity to purchase a fixed number of shares stock of the first entity; and (ii) debt; inputting data regarding the purchase, by the first entity from the second entity, of a pre-paid forward contract which obligates the second entity to deliver to the first entity a variable number of shares of stock in the first entity; inputting a then-current stock price associated with the stock of the first entity; calculating a number of shares underlying the pre-paid forward contract, based on a formula that is a function of a then-current stock price and a remaining maturity associated with the pre-paid forward contract; recording the data regarding the sale of the security; recording the data regarding the purchase, of the pre-paid forward contract; and recording the calculated number of shares.
1. A method implemented by a programmed computer system for use in connection with the sale of stock by a first entity, which method comprises the steps of:
inputting data regarding the sale, by the first entity to a second entity, of a security consisting of: (i) a post-paid forward contract which obligates the second entity to purchase a fixed number of shares stock of the first entity; and (ii) debt;
inputting data regarding the purchase, by the first entity from the second entity, of a pre-paid forward contract which obligates the second entity to deliver to the first entity a variable number of shares of stock in the first entity;
inputting a then-current stock price associated with the stock of the first entity;
calculating via the programmed computer system a number of shares underlying the pre-paid forward contract, based on a formula that is a function of the then-current stock price and a remaining maturity associated with the pre-paid forward contract;
recording the data regarding the sale, by the first entity to the second entity, of the security consisting of: (i) the post-paid forward contract; and (ii) the debt;
recording the data regarding the purchase, by the first entity from the second entity, of the pre-paid forward contract; and
recording the calculated number of shares underlying the pre-paid forward contract.