Method and system for generating an index of securities
View Patent ↗A method for generating an index of securities includes selecting index constituents and weighing the selected index constituents by a measure (“an intangible asset measure”) of quality and/or value of the intangible assets of constituent entities. The index constituents can be selected from a set of potential constituents based on an intangible asset measure of each constituent in the set, and the selected index constituents may then be weighted by a desired measure or methodology or weighted equally, or by an intangible asset measure. Another method for generating an index of securities includes combining groups of constituents, which are selected based on an intangible asset measure, to be index constituents and weighing the index constituents by a desired measure or methodology.
1. A computer system method for formulating an intellectual property index, the method comprising the steps of:
selecting through instructions stored in a computer system one or more index constituents from a group of index constituents to obtain one or more selected index constituents, wherein said selecting step further comprises the steps of:
ranking each index constituent of the group of index constituents based on one or more measures of liquidity, size, and style to obtain ranked index constituents;
choosing the ranked index constituents that are within a specified percentage;
assigning through instructions stored in a computer system a weight value to each of the one or more selected index constituents using an intangible asset measure, wherein the intangible asset measure is a patent rating measure consisting of patent count, patent age, patent decay rate, patent velocity, patent flow, patent abandonment count, patent diversification, total patent forward cites, new patent forward cites, average intellectual property quotient, patent maintenance value, patent exchange value;
generating through instructions stored in a computer system a patent based index; and
displaying the patent based index on a display unit of the computer system.
2. The computer system method for formulating an intellectual property index according to claim 1 , wherein said assigning step further comprises the step of calculating a ratio of the patent rating measure of each of the one or more selected index constituents to the sum of the patent rating measures of all index constituents in the group of index constituents.
3. The computer system method for formulating an intellectual property index according to claim 1 , wherein two or more patent rating measures are combined, placed in relation to each other, or placed relative to asset information to produce additional metrics.
4. The computer system method for formulating an intellectual property index according to claim 3 , wherein the additional metrics are one more selected from the group of change in patent abandonment count, ratio of patent maintenance value to market capitalization, and ratio of patent maintenance value to research and development expenditures.
5. The computer system method for formulating an intellectual property index according to claim 1 , wherein the group of index constituents are from one or more existing indices.
6. The computer system method for formulating an intellectual property index according to claim 1 , wherein the measure of liquidity is determined by an average daily dollar volume traded on a particular date for each index constituent of the group of index constituents.
7. The computer system method for formulating an intellectual property index according to claim 1 , wherein the measure of size is determined by market capitalization for each index constituent of the group of index constituents.
8. The computer system method for formulating an intellectual property index according to claim 1 , wherein the measure of size is determined by sales for each index constituent of the group of index constituents.
9. The computer system method for formulating an intellectual property index according to claim 1 , wherein the measure of size is determined by net income for each index constituent of the group of index constituents.
10. The computer system method for formulating an intellectual property index according to claim 1 , wherein the measure of style is determined by price-to-book for each index constituent of the group of index constituents.
11. The computer system method for formulating an intellectual property index according to claim 1 , wherein the measure of style is determined by price-to-earnings for each index constituent of the group of index constituents.
12. The computer system method for formulating an intellectual property index according to claim 1 , wherein the measure of style is determined by dividend yield for each index constituent of the group of index constituents.
13. The computer system method for formulating an intellectual property index according to claim 1 , wherein the one or more selected index constituents are stocks.