Patent ID: 7720736
Filing Date: 2010-05-18
Classification: G06Q

Abstract:
1. A method implemented at least partially in a programmed computer for sharing risk of loss among a plurality of equity investment instrument holders, the method comprising: identifying a plurality of at least three holders of equity investment instruments that desire sharing of a risk of loss, wherein the equity investment instruments of an individual holder are the same, while at the same time the equity investment instruments of each holder are diverse with respect to the equity investment instruments of other holders, forming a diversified set of equity investment instruments reflecting different and diverse industry sectors or industry subsectors, further wherein performance of the equity investment instruments of an individual holder is closely correlated because the equity investment instruments are the same and investment performance across holders is not closely correlated because the equity investment instruments of different holders reflect different and diverse industry sectors or industry subsectors; aggregating by the programmed computer, premiums to form a loss reduction fund, the premiums at least partially contributed by the plurality of holders; determining by the programmed computer, which of the plurality of holders incurred a loss in the respective equity investment instruments at a predetermined time, wherein some of the holders may incur a loss and other holders may not incur a loss; determining by the programmed computer, a loss threshold, wherein losses less than the loss threshold incurred by the holders that incurred a loss are not reimbursed and at least a portion of the losses greater than the loss threshold incurred by the holders that incurred a loss are reimbursed; determining by the programmed computer, losses incurred by the holders that incurred a loss, wherein the amount of loss from one holder may be different from the loss of another holder; and reimbursing by the programmed computer, at least a portion of the losses greater than the loss threshold incurred by the holders that incurred a loss, wherein reimbursement to a particular equity investment instrument holder is at least partially determined by the loss of the particular holder, with consideration for losses of the plurality of holders, where at least two holders with losses are at least partially reimbursed and other holders may not be reimbursed, and further wherein reimbursement of losses incurred by the holders either depletes the loss reduction fund or all losses incurred by holders are reimbursed from the loss reduction fund.