Patent ID: 8335732
Filing Date: 2012-12-18
Classification: G06Q

Abstract:
1. A method for pricing securities such as stocks, bonds, and related indices, composites, or derivative instruments using a general-purpose computer and one or more processors comprising: a. collecting and storing input data including historical data and optional projected data related to one or more securities; b. implementing a security pricing tool by said processor based on a security pricing model; c. computing by said processor a plurality of scenario prices and price indicators utilizing said input data for a plurality of time horizons for one or more securities as a function of a change in one or more factors affecting a security's price (P) from a group comprising of earnings per share (EPS), price to earnings (PE) ratio, or combinations and variations thereof, using the price equation P=EPS*PE and its partial differential form:  wherein ΔP is the expected price change, ΔEPS and ΔPE are measured, estimated, or projected change in earnings per share and price to earnings ratio, and EPS d. computing by said processor a Divergence indicator for a plurality of time horizons as a ratio of the target price spread ΔP  wherein ΔP e. computing by said processor a Velocity indicator for a plurality of time horizons, using the equation:  wherein vertical bars represent an absolute value of said target price spread at elapsed time t, and the direction of movement is indicated with a choice of sign, where Velocity represents the anticipated direction and speed of price movement; f. displaying saving, or retrieving one or more said security prices and price indicators via a provided user or client system interface.