Patent ID: 7742964
Filing Date: 2010-06-22
Classification: G06Q

Abstract:
1. A method for providing a convertible financial instrument for raising capital by an issuing business, the convertible financial instrument structured to generate returns that are based on actual profits and capital gains of the issuing business and not on a pre-determined interest rate, the method uses a computer coupled to a database, the method comprising: issuing the convertible financial instrument having a conversion feature and a coupon return, the convertible financial instrument representing a non-equity ownership interest in the issuing business, the coupon return paid from at least one of profits and capital gains of the issuing business, the convertible financial instrument redeemable at a maturity date at a face value of the convertible financial instrument; storing data relating to the issuing business and the convertible financial instrument in the database; exercising the conversion feature upon reaching a conversion date, the conversion feature exercisable for converting the convertible financial instrument into a converted financial instrument representing an equity ownership interest in the issuing business; calculating, by the computer, a value for the converted financial instrument based on a predetermined formula and the data stored in the database; and converting the convertible financial instrument into the converted financial instrument based on the calculated value.