Patent ID: 8682774

Claim:
A computer-implemented method of creating a growth stock index and a value stock index for a universe of stocks, the method comprising: (a) defining a first set of criteria for ranking the stocks based on growth and inputting the first set of criteria into a processor; (b) selecting a growth hurdle for classifying the stocks as being growth stocks based on the ranking and inputting the growth hurdle into the processor; (c) defining a second set of criteria for ranking the stocks based on value and inputting the second set of criteria into the processor; (d) selecting a value hurdle for classifying the stocks as being value stocks based on the ranking and inputting the value hurdle into the processor; (e) executing a software program in the processor that (i) creates a growth stock index using the stocks that exceed the growth hurdle even if the stocks that exceed the growth hurdle also exceed the value hurdle; and (ii) creates a value stock index using the stocks that exceed the value index even if the stocks that exceed the value index also exceed the growth index, wherein selected value and growth stocks may be present in both the value and the growth index, and for the stocks present in both the value and growth index, the sum of their shares represented in the indexes does not sum up to the total shares represented in the universe of stocks.