Method and system for generating an index of securities

Abstract

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.

What is claimed is: 
     
         1 . A method of a computer system for generating an intellectual property index, wherein the computer system includes a processor configured to execute instructions of the method comprising the steps of:
 forming a list of a plurality of stocks;   selecting a range of stocks within the plurality of stocks to obtain selected stocks;   ranking the selected stocks based on their market capitalization to obtain a first set of ranked stocks, wherein the market capitalization of each stock of the selected stocks is calculated by multiplying stock shares outstanding and stock share price;   dividing the first set of ranked stocks into a plurality of groups to obtain a first set of grouped stocks;   ranking the selected stocks based on their price-to-book ratio to obtain a second set of ranked stocks;   dividing the second set of ranked stocks into a plurality of groups to obtain a second set of grouped stocks;   classifying each stock of the first set of grouped stocks and each stock of the second set of grouped stocks into a category of a plurality of categories based on the market capitalization and the price-to-book ratio of each stock to obtain categorized stocks;   ranking the categorized stocks in each category of the plurality of categories based on a ratio of a rating measure to the market capitalization to obtain ranked categorized stocks;   picking a certain number of ranked categorized stocks in each category of the plurality of categories to obtain index constituent stocks;   calculating an individual rating measure for each of the index constituent stocks;   summing all individual rating measures of the index constituent stocks to obtain a total rating measure;   assigning a weight to each of the index constituent stocks by dividing the individual rating measure by the total rating measure to obtain weighted index constituent stocks; and   formulating the intellectual property index using all weighted index constituent stocks.   
     
     
         2 . The method of a computer system for generating an intellectual property index according to  claim 1 , wherein the plurality of stocks are the S&P 1500 index. 
     
     
         3 . The method of a computer system for generating an intellectual property index according to  claim 1 , wherein the selected stocks are those with the most liquidity. 
     
     
         4 . The method of a computer system for generating an intellectual property index according to  claim 1 , wherein the first set of ranked stocks are ranked from largest market capitalization to smallest market capitalization. 
     
     
         5 . The method of a computer system for generating an intellectual property index according to  claim 1 , wherein the second set of ranked stocks are ranked from lowest price-to-book ratio to highest price-to-book ratio. 
     
     
         6 . The method of a computer system for generating an intellectual property index according to  claim 1 , wherein the categorized stocks include a plurality of largest stocks with a lowest price-to-book ratio categorized into a first category of the plurality of categories, a plurality of smallest stocks with a highest price-to-book ratio categorized into a second category of the plurality of categories, a plurality of smallest stocks with a lowest price-to-book ratio categorized into a third category of the plurality of categories, and a plurality of largest stocks with a highest price-to-book ratio categorized into a fourth category of the plurality of categories. 
     
     
         7 . The method of a computer system for generating an intellectual property index according to  claim 1 , wherein the rating measure is a patent rating measure. 
     
     
         8 . The method of a computer system for generating an intellectual property index according to  claim 7 , wherein the patent rating measure is one or more selected from the group comprising 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. 
     
     
         9 . The method of a computer system for generating an intellectual property index according to  claim 1 , wherein the individual rating measure is an individual patent rating measure. 
     
     
         10 . The method of a computer system for generating an intellectual property index according to  claim 9 , wherein the individual patent rating measure is one or more selected from the group comprising 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. 
     
     
         11 . The method of a computer system for generating an intellectual property index according to  claim 1 , wherein the plurality of categories are a plurality of boxes created by a grid comprising a vertical axis representing the market capitalization and a horizontal axis representing the price-to-book ratio.