WO2001026015A1

WO2001026015A1 - System and method for processing e-conditional offers for initial public offerings

Info

Publication number: WO2001026015A1
Application number: PCT/US2000/027816
Authority: WO
Inventors: Robert S. Smith
Original assignee: Fbr Investment Services, Inc.
Priority date: 1999-10-07
Filing date: 2000-10-10
Publication date: 2001-04-12
Also published as: AU8002200A

Abstract

A system and method for enabling submissions of electronic conditional offers-to-buy for an initial public offering is disclosed. The system may include a web site that enables users to view information (108) regarding one or more IPOs. The information may include a prospectus (114a) for a company offering an IPO. The user may access the web site using a terminal and create a conditional offer to buy shares of the IPO. The system may determine user eligibility and qualifications to submit offers to buy. The system may assign a user identification number and a confirmation number to the user, which is used to do trades. The system may forward notices to the user via electronic mail. The system may enable creation of classes of users for the offerings. After the offering is closed, the system determines the conditional offers to buy that meet the IPO criteria. The offers-to-buy are accepted randomly from the conditional offers-to-buy accepted. The system fills the offers-to-buy until all the shares are exhausted or all the offers are filled. The system notifies all the buyers who have reconfirmed and tells these buyers of when the offers-to-buy become effective. The system may tell the buyers and a trader responsible for the offering regarding when open trading may begin.

Description

SYSTEM AND METHOD FOR PROCESSING E-CONDITIONAL OFFERS FOR INITIAL PUBLIC OFFERINGS

FIELD OF THE INVENTION The invention relates to a system and method for processing information related to an initial public offering (IPO). More particularly, the invention relates to a system and method for opening and posting of IPOs, enabling buyers to submit, modify, and cancel conditional offers to-buy for the IPOs, close the IPOs, accept or deny the conditional offers-to-buy, and notify buyers of acceptance or denial of the conditional offers-to-buy.

BACKGROUND OF THE INVENTION

The proliferation of the Internet has facilitated electronic commerce. The number of on-line transactions has increased dramatically in recent years. On-line transactions such as purchasing goods or services, stock trading, applying for loans, etc. have become more prevalent. Although the Internet has facilitated such transactions, various types of other transactions remain difficult to conduct. Some transactions are difficult to undertake on the Internet because of government regulations or other restrictions. Some on-line transactions have other drawbacks. For example, users may not be notified of changes that affect an on-line transaction. Thus, users may not have an option to modify a purchase order, loan application, or other electronic request. Additionally, users may not be notified of an acceptance or denial of an electronic request in a timely manner. These and other drawbacks exist.

SUMMARY OF THE INVENTION

One object of the invention is to overcome these and other drawbacks. Another object of the invention is to provide a system and method for processing information related to electronic initial public offerings (IPO).

Another object of the invention is to provide a system and method for enabling buyers to inspect information related to IPOs and submit electronic conditional offers- to-buy for the IPOs.

Another object of the invention is to provide a system and method for enabling buyers to input information related to the conditional offers-to-buy.

Another object of the invention is to provide a system and method for determining, at various stages, whether a buyer is eligible or qualified to submit a conditional offer-to-buy.

Another object of the invention is to provide a system and method for notifying buyers of various information related to a conditional offer-to-buy.

Another object of the invention is to provide a system and method for enabling buyers to modify conditional offers-to-buy. Another object of the invention is to provide a system and method for enabling acceptance or denial of conditional offers-to-buy.

Another object of the invention is to provide a system and method for enabling electronic completion of a transaction regarding purchases related to IPOs.

Another object of the invention is to provide a system and method for enabling preferred buyer status for buyers of IPOs using predetermined classes.

According to one embodiment of the invention, a system and method for processing information related to electronic IPOs are provided. The system may include a web site that may enable a company to generate an offering. The offering may be posted on-line, for example, on a web page, for access by one or more potential buyers. The system may notify one or more buyers via electronic mail that an offering has been posted. The system may then enable the buyers to inspect information about the IPO. A buyer may submit a conditional offer-to-buy shares of the IPO, for example, in one-hundred (100) share increments. After a buyer has submitted a conditional offer-to-buy, the system may generate a notification identifying all or a portion of the information related to the conditional offer-to-buy which is transmitted to the buyer and/or indicating that the buyer may access the information by, for example, accessing a particular page on a web site. The system may notify the buyer of any changes to the offering that may affect that buyer's conditional offer-to-buy.

The offering may be posted for a predetermined period of time. After the predetermined period of time has expired, the system may prevent buyers from submitting additional conditional offers-to-buy. The system may then determine which conditional offers-to-buy meet a predetermined criteria for the IPO. The system may then determine whether the conditional offers-to-buy meeting the predetermined criteria for the IPO exceeds a maximum amount of shares eligible for purchase. The system may then determine which of the conditional offers-to-buy meeting the predetermined criteria for the IPO to accept. After determining which conditional offers-to-buy to accept, notifications may be sent to the buyers that submitted accepted conditional offers-to-buy. The notifications may include a congratulatory statement indicating that the conditional offer-to-buy has been accepted or a regrets statement indicating that the conditional offer-to-buy has been declined.

After a buyer has received a notification regarding acceptance of the conditional offer-to-buy, the buyer may be provided with an opportunity to cancel the conditional offer-to-buy. If the system determines that the buyer has requested cancellation of the conditional offer-to-buy, the system may cancel that buyer^'s conditional offer-to-buy. If the buyer does not request cancellation of a conditional offer-to-buy, the system may lock-in that buyer's conditional offer-to-buy.

After all conditional offers-to-buy have been accepted, a notification may be forwarded to each buyer indicating when open trading may begin. A trading notice may be forwarded to a trader responsible for the IPO to identify which conditional offers-to-buy have been accepted.

The system may also enable the creation of predetermined classes for IPOs. Predetermined classes may facilitate submissions of conditional offers-to-buy from one or more buyers. BRIEF DESCRIPTION OF THE DRAWINGS

Fig. 1A is a schematic block diagram of a method for submitting a conditional offer-to-buy according to one embodiment of the invention. Fig. IB is a schematic block diagram of a method for enabling users to submit a conditional offer-to-buy according to one embodiment of the invention.

Fig. 1C is a schematic block diagram of a method for enabling buyers to modify a conditional offer-to-buy according to one embodiment of the invention.

Fig. 2A is a schematic block diagram of a method for submitting a conditional offer-to-buy according to one embodiment of the invention.

Fig. 2B is a schematic block diagram of a method for submitting a conditional offer-to-buy according to one embodiment of the invention.

Fig. 3 is a schematic block diagram of a method for accepting conditional offers-to-buy according to one embodiment of the invention. Fig. 4 is a schematic block diagram of a method for modifying a conditional offer-to-buy according to one embodiment of the invention.

Fig. 5 is a schematic block diagram of a method for using predetermined classes with IPOs according to one embodiment of the invention.

Fig. 6 is a schematic block diagram of a method for notifying a buyer and trader that trading for an IPO is opened according to one embodiment of the invention.

Fig. 7 is a schematic block diagram of a method for processing closed IPOs according to one embodiment of the invention.

Fig. 8 is a schematic block diagram of a system for processing conditional offers-to-buy for an IPO according one embodiment of the invention. Fig. 9 is a schematic block diagram of a system for using predetermined classes associated with IPOs according one embodiment of the invention.

Fig. 10 is a schematic block diagram of a system for processing conditional offers-to-buy according to one embodiment of the invention. Fig. 11 is a schematic block diagram of a system for enabling buyers to modify conditional offers-to-buy according to one embodiment of the invention.

Fig. 12 is a schematic block diagram of a system for processing effective conditional offers-to-buy according to one embodiment of the invention.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS

The invention relates to a system and method for processing information related to an initial public offering (IPO). The system enables companies to post electronic notifications of IPOs, for example, on a website. Buyers may inspect the IPOs by accessing the website using any known manner and submit one or more conditional offers-to-buy using known electronic submitting techniques. The system determines whether the conditional offers-to-buy meet predetermined IPO criteria. If one or more conditional offers-to-buy meet the IPO criteria, the conditional offer-to- buy may be accepted. If a buyer does not cancel the conditional offer-to-buy within a predetermined time period, the conditional offer-to-buy may be locked-in and the buyer may receive requested shares of stock from the company IPO. The system may also provide notifications regarding acceptance or denial of conditional offers-to-buy, enable modifications of the conditional offers-to-buy, provide notification to traders that trading is open, and provide other IPO related information. The instant invention includes a suitability engine, a reconfirmation system, and an allocation system. The suitability engine, the reconfirmation system, and the allocation system are configured in a standard distributed environment or in a standard centralized environment to accommodate site, resource, and/or usage requirements. One or more of the suitability engine, the reconfirmation system, and the allocation system are in communication with a standard computer network. For example, the computer network includes the Internet or other existing or future communications network, such as the IPng (Internet Protocol next generation).

The instant invention includes a Dutch auction facility and/or a traditional IPO facility. The Dutch auction, for example, has no set price range per share. The customer sets or determines a number of shares to buy at various price levels, i.e., multiple indications of interest. For instance, in a Dutch auction, a customer submits an order for 100 shares at $20, and an order for 200 shares at $10. In a traditional IPO, in contrast, for example, the customer submits one indication of interest. By way of illustration, in a traditional IPO, the customer submits a market order, i.e., 1,000 shares at market price, or a limit order, . e. , 1 ,000 shares at no higher than $20.

Customers using the instant invention may include those in one or more of the following categories: friends and family of the IPO issuer's officers; those having an affinity affiliation relative to the issuer, such as preferred customers of the issuer; and members of the general public. The suitability engine correlates the suitability of a customer desiring to participate in an initial public offering ("IPO") with characteristics of the IPO.

By way of illustration, a customer profile or account application is generated or constructed for each customer. For example, customer profiles are generated by completing on-line forms on the web site of a user of the instant invention. Data from the completed forms is, for instance, transferred to the suitability engine or is stored in a standard database until needed and accessed by the suitability engine. Similarly, an IPO profile or description is also generated or constructed for an initial public offering. The customer profile includes criteria pertaining to the investment characteristics of the customer. The IPO profile includes criteria pertaining to the investment characteristics of a particular IPO. For example, the criteria for the profiles include data concerning statutory eligibility to account for certain individuals, who, for example, by law, are not permitted to participate in particular IPOs. The criteria, alternatively or in addition, includes investment objectives of the customer. The investment objectives, for instance, include the risk tolerance of the customer. The criteria, alternatively or in addition, include the customer's financial wherewithal, for example, as characterized by the customer's years of investing experience, liquid net worth, and/or annual income. Alternative units of time are acceptable. Each criterion includes a score for a customer. The maximum score for each criterion is the same. Alternatively, one or more criteria include respective maximum scores such that the one or more criteria are weighted less or more than the other criteria to indicate a lesser or greater import relative to the other criteria. Optionally, the criteria include scores relating to each of the categories of potential customers. For example, a customer, who is friend or family member of an issuer's officer is ranked higher than those having an affinity affiliation or those in the general public. A total or weighted score is generated from the values of the profile criteria. The total or weighted score of the customer profile is compared to that of the total or weighted score of the IPO profile. If the score of the customer profile meets the score of the IPO profile, then the customer is eligible to submit an electronic conditional offer-to-buy ("eCOB") for an upcoming IPO. The customer is so notified, for example, by e-mail or other method. Alternatively, all potential customers irrespective of eligibility are notified of an upcoming IPO and eligibility to participate in the IPO using the suitability engine is only determined for those responding to the notification.

The central computer, for example, receives eCOBs from eligible customers who wish to participate in the IPO. Subsequently, operation of the instant invention is transferred to the reconfirmation system, which sends or transmits to each customer, for which an eCOB has been received, a request to reconfirm the offer-to-buy within a time period before the effective date of the issue, for example, within forty-eight hours of the effective date. The reconfirmation system, for instance includes a front end e- mail server. By way of example, the request includes an e-mail having a secure link to a secure customer account web page or website screen to reconfirm on-line the conditional offer-to-buy. Upon reconfirming, the customer has effectively made an offer-to-buy allocated shares.

Thereafter, operation of the instant invention is transferred to the allocation system, which allocates shares among the reconfirmed customers. By way of example, the reconfirmed customers are ranked according to their score. Each customer is allocated a fixed number of shares until all customers have been allocated shares. Then, this step is repeated until each customer's order has been filled and/or until there are no more shares to be allocated.

Alternatively or in addition, the issuer determines the total number of shares allocated to customers in the friends and family category and/or the affinity affiliation category. By way of example, for a given total number of shares allocated to customers in the friends and family category, these shares are allocated by the allocation system to respective customers by computer-generated random selection, a pro-rata determination, and/or a person-by-person determination. Alternatively, prior to the ranking of the reconfirmed customers, the allocation system determines through computer-generated random selection a subset of those reconfirmed customers from the general public or all reconfirmed customers for allocation of shares. Alternatively, allocation of shares to the reconfirmed customers from the general public or all reconfirmed customers is provided to such reconfirmed customers on a first-come-first-serve basis by the allocation system.

Alternatively or in addition, allocation of shares is provided, at least in part, based on each customer's behavior in a last offering or previous offerings. For example, the allocation system determines whether a reconfirmed customer has a history of flipping, i. e. , participating in an IPO and immediately selling for a quick profit, thereby driving the share price of the IPO down. Flipping is optionally alternatively implemented in the suitability engine as a criterion in the customer and IPO profiles. Alternatively or in addition, allocation of shares is provided, at least in part, based on each customer's account size and/or account activity. Again, one or both characteristics are optionally alternatively implemented in the suitability engine as criterion or criteria in the customer and IPO profiles.

If conditional offers-to-buy are favorably recognized by law, no cancellation time need be given to reconfirmed customers. That is, upon the allocation of shares to a reconfirmed customer, a contract is made. Otherwise, upon the SEC declaring the IPO effective, i.e., when a price per share is defined and the effective date of the issuance is determined, the reconfirmation system, for example, permits reconfirmed customers to cancel their order within a cancellation period, after which the conditional offer-to-buy is deemed irrevocable and accepted upon filling of the order.

Fig. 1 A is an illustration of a method for submitting a conditional offer-to-buy according to one embodiment of the invention. The method may include a present IPO summary step 102. Step 102 may include presenting an IPO summary table 104 identifying information related to one or more IPOs. IPO summary table 104 may be presented on a computer monitor, terminal, mobile phone, personal digital assistant, or other device. IPO summary table 104 may include one or more fields 106A-106N. Field 106A may include a stock identifier identifying the stock being offered for the IPO. Field 106B may include a pricing date identifying the date on which the stock is priced. Field 106C may be a conditional offer-to-buy open date identifying the date on which conditional offers-to-buy may be submitted. Field 106N may include a conditional offer-to-buy close date identifying the last day on which conditional offers-to-buy may be submitted. IPO summary table 104 may also include a view/modify/cancel option 108. View/modify/cancel option 108 may be used to enable users to view, modify or cancel an outstanding conditional offer-to-buy.

The method may also include a present offering detail step 110. Step 110 may be initiated by a user by selecting a stock identified in field 106A. The stock may be presented as a hypertext link to the offering details for that IPO. If a buyer selects a stock, for example, by using a computer mouse or keyboard, voice recognition software, touch screen, light pen, etc., the buyer may be presented with one or more offering detail views 112A-112B. Offering detail views 112A-112B may provide a buyer with additional information regarding a sale of shares for the stock selected. Offering detail views 112A-112B may include prospectus options 114A-114B. Prospectus options 114A-114B may enable a buyer to view a prospectus of the company posting the IPO. A user may select prospectus options 114A-114B and be presented with options 116A-116B for presenting the prospectus in one of a plurality of views. For example, the buyer may elect to view the prospectus in a read-only format 116A or in a hypertext markup-language format 116B. Offering detail views 112A-112B may include conditional offer-to-buy options

118A-118B. Conditional offer-to-buy options 118A-1 18B may be used to request to submit a conditional offer-to-buy. If a buyer selects at lease one of conditional offer- to-buy options 118 A- 118B, the method may proceed to step 120 to determine whether the buyer is logged-in to the system. If a determination is made that the buyer is not logged-in, step 122 may enable the buyer to log-in. The buyer may log-in to the system using any know techniques, such as, for example, inputting a user identification and password. If the buyer is logged-in, step 124 may determine whether the buyer is statutorily qualified for submitting a conditional offer-to-buy for the IPO. This determination may be made by, for example, presenting the buyer with a series of inquiries regarding whether the buyer is a person that is statutorily disqualified from submitting a conditional offer-to-buy for one or more particular

IPOs. Examples of persons that may be statutorily disqualified are broker dealers, employees of a company offering the IPO, employees of another broker dealer, and family members of employees of the company offering the IPO.

A profile for the buyer may be used to maintain personal, historical or other information relating to a buyer. The profile may be used to assist a buyer with submitting a conditional offer-to-buy by not requiring input of information stored in the profile or merely asking the buyer to confirm stored information. The profile may be provided with a code identifying whether the buyer is statutorily disqualified from submitting a conditional offer-to-buy for one or more IPOs. The code may be, for example, a three (3) letter code. Various three (3) letter codes may be used to designate whether a buyer is statutorily disqualified from submitting a conditional offer-to-buy for one or more IPOs. The three (3) letter codes may be assigned, for example, as follows: ATB - new account, no restrictions; ATC - corporate account; ATE - offering company employee; ATK - custodial; ATM affinity; ATL - friends and family; ATP - partnership; and/or others. Depending on a code assigned to a buyer, the buyer may be statutorily disqualified from submitting a conditional offer-to- buy for an IPO. For example, step 126 may determine that a buyer has been assigned code ATE for a particular IPO. Therefore, by law, that buyer may not submit a conditional offer-to-buy for that IPO. If a determination is made that the buyer is not eligible to submit a conditional offer-to-buy for the IPO, step 126 may present the buyer with an ineligibility notification. The ineligibility notification may be, for example, a web page that advises the buyer of ineligibility. The web page may provide a telephone number, for example, for a customer service center for the system, that the buyer may call to inquire regarding the buyer's ineligibility or other purpose. If, however, a determination is made that the buyer is eligible to submit a conditional offer-to-buy, step 128 may determine a buyer's qualification.

Step 128 may include presenting the buyer with various requests for information. Requests may be for a buyer's net worth, income, investing experience, or other information. The buyer may input the information using any known manner.

Step 128 may assign a score to each category of information input by the buyer. Step 128 may then total the scores for each category of information. The total score may then be used for determining whether the buyer is qualified to submit a conditional offer-to-buy for the IPO. The determination may be made, for example, by comparing the total score for the buyer to a predetermined minimum IPO score.

The buyer score and IPO score preferably include a five (5) digit number. Each digit of the five (5) digit number may represent a different criteria. For example, the five (5) digits may represent a buyer's investment objective in the ten- thousandths column, liquid net worth in the thousandths column, annual income in hundredths column, years of investment in the tens, and weighted average of income in the ones column. Each criteria may assign a different value depending on a buyer's response. For example, investment objective values may be "1" for preservation of capital, "3" for equity, "5" for income, "7", and "9" for speculation. Liquid net worth values may be "0" for zero (0) income, "1" for at least ten-thousand ($10,000) dollars, "2" for at least twenty-five-thousand dollars ($25,000), "3" for at least thirty-seven- thousand-five-hundred dollars ($37,500), "4" for at least fifty-thousand dollars ($50,000), "5" for at least seventy-five-thousand dollars ($75,000), "6" for at least one-hundred-thousand dollars ($100,000), "7" for at least two-hundred-fifty-thousand dollars ($250,000), "8" for at least five-hundred-thousand dollars ($500,000), and "9" for over one-million dollars ($1,000,000). Annual income values may be "0" for zero

(0) income, "1" for at least five-thousand dollars ($5,000), "2" for at least fifteen- thousand dollars ($15,000), "3" for at least thirty-thousand dollars ($30,000), "4" for at least thirty-five-thousand dollars ($35,000), "5" for at least forty-thousand dollars ($40,000), "6" for at least forty-five-thousand dollars ($45,000), "7" for at least fifty- thousand dollars ($50,000), "8" for at least seventy-five thousand dollars ($75,000), and ninety-thousand dollars ($90,000). Years of investment values may be "0" for less than one (1) year, "4" for at least one (1) year, "5" for at least two (2) years, "6" for at least three (3) years, "7" for at least five (5) years, "8" for at least seven (7) years, and "9" for at least ten (10) years. Weighted average of income values may be determined by rounding a weighted sum of a buyer's income, liquid net worth, and years of investment. For example, weighting may be assigned as follows: income thirty (30) percent, liquid net worth sixty (60) percent, and years of investment ten (10) percent. Thus, a buyer score of 91433 indicates that the buyer's investment objective is speculation, liquid net worth is ten-thousand dollars ($10,000), annual income is thirty-five thousand ($35,000), one year of investment experience, and weighted average income is three (3). Therefore, if an IPO has a minimum score of

91322, the buyer score meets the IPO score and the buyer may be eligible to submit a conditional offer-to-buy.

Buyers scoring above the minimum score may automatically be qualified for submitting a conditional offer-to-buy for the IPO. Buyers scoring within a predetermined range below the minimum IPO score, may have their total scores reviewed by a system administrator. The system administrator may enable the buyer to submit a conditional offer-to-buy for the IPO even though the buyer scored below the minimum score. The system administrator may enable the buyer to submit the conditional offer-to-buy for a variety of reasons. For example, the system administrator may determine that the buyer's score is below the minimum score because of an error regarding information stored for that buyer.

If a determination is made that the buyer is not qualified for submitting a conditional offer-to-buy for the IPO, step 126 may present the buyer with an ineligibility notification. If the buyer is qualified for submitting a conditional offer-to- buy, step 130 may determine whether the buyer has already submitted a conditional offer-to-buy for the IPO selected. If a determination is made that the buyer has submitted a conditional offer-to-buy for the IPO selected, the method may enable the buyer to prepare a conditional offer-to-buy. If the buyer has already submitted a conditional offer-to-buy, step 132 may determine whether the buyer desires to modify the conditional offer-to-buy submitted. If the buyer requests to modify a conditional offer-to-buy, the method may enable the buyer to modify the conditional offer-to-buy. If the buyer does not desire to modify a conditional offer-to-buy, the method may return to step 102 and present IPO summary table 104 to the buyer.

Fig. IB illustrates a method for enabling a buyer to submit a conditional offer- to-buy if step 130 determines that the buyer has not submitted a conditional offer-to- buy. The method may continue with step 140 by presenting finders questions to the buyer. The finder's questions may include inquiring whether the buyer is a finder. The buyer may be presented with YES and NO options 142A-142B. The buyer may select one of the options 142A-142B and the option selected buyer response may be received in step 142. If a buyer selects YES option 142A, indicating that the buyer is a finder, the method may proceed to step 154. If step 142 determines that the buyer has selected NO option 142B, the prospectus for the company offering the IPO may be downloaded in a read-only, hypertext mark-up language, or other format in step 144. The prospectus may then be presented to the buyer in step 146. The buyer may also be presented with an inquiry regarding whether the buyer has read the prospectus. The buyer may select one of YES and NO options 150A-150B to indicate whether the prospectus has been read. Step 152 may determine the buyer response to the prospectus inquiry. If step 152 determines that the buyer has selected NO option 150B, step 154 may present an ineligibility notice advising the buyer that a conditional offer-to-buy may not be submitted. If, however, the buyer indicates that the prospectus has been read by selecting option 150A, the buyer may be presented with a view indicating any risks involved with IPOs in step 156. The buyer may be presented with agree and disagree options 158A-158B. The buyer may select one of options 158A-158B to indicate whether the buyer understands the risks involved with IPOs. Step 160 may be used to receive the buyer's selection of options 158A-158B. If the buyer selects option 158A, step 162 may enable the buyer to input information regarding a conditional offer-to-buy. The information regarding the conditional offer-to-buy may be the number of shares desired, a price limit, an affinity code, or other information. Preferably, buyers may only submit conditional offers-to-buy for shares in one hundred (100) share increments, although, any number or no minimum number of shares may be used. After a buyer inputs the conditional offer-to-buy information, step 164 may be used to receive the conditional offer-to-buy information. Step 166 may then be used to present a confirmation view requesting that the buyer confirm all information regarding the conditional to buy in step 166. Confirmation may be performed by enabling the buyer to select an "I confirm" (or other) option. Step 168 may be used to insert the conditional offer-to-buy information into a database for storing information related to IPOs. Step 170 may then used to provide the buyer with a conditional offer- to-buy identification. The identification may be used for logging-in to the system.

Fig. 1 C illustrates a method for modifying a conditional offer-to-buy according to one embodiment of the invention. If a buyer selects view/modify/cancel option 108 shown in Fig. 1 A, the method may proceed to step 180 to determine whether the buyer is logged-in. If a determination is made that the buyer is logged-in, step 182 may be used to present the buyer with all open conditional offers-to-buy. The conditional offers-to-buy may be presented as hypertext links that a buyer may select using, for example, a mouse or keyboard. If a buyer selects a conditional offer-to-buy, step 184 may enable the buyer to modify or cancel the conditional offer-to-buy selected. Step

186 may be used to determine whether the buyer has requested modification or cancellation of a conditional offer-to-buy. If the buyer has not requested modification or cancellation of a conditional offer-to-buy, step 188 may be used to present the conditional offer-to-buy.

If, however, the buyer has modified or canceled a conditional offer-to-buy, step 190 may be used to present a confirmation view to the buyer requesting confirmation of the modification or cancellation requested. Step 192 may be used to determine whether the buyer has confirmed a modification to the conditional offer-to- buy. If the buyer does not confirm the modification, step 188 may be used to present the conditional offer-to-buy. If the buyer confirms the modification, step 194 may be used to update a database to store information related to IPOs and/or to reflect the modification made to the conditional offer-to-buy. Step 196 may then be used to display the conditional offer-to-buy identification provided to the buyer. If step 180 determines that the buyer is not logged-in, step 198 may be used to enable the buyer to log-in to the system. After the buyer logs-in to the system, step 198 may return to step 180 for determination of whether the buyer has logged in.

Fig. 2A illustrates a method for submitting a conditional offer-to-buy for an IPO according to one embodiment of the invention. The method may include generate offering step 202. Step 202 may enable a company to generate an offering for shares of stock in the company. After an offering is generated, step 204 may determine whether the offering may be posted. If a determination is made that the offering may be posted, step 206 may post the offering. New offerings may be posted on, for example, a company web site. After an offering is posted, step 208 may generate a posting notification. Step 208 may include generating an electronic mail message (or other notification) to one or more buyers advising that an offering has been posted. Step 210 may forward the posting notification to the one or more buyers.

Step 212 may then enable submissions of conditional offers-to-buy. If one or more buyers submit a conditional offer-to-buy, step 214 may be used to receive the conditional offer-to-buy submission. After a conditional offer-to-buy has been received, step 216 may present an initial information request to the buyer. Initial information requested may include a buyer's income, net worth, experience, or other information. Step 218 may then be used to receive the initial information input by the buyer.

Step 220 may then be used to determine whether the buyer is eligible to submit a conditional offer-to-buy. Step 220 may determine whether a buyer is statutorily disqualified from submitting a conditional offer-to-buy. This statutory disqualification determination may be made, for example, as stated above. If step 220 determines that the buyer is not eligible to submit a conditional to buy, step 222 may be used to present the buyer with an ineligibility notice. The ineligibility notice may indicate why the buyer is not eligible to submit a conditional offer-to-buy. If, however, step 220 determines that the buyer is eligible to submit a conditional offer- to-buy, step 224 may be used to present a qualifying information request. A qualifying information request may include requesting a buyer's net worth, income, investment experience, or other information. After a buyer inputs qualifying information, step 226 may be used to receive the qualifying information as shown in Fig. 2B. After receiving the qualifying information, step 228 may be used to assign an identification to the buyer. After assigning a buyer identification, step 230 maybe used to determine whether the buyer meets one or more predetermined qualifications.

If a determination is made that the buyer does not meet one or more predetermined qualifications, step 232 may be used to present an unqualified notice to the buyer. The unqualified notice may indicate that the buyer may not submit a conditional offer-to-buy. If the buyer does meet the one or more predetermined qualifications, step 234 may be used to present a request for conditional offer criteria.

Conditional offer-to-buy criteria may include a number of shares the buyer wishes to purchase, a price range for each share the buyer is willing to purchase, and other information. Step 236 may then be used to receive the conditional offer-to-buy criteria from the buyer. After receiving the conditional offer-to-buy criteria, step 238 may assign a confirmation number to the conditional offer-to-buy. Step 240 may then be used to forward the conditional offer-to-buy information to the buyer. The conditional offer-to-buy information may be forwarded via electronic mail, overnight carrier, facsimile, or other mechanism.

Fig. 3 illustrates a method for accepting one or more conditional offers-to-buy for an IPO according to one embodiment of the invention. The method may include a determining step 302. Step 302 may determine whether a conditional offer-to-buy may be submitted. If a determination is made that a conditional offer-to-buy may be submitted, step 304 may be used to enable conditional offer-to-buy submissions. If a determination is made that conditional offers-to-buy may not be submitted, for example, a predetermined time period has expired, step 306 may disable conditional offer-to-buy submissions. After disabling conditional offer-to-buy submissions, step

308 may send re-confirmations to buyers of conditional offers-to-buy submitted. Step

310 may then be used to enable the buyers to reconfirm the conditional offer-to-buy.

In step 312, a determination is made regarding whether a buyer has reconfirmed a conditional offer-to-buy. If the buyer has not reconfirmed a conditional offer-to-buy, for example, after a predetermined period of time, a reconfirmation request may be sent in step 308. If the buyer reconfirms the conditional offer-to-buy, step 314 may be used to update the conditional offer-to-buy information.

After a determination is made regarding whether one or more conditional offers-to-buy meet a predetermined criteria for the IPO, step 314 may use a random lottery selection to determine which conditional offers-to-buy are to be accepted. For example, step 314 may select the first one-hundred (100) conditional offers-to-buy submitted, every other conditional offer-to-buy submitted, or other method of selection. If additional shares of stock for the IPO are available after the random lottery selection process, the system may use the same or another random selection process for accepting additional conditional offers-to-buy or may use a non-random type of selection process. The process may continue until all conditional offers-to-buy are accepted, the number of shares offered has been exhausted, or other reason.

Step 316 may then be used to determine whether any of the conditional offers- to-buy meet an IPO criteria. If a determination is made that none of the conditional offers-to-buy submitted meet the IPO criteria, step 318 may notify the buyers that the conditional offer-to-buy submitted by that buyer does not meet the IPO criteria. If a determination is made that at least one conditional offer-to-buy meets the IPO criteria, step 320 may be used to accept that conditional offer-to-buy. Step 322 may then be used to fill the conditional offers-to-buy accepted. The conditional offers-to-buy may be filled by allocating all or a portion of the shares requested by the buyer that submitted the conditional offer-to-buy.

Step 324 may then be used to determine whether all conditional offers-to-buy accepted have been filled. If all of the conditional offers-to-buy accepted have not been filled, the method may return to step 320 to accept additional conditional offers- to-buy. If all of the conditional offers-to-buy accepted have been filled, step 326 may be used to generate buyer notifications. The buyer notifications may include a congratulatory message indicating that a buyer's conditional offer-to-buy has been accepted or a regrets message indicating that the buyer's conditional offer-to-buy has been declined. Step 328 may then forward the buyer notifications to the buyer. After forwarding the buyer notification to the buyers, step 330 may be used to determine whether a buyer desires to cancel a conditional offer-to-buy. If a determination is made that the buyer does not desire to cancel the conditional offer-to-buy, step 332 may lock-in the conditional offer-to-buy. If the buyer desires to cancel the conditional offer-to-buy, however, step 334 may be used to determine whether the buyer has requested cancellation within a pre-determined time period. If the buyer has not requested cancellation within the predetermined time period, step 332 may lock-in that buyer's conditional offer-to-buy. If the buyer has requested cancellation within the predetermined time period, step 336 may cancel that buyer's conditional offer-to- buy.

Fig. 4 is an illustration of a method for modifying a conditional offer-to-buy according to one embodiment of the invention. The method may include a determining step 402. Step 402 may determine whether an offering window has expired. The offering window may be, for example, a period of time, such as two (2) weeks, in which buyers may submit conditional offers-to-buy. If step 402 determines that the offering window has expired, step 404 may close the offering. If the offering window has not expired, step 406 may enable buyers to modify conditional offers-to- buy.

Step 408 may be used to determine whether a buyer has requested a modification to a conditional offer-to-buy. A buyer may request modification by accessing the conditional offer-to-buy and selecting a modification option associated with the conditional offer-to-buy. If the buyer has not requested a modification, the method may return to step 402. If a buyer requests a modification, step 410 may be used to determine whether the conditional offer-to-buy has been outstanding for greater than a predetermined period of time, for example, five (5) days. If the conditional offer-to-buy is greater than five (5) days old, step 412 may be used to generate an invalid conditional offer-to-buy notification. The invalid conditional offer-to-buy notification may indicate that the conditional offer-to-buy is greater than five (5) days old, and therefore, is no longer valid. Step 414 may then be used to forward the invalid conditional offer-to-buy notification to the buyer. The invalid conditional offer-to-buy notification may be forwarded using any known manner, for example, electronic mail, facsimile, overnight carrier, regular mail, or other method. If the conditional offer-to-buy is not greater than five (5) days old, step 416 may be used to present the buyer with one or more modification options. The buyer may select one or more modification options to be applied to the conditional offer-to- buy. For example, the buyer may request a change in a number of shares to be purchased, a price range for each share, or other modification. The modification options may be presented in a variety of formats. For example, the buyer may be presented with a pull-down menu that the buyer may use to select one or more modification options, and using, for example, selectable radio buttons adjacent each modification option, the user may manually input one or more modification options, or other procedure.

Step 418 may be used to receive the one or more modification options selected or input by the buyer. Step 420 may then be used to modify the conditional offer-to- buy according to the modification option(s) selected or input by the buyer. After modifying the conditional offer-to-buy, step 422 may be used to determine whether the buyer has requested additional modifications. If the buyer has requested additional modification, the method may return to step 416 and present the buyer with one or more modification options. If the buyer has not requested additional modifications, step 424 may be used to generate updated conditional offer-to-buy information. The updated conditional offer-to-buy information may include the modification(s) selected or input by the buyer. Step 426 may then forward the updated conditional offer-to- buy information to the buyer using any known method.

Fig. 5 is an illustration of a method for using predetermined classes associated with IPOs. The method includes step 502 that enables a user to create a predetermined class program. The predetermined class may provide one or more benefits to buyers that are members of the class. These benefits may not be available to all buyers eligible to submit a conditional offer-to-buy for that IPO. For example, the predetermined class may be for friends and family. A number of shares of the IPO may be reserved for friends and family. Step 502 may create a separate offering details view for friends and family included in the predetermined class. The separate offering details view may be a particular web page of a website, for example. Step

504 may generate a predetermined class notification for advising buyers that are members of the class that they are included in the predetermined class. The buyers may then be notified of admittance to the specialty program in step 506 by forwarding the predetermined class notification to the buyers. The buyers may be notified via electronic mail, facsimile, or other mechanism. Step 508 may then enable those buyers admitted to the predetermined class to access the offering details view associated with the specialty program. Step 508 may require a buyer indication or other identification mechanism, for example, a cookie, to determine whether access to a predetermined class should be given to a particular buyer. Step 510 may provide buyers with an indicator identifying the one or more predetermined classes of which the buyer is a member. One advantage to predetermined classes is that qualifying information that may be asked of non-member buyers may be disabled for predetermined class members in step 512. Therefore, buyers within a predetermined class may not be required to input qualifying information. Additionally, reconfirmation of conditional offers-to-buy may be disabled. Reconfirmations for offering changes, however, may still be used. For example, buyers in a predetermined class may be requested to reconfirm a conditional offer-to-buy if a price range for an IPO changes, a new prospectus is available, the IPO is going to be delayed, or other factor.

Fig. 6 illustrates a method for advising buyers of an accepted IPO. In step 602, an open trading notice may be generated. The open trading notice may be forwarded, in step 604, to buyers whose conditional offers-to-buy were accepted. In step 606, the open trading notice may be forwarded to a trader who manages trading of shares for the IPO.

According to one embodiment of the invention, the system maintains an audit trail of information relating to IPOs. For example, a system may maintain information regarding when a conditional offer-to-buy was submitted, the terms of the conditional offer-to-buy, when reconfirmation or other notices were forwarded to the buyer, whether and when a buyer reconfirmed or modified a conditional offer-to-buy, or other information. The audit trail may be reviewed when allocating shares of the IPO. A system administrator may use the information provided in the audit trail to determine whether a number of shares requested by a buyer should be increased or decreased, for example.

One advantage of the invention is that notifications generated include messages that are pre-approved by the Securities Exchange Commission (SEC). Additionally, the procedures used for presenting offerings, enabling submissions of conditional offers-to-buy, modifying conditional offers-to-buy, accepting conditional offers-to-buy, and other methods used that are related to IPOs may be pre-approved by the SEC. Pre-approval by the SEC enables registrations related to IPOs to be effective without requiring additional steps. Fig. 7 is an illustration of a method for processing closed IPOs in accordance with one embodiment of the invention. The method may include a present main menu step 702. The main menu may identify one or more closed IPOs. The main menu may include a plurality of options enabling a system administrator or other system user to perform various operations relating to conditional offers-to-buy and IPOs. The IPOs identified in the main menu may be provided as selectable links enabling a system administrator or other system user to, for example, view, reject, reallocate shares, etc. of one or more conditional offers-to-buy for a closed IPO. Step 704 may be used to receive a closed IPO selection. A system administrator or user may then be presented with one or more conditional offers-to-buy that were accepted for the IPO in step 706. Step 708 may then be used to enable the system administrator or user to modify one or more conditional offers-to-buy for the IPO. If one or more conditional offers-to-buy are modified, step 710 may be used to confirm a conditional offer-to- buy. Step 710 may include generating a confirmation notice to other system administrators or users, forwarding the confirmation notice to other system administrators or users, and receiving a response to the confirmation notice from the other system administrators or users. If a response is received, step 712 may be used to update a database that stores information regarding the IPO. Step 714 may then be used to prepare a notification to the buyer of the updated conditional offer-to-buy. The notification may be a trading file, for example, in ASCII format, that indicates when open trading for shares of the IPO begins and/or possibly other information.

The method may also include a FTP export script step 716. FTP export script step 716 may be used to forward the trading file to the buyer. Step 718 may then be used to notify a trader or others, if necessary, that a conditional offer-to-buy has been updated.

Fig. 8 illustrates a system 800 for processing information related to IPOs according to one embodiment of the invention. System 800 may include IPO creating module 802. IPO creating module 802 may be used to enable a system administrator or user to create an IPO for providing information regarding one or more IPOs to be posted. A posting determining module 804 may be used to determine whether the IPO created may be posted. If a determination is made that the offering may be posted, posting module 806 may be used to post the offering. The offering may be posted on, for example, a web site accessible via the Internet, an intranet, or other network, and may be posted using any known manner. A notification generating module 808 may be used to generate a notification identifying one or more IPOs posted. A notifying module 810 may be used to notify potential buyers of the one or more IPOs posted. Buyers may be notified, for example, by forwarding the notification generated to the buyers via electronic mail, facsimile, regular mail, or other method.

Inspecting module 812 may be used to enable buyers to inspect information regarding an IPO. For example, the buyers may inspect a prospectus of a company offering an IPO, a price range for which the company believes shares of the IPO may be sold, a date on which the IPO may be closed, or other information. Inspecting module 812 may also be used to enable users to indicate whether a prospectus for a company's IPO has been read. If a buyer indicates that the prospectus has been read, a conditional offer-to-buy creating module 814 may be used to enable the buyer to create a conditional offer-to-buy. Conditional offer-to-buy creating module 814 may enable the buyer to select a number of shares to purchase, a price range for the shares, personal information regarding the buyer, and other information. Conditional offer- to-buy submitting module 816 may be used to enable the buyer to submit the conditional offer-to-buy. If a conditional offer-to-buy is submitted, a conditional offer-to-buy receiving module 818 may be used to receive the conditional offer-to- buy. If a conditional offer-to-buy is received, an initial information requesting module

820 may be used to request additional initial information from the buyer. The initial information requested may be, for example, inquiring whether the buyer is a finder. An initial information receiving module 822 may be used to receive the initial information received from the buyer. The initial information may be requested by presenting a buyer with an inquiry and one or more selectable options for response. For example, initial information requesting module 820 may present a buyer with an inquiry that states, "Are you a finder?" The buyer may be presented with YES and NO selectable options. The options may be presented in a pull-down menu, adjacent radio buttons, as selectable icons, or other manner. Initial information input by the buyer may be received using initial information receiving module 822. Based on the initial information input by the buyer, eligibility determining module 824 may be used to determine whether the buyer is eligible to submit a conditional offer-to-buy for a particular IPO. If eligibility determining module 824 determines that the user is not eligible to submit a conditional offer-to-buy for the IPO requested, ineligibility notifying module 826 may be used to notify the buyer that he/she is ineligible for submitting a conditional offer-to-buy for an IPO. The buyer may be notified by presenting a view to the buyer indicating that the buyer is ineligible for submitting a conditional offer-to-buy for the IPO.

If eligibility module 824 determines that the buyer is eligible to submit a conditional offer-to-buy, qualifying information requesting module 828 may be used to request qualifying information from the buyer. The qualifying information may include, for example, a buyer's net worth, income, investment experience, or other information. The qualifying information input by the buyer may be received using qualifying information receiving module 830. After receiving the qualifying information, system 800 may assign an identification to the buyer using buyer identification assigning module 832. A qualification determining module 834 may then be used to determine whether the buyer qualifies for submitting a conditional offer-to-buy for the IPO. If a determination is made that the buyer is not qualified, an unqualified notice may be presented to the buyer using unqualified notice presenting module 836. If, however, qualification determining module 834 determines that the buyer is qualified, a conditional offer-to-buy criteria requesting module 838 may be used to request criteria related to the conditional offer-to-buy. The conditional offer- to-buy criteria may include, for example, a number of shares desired to be purchased, a price range for each share, and other information. A conditional offer-to-buy criteria receiving module 840 may be used to receive any conditional offer-to-buy criteria input by the buyer. System 800 may then assign a confirmation number to a conditional offer-to-buy using confirmation number assigning module 842. The conditional offer-to-buy criteria may then be stored by system 800 using conditional offer-to-buy criteria storing module 844. A conditional offer-to-buy information forwarding module 846 may then be used to forward to the buyer and/or a system administrator or user all or a portion of the information regarding a conditional offer- to-buy submitted. The information may include the conditional offer-to-buy confirmation number, number of shares requested, price range, buyer information, or any other desired information. It is to be understood that a buyer may submit multiple conditional offers-to-buy for one or more IPOs.

Fig. 9 is an illustration of a system 900 for using predetermined classes associated with IPOs. System 900 may include a class creating module 902. Class creating module 902 may enable a user to create one or more predetermined classes for one or more IPOs. The classes may be used to provide benefits to particular buyers of the IPO. For example, a friends and family class may be used for a particular IPO. The class may reserve a predetermined number of shares for particular friends and family of users associated with the IPO. Class creating module 902 may create a separate offering available only to particular buyers that are members of the class. For example, class creating module 902 may create a separate web page on a web site posting an IPO. The web page may be accessible only by members of the class. System 900 may determine whether a buyer is a member of a particular class using class determining module 904. Class determining module 904 may determine by, for example, a buyer's electronic mail address, that the buyer is a member of the class. If the class determining module determines that the buyer is a member of the class, class indicator generating module 906 may generate a class indicator, for example, a flag, and place the flag with a buyer's information indicating the classes of which the buyer is a member. System 900 may also include a class notifying module 908. Class notifying module 908 may notify a buyer of membership in one or more classes. A buyer may be notified via electronic mail, phone, facsimile, or other manner. If a buyer of a class attempts to access IPO information regarding that class, and class determining module determines that the buyer is a member of the class, class access enabling module 910 may be used to enable access to the IPO information regarding that class to the buyer.

One advantage to being a member of class is that the buyer may not be requested to submit qualifying or other information. System 900 may maintain personal and other information relating to a buyer and may use that information to determine that the buyer is eligible or qualified to submit a conditional offer-to-buy for the IPO. Additionally, if a buyer is notified via electronic mail that the buyer is a member of one or more classes, the electronic mail may include a link to a web page providing information regarding the predetermined class for the IPO. Buyers that are members of one or more classes may also not be required to reconfirm conditional offers-to-buy. If an IPO changes, and the buyer is a member of one or more predetermined classes, however, the buyer may still be requested to reconfirm the conditional offer-to-buy. Offering changes may include a new prospectus, a delay in the IPO, new price range whether higher or lower, or any other related information.

Fig. 10 is an illustration of a system 1000 for processing conditional offers-to- buy for an IPO. System 1000 may include an IPO opening module 1002. IPO opening module 1002 may enable one or more buyers to submit one or more conditional offers-to-buy for shares of an IPO. Preferably, IPO offering opening module 1002 may only accept requests for shares in one hundred (100) share increments. A conditional offer-to-buy submission determining module 1004 may determine whether one or more buyers have submitted conditional offers-to-buy. An

IPO closing module 1006 may be used to close an IPO and prevent buyers from submitting conditional offers-to-buy. An IPO may be closed, for example, after the

IPO has been opened for a predetermined period of time. A determining module 1008 may be used to determine whether any conditional offers-to-buy meet offering criteria. For example, an IPO may require a purchase of a minimum of one thousand (1000) shares at a price of $15.00 per share. Determining module 1008 may determine whether one or more conditional offers-to-buy meet the criteria set forth in the IPO. If a determination is made that one or more conditional offers-to-buy meet the IPO criteria, conditional offer-to-buy accepting module 1010 may be used to accept one or more of the conditional offers-to-buy meeting the offering criteria. Preferably, a random selection process is used to select the conditional offers-to-buy to be accepted.

For example, conditional offers-to-buy accepting module 1010 may select every tenth conditional offer-to-buy submitted. The process may continue until all of the available shares of the IPO are exhausted. It is to be understood that other processes may also be used in conjunction with or in lieu of a random selection process. After accepting the conditional offers-to-buy selected, a reconfirmation notice may be generated using reconfirmation notice generating module 1012. The reconfirmation notice may be used to reconfirm that the buyer desires to purchase the number of shares requested and at the price stated. After the reconfirmation notice is generated, the reconfirmation notice forwarding module 1014 may be used to forward the reconfirmation notice to the buyer. The reconfirmation notice may be forwarded in electronic, paper, or other format. A reconfirmation enabling module 1016 may be used to enable the buyer to reconfirm the conditional offer-to-buy. If the reconfirmation notice is forwarded using, for example, electronic mail, a link to the conditional offer-to-buy may be provided in the electronic mail that enables the user to access the conditional offer-to-buy. Reconfirmation enabling module 116 may enable the buyer to reconfirm the conditional offer-to-buy using a variety of methods. For example, the user may reply to an electronic mail message requesting reconfirmation of the conditional offer-to-buy, may return a signed form stating the buyer reconfirms the conditional offer-to-buy or may reconfirm using another method. A reconfirmation determining module 1018 may be used to determine whether a buyer has reconfirmed a conditional offer-to-buy. If a buyer has not reconfirmed a conditional offer-to-buy, for example, after a predetermined period of time, system 1000 may forward another reconfirmation notice using reconfirmation forwarding module 1014. Alternatively, a buyer may request cancellation of the conditional offer- to-buy. If reconfirmation determining module 1018 determines that the buyer has reconfirmed a conditional offer-to-buy, conditional offer-to-buy criteria updating module 1020 may be used to update information stored for that buyer regarding that conditional offer-to-buy. For example, information related to that conditional offer- to-buy may include a status field that indicates that the buyer has reconfirmed the conditional offer-to-buy.

After each buyer who has submitted a conditional offer-to-buy has either reconfirmed or canceled the conditional offer-to-buy submitted, conditional offer-to- buy filling module 1022 may be used fill all of the reconfirmed conditional offers-to- buy. Conditional offer-to-buy filling module 1022 may fill the conditional offers-to- buy in increments of one hundred (100) shares. It is to be understood that a conditional offer-to-buy requesting, for example, one thousand (1000) shares may only receive five hundred (500) shares initially. If system 1000 determines at a later time that additional shares may be purchased by that buyer, conditional offer-to-buy filling module 1022 may fill the conditional offer-to-buy in additional one hundred

(100) share increments.

If after filling all of the conditional offers-to-buy originally accepted, additional shares of the IPO remain, additional conditional offer-to-buy acceptance module 1024 may be used to accept additional conditional offers-to-buy. If additional conditional offers-to-buy are accepted, the buyers that submitted the additional conditional offers-to-buy accepted may be notified of acceptance of the conditional offers-to-buy using acceptance notification generating module 1026. Acceptance notification forwarding module 1028 may be used to forward the notification to the buyers of the additional conditional offers-to-buy accepted. A cancellation enabling module 1030 may be used to enable the buyers of the additional conditional offers-to- buy accepted to cancel the conditional offers-to-buy. A cancellation determining module may determine whether the buyer has requested cancellation of the conditional offer-to-buy. If a determination is made that a buyer has not requested cancellation of the conditional offer-to-buy, the conditional offer-to-buy may be locked-in using conditional offer-to-buy locking-in module 1034. A locked-in conditional offer-to- buy may be, for example, a conditional offer-to-buy that may not be modified and has a binding affect on the buyer.

If cancellation determining module 1032 determines that buyer has requested cancellation of a conditional offer-to-buy, determining module 1036 may determine whether the cancellation is a valid cancellation. For example, the buyer may be required to request a cancellation within a predetermined period of time. Therefore, if the buyer has not requested a cancellation within that predetermined period of time, cancellation is invalid and the conditional offer-to-buy may be locked-in using conditional offer-to-buy locking in module 1034. If however, valid cancellation module 1036 determines that the cancellation request is valid, the conditional offer-to- buy may be canceled using conditional offer-to-buy canceling module 1038.

Fig. 11 is an illustration of a system 1100 for enabling modification of a conditional offer-to-buy for an IPO. System 1100 may include a modification enabling module 1102. Modification enabling module 1102 may enable a buyer to make one or more changes to a conditional offer-to-buy submitted for one or more

IPOs. A modification request determining module 1104 may determine whether a buyer has requested to modify a conditional offer-to-buy. If modification request determining module 1104 determines that a buyer has requested a modification, modification option presenting module 1106 may present the buyer with one or more modification options. The modification options may include, for example, changing a number of purchase shares, a change in price range, or other modification. The modification options may be presented as pull down menus, data input fields, selectable icons, or other mechanism. If a buyer inputs one or more modifications, the modifications may be received using modification option receiving module 1108. The modification options received may then be used by a conditional offer-to-buy modifying module 1110 to modify the conditional offer-to-buy according to the modification options received.

System 1100 may also be provided with an expired conditional offer-to-buy determining module 1112. Expired conditional offer-to-buy determining module 1112 may be used to determine whether a conditional offer-to-buy has expired. For example, a conditional offer-to-buy may be expired if a predetermined period of time has elapsed since the conditional offer-to-buy was submitted. If a determination is made that the predetermined period of time has elapsed, invalid conditional offer-to- buy notification generating module 1114 may be used to generate a notification indicating that the conditional offer-to-buy is invalid, because for example, the predetermined period of time has elapsed. The notification may then be forwarded to the buyer using invalid conditional offer-to-buy notification forwarding module 1116.

If a determination is made that the conditional offer-to-buy has not expired, however, additional modification request determining module 1118 may determine whether the buyer has requested additional modifications to the conditional offer-to- buy. If the buyer has requested additional modifications, the buyer may again be presented with modification options using modification option presenting module 1106.

If the buyer has not requested additional modifications, conditional offer-to- buy information updating module 1120 may be used to update information regarding the conditional offer-to-buy. For example, the conditional offer-to-buy information may include all modified and unmodified information regarding the conditional offer- to-buy. Updated conditional offer-to-buy forwarding module 1122 may then be used to forwarded the updated conditional offer-to-buy information to the buyer. The updated conditional offer-to-buy information may be forwarded using any known manner. Preferably, the updated conditional offer-to-buy information is forwarded using electronic mail.

Fig. 12 is an illustration of a system 1200 for processing an effective conditional offer-to-buy. After a conditional offer has been accepted, and the IPO has been approved by the Securities Exchange Commission (SEC), the conditional offer- to-buy may become effective. After the conditional offer-to-buy becomes effective, system 1200 may generate an effectiveness notice using effectiveness notice generating module 1202. A effectiveness notice may then be forwarded to the buyer using effectiveness notice forwarding module 1204. If, however, the conditional offer-to-buy is not effective, for example, the SEC has not approved the IPO, an ineffectiveness notice may be generated using ineffectiveness notice generating module 1206. The ineffectiveness notice may then be forwarded to the buyer using ineffectiveness notice forwarding module 1208.

For IPOs approved by the SEC, an open trading notification may be generated using open trading notification generating module 1210. The open trading notification may indicate when a buyer may begin trading the shares purchased for the

IPO. The open trading notification may be forwarded to the buyer and a trader that may handle on-line trading of the shares of the IPO that the buyer has purchased.

The foregoing description of a system and method for processing information related to an IPO is illustrative and changes in the above construction and sequences of operation may occur to persons skilled in the art. For example, although multiple modules are shown, additional modules may be used, a single module may be used, and multiple modules may be located in various locations. The invention, though described in terms of IPOs, may be used with any type of equity or other offering. Additionally, the methods may be performed in increased or fewer steps and in any order desired. The scope of the invention is accordingly intended to be limited only by the following claims.

Claims

What is claimed is:

1. A method for processing information related to at least one public offering comprising the steps of: creating at least one public offering; determining whether the at least one public offering may be posted; posting the at least one public offering based on the step of determining; generating at least one posting notification; and notifying at least one user that the at least one public offering has been posted.

2. The method of claim 1 , further comprising the step of enabling the at least one user to inspect the at least one public offering.

3. The method of claim 2, further comprising the step of enabling the at least one user to view a prospectus associated with the at least one public offering.

4. The method of claim 3, wherein the prospectus is in a read-only format.

5. The method of claim 3, wherein the prospectus may be viewed with a browser.

6. The method of claim 1 , further comprising the step of enabling the at least one user to submit at least one conditional offer for at least a portion of the at least one public offering.

7. The method of claim 1, further comprising the step of receiving a conditional offer for at least one conditional offer from at least one user.

8. The method of claim 7, further comprising the step of presenting an initial information request to the at least one user.

9. The method of claim 8, further comprising the step of receiving the initial information from the at least one user.

10. The method of claim 1 , further comprising the step of determining whether the at least one user is eligible to submit the at least one conditional offer.

11. The method of claim 10, further comprising the step of determining if the user is a member of a predetermined class if a determination is made that the at least one user is eligible to submit the at least one conditional offer.

12. The method of claim 10, further comprising the step of presenting the at least one user with an ineligible notification if a determination is made that the at least one user is not eligible to submit the at least one conditional offer.

13. The method of claim 10, further comprising the step of presenting a qualifying information request if a determination is made that the at least one user is eligible to submit the at least one conditional offer.

14. The method of claim 13, further comprising the step of receiving the qualifying information from the at least one user.

15. The method of claim 14, further comprising the step of assigning a user identification to the at least one user.

16. The method of claim 15, further comprising the step of determining whether the at least one user meets at least one predetermined qualification.

17. The method of claim 16, further comprising the step of presenting an unqualified notice if a determination is made that the at least one user does not meet the at least one predetermined qualification.

18. The method of claim 16, further comprising the step of presenting a conditional offer criteria request to the at least one user if a determination is made that the at least one user meets at least one predetermined qualification.

19. The method of claim 18, further comprising the step of receiving the conditional offer criteria request from the at least one user.

20. The method of claim 19, further comprising the step of assigning at least one confirmation number to the conditional offer criteria request.

21. The method of claim 20, further comprising the step of storing the conditional offer criteria request for the at least one user.

22. The method of claim 21 , further comprising the step of forwarding conditional offer information to the at least one user.

23. The method of claim 1, further comprising the step of creating at least one predetermined class with at least one user for the at least one public offering.

24. The method of claim 23, further comprising the step of generating a predetermined class indicator for the at least one user.

25. The method of claim 24, further comprising the step of notifying the at least one user of membership to the at least one predetermined class.

26. The method of claim 25, further comprising the step of providing the at least one user with the predetermined class indicator identifying the at least one predetermined class providing membership.

27. The method of claim 26, further comprising the step of enabling the at least one user to access the at least one predetermined class.

28. A method for processing at least one conditional offer for at least one public offering, the method comprising the steps of: opening at least one public offering; receiving at least one conditional offer for the at least one public offering; determining whether conditional offers may be submitted; closing the offering when a determination is made that conditional offers may not be submitted; determining whether the at least one conditional offer meets the offering closed; and accepting the at least one conditional offer if a determination is made that the at least one conditional offer meets the offering closed.

29. The method of claim 28, further comprising the step of generating a reconfirmation notice for the at least one user.

30. The method of claim 29, further comprising the step of forwarding the reconfirmation notice to the at least one user.

31. The method of claim 30, further comprising the step of enabling the at least one user to reconfirm the at least one conditional offer.

32. The method of claim 31, further comprising the step of determining whether the at least one user has reconfirmed the at least one conditional offer.

33. The method of claim 34, further comprising the step of updating the conditional offer criteria if a determination is made that the at least one user has reconfirmed the at least one conditional offer; filling the at least one conditional offer accepted.

34. The method of claim 28, further comprising the step of determining whether at least one additional conditional offer may be accepted.

35. The method of claim 34, further comprising the step of accepting the at least one additional conditional offer if a determination is made that the at least one additional conditional offer may be accepted.

36. The method of claim 35, further comprising the step of generating at least one acceptance notification for the at least one conditional offer meeting the offering closed.

37. The method of claim 36, further comprising the step of forwarding the at least one acceptance notification to the at least one user for whom the at least one conditional offer was accepted.

38. The method of claim 37, further comprising the step of enabling the at least one user for whom the at least one conditional offer was accepted to cancel the at least one conditional offer.

39. The method of claim 38, further comprising the step of determining whether the at least one user for whom the at least one conditional offer was accepted desires to cancel the at least one conditional offer.

40. The method of claim 39, further comprising the step of locking-in the at least one conditional offer for the at least one user for whom the at least one conditional offer was accepted if a determination is made that the at least one user for whom the at least one conditional offer was accepted does not desire to cancel the at least one conditional offer.

41. The method of claim 40, further comprising the step of generating an effectiveness notice.

42. The method of claim 41, further comprising the step of forwarding the effectiveness notice to the at least one user.

43. The method of claim 42, further comprising the step of generating an open trading notification.

44. The method of claim 43, further comprising the step of forwarding the open trading notification to the at least one user.

45. The method of claim 43, further comprising the step of forwarding the open trading notification to an offering administrator.

46. The method of claim 39, further comprising the step of determining whether the at least one user for whom the at least one conditional offer was accepted has requested that the at least one conditional offer be canceled within a predetermined time period.

47. The method of claim 41, further comprising the step of canceling the at least one conditional offer for the at least one user that has requested cancellation of the at least one conditional offer that was accepted.

48. A method enabling at least one user to modify at least one conditional offer for at least one offering, the method comprising the steps of: enabling at least one user to modify at least one conditional offer; determining whether at least one user has requested to modify at least one conditional offer; presenting the at least one user with at least one modification option if a determination is made that the at least one conditional offer has not been outstanding for greater than a predetermined period of time; receiving the at least one modification option; modifying the at least one conditional offer according to the at least one modification option.

49. The method of claim 48, further comprising the step of determining whether the at least one conditional offer has been outstanding for greater than a predetermined period of time.

50. The method of claim 49, further comprising the step of generating an invalid conditional offer notification if the at least one conditional offer has been outstanding for greater than the predetermined period of time.

51. The method of claim 50, further comprising the step of forwarding the invalid conditional offer notification to the at least one user whose at least one conditional offer has been outstanding for greater than the predetermined period of time.

52. The method of claim 48, further comprising the step of determining whether a predetermined time period for an offering has expired.

53. The method of claim 52, further comprising the step of generating an ineffectiveness notice.

54. The method of claim 53, further comprising the step of closing the offering if a determination is made that the predetermined time period for the offering has expired.

55. The method of claim 49, further comprising the step of determining whether the at least one user has requested any additional modifications.

56. The method of claim 55, further comprising the step of presenting the at least one user with at least one modification option if a determination is made that the at least one user has requested any additional modifications.

57. The method of claim 56, further comprising the step of generating an updated conditional offer information if a determination is made that the at least one user has not requested any additional modifications.

58. The method of claim 57, further comprising the step of forwarding the updated conditional offer information to the at least one user who requested the at least one modification option.

59. The method of claim 58, further comprising the step of generating a reconfirmation notice.

60. The method of claim 59, further comprising the step of forwarding the reconfirmation notice to the at least one user.

61. The method of claim 58, further comprising the step of forwarding the ineffectiveness notice to the at least one user.