Finite Equity Financial Instruments

A method of providing a finite equity instrument referenced to financial results of an underlying company or companies and effectuated by swapping between two parties, the method comprising the steps of:

• establishing a fixed money obligation to be periodically paid by the first of the two parties;
• establishing a fixed percentage used to calculate a variable money obligation to be periodically paid by the second of the two parties which variable obligation represents the fixed percentage multiplied by financial results periodically reported for the underlying company or companies;
• setting a start date and a maturity date;
• dividing the period of time between the start date and the maturity date into a plurality of calculation periods;
• determining the variable money obligation for each calculation period according to the financial results reported during the calculation period;
• and
• exchanging payments determined according to the money obligations at the end of each calculation period whereby the fixed money obligation is effectively netted with the variable money obligation.