Importance

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Abstract

A method of obtaining an advance irrevocable purchase order from a buyer for future delivery of a manufacturer's product. A buyer is issued a right to obtain a selected number of warrants of a manufacturer when the buyer places a revocable purchase order before the start of a vesting period for a selected number of products or services, the number of obtainable warrants being related to the size or value of the purchase order. A strike price is set for the warrants before the start of the vesting period. A selected number of warrants are granted to the buyer at the strike price when the buyer irrevocably confirms the purchase of at least part of the purchase order before the end of the vesting period, the number of granted warrants being related to the size or value of the purchase order that is irrevocably confirmed and being up to the number of remaining obtainable warrants. An incentive to confirm irrevocable orders in advance is implemented by reducing the number of obtainable warrants as time elapses during the vesting period, creating a realizable gain that induces a feedback process between size and date of order confirmation and stock price of the manufacturer.

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First Claim