Abstract: A method of trading a security that is based on the prospective income of a performer includes selling one or more security instruments to a plurality of owners, each security instrument having a value based on the prospective income of a performer. The method further includes providing a secondary trading period in which at least one of the plurality of owners offers to sell at least one security instrument to one or more market buyers. Preferably, a plurality of secondary trading periods are provided, with successive secondary trading periods separated by a plurality of days.

Abstract: A method of creating a tradable security based on the prospective income of a performer includes defining an asset value based on the prospective income of the performer, the tradable security value based on the asset value. The method also includes obtaining an agreement from the performer to create a repayment obligation based on a portion of an income stream that corresponds to the asset value. Thereafter, a first account is created and payments toward the repayment obligation are received into the first account.

Abstract: A system for trading in a security having a value based on the prospective income of a performer includes a first processor and a plurality of remote processors. The first processor receives and stores a plurality of bids for the purchase of one or more security instruments, each security instrument having a value based on the prospective income of a performer, the value based at least in part on a contingent portion of the prospective income, the prospective income being service based. The plurality of remote processors are further adapted operable to communicate the plurality of bids to the first processor.

Abstract: A method of managing risk in a security that is based on the prospective income of a performer includes a step of defining an asset value based on the prospective income of the perform, the asset value defining a security value. The method further includes defining a minimum acceptable final valuation. Thereafter, a first account is established and funds in an amount substantially equal to or greater than the minimum acceptable final valuation are received into the first account.