System and method for protecting a security

[0030] Referring now to the drawings, wherein like numbers refer to like items, number 10 identifies a preferred method for protecting a security according to the present invention. With reference now to FIG. 1, the method 10 is shown to comprise a first step 12 in which a user obtains, acquires, or purchases a security. Examples of securities that may be obtained, acquired, or purchased are stocks, bonds, mutual funds, options, commodities, futures, derivatives, stock index futures, certificates of deposit, hedge funds, and exchange traded funds. A second step 14 of the method 10 comprises a user purchasing a financial product, instrument, or contract to protect against a change in the value of the security obtained in the step 12. Proof of ownership or interest in the security may be required in order to purchase or issue the financial product. In this manner, if the value or the price of the security decreases over time, the user will be protected against any decrease in the value o