Merrill Lynch & Co. Introduces Internet Stock Basket Security
Bloomberg News
September 22, 1999, 4:22 p.m. PT
Merrill Lynch & Co. Introduces Internet Stock Basket Security
New York, Sept. 22 (Bloomberg) -- Merrill Lynch & Co., the
biggest U.S. brokerage, introduced a security that allows
investors to own a basket of 20 Internet stocks.
The firm today sold 3.77 million of the shares, known as
Internet Holdrs, for more than $400 million through its broker
network.
``The Holdrs investment platform is designed to provide
investors with a flexible, cost-effective way to diversify their
investment in a particular industry through a single, exchange-
listed security,' said Steve Bodurtha, director of Merrill
Lynch's customized investments group.
The most heavily weighted company in the new security is
American Online Inc., the No. Internet service provider, which
comprises about 20 percent. At Home Corp., Yahoo Inc. and E*Trade
Group Inc. together account for about 40 percent.
The security represents ownership of all the underlying
shares. Merrill will allow investors to trade Holdrs shares for
the underlying stocks, enabling investors to sell all or part of
their holdings.
The security will start trading tomorrow on the American
Stock Exchange under the ticker ``HHH.'
Other stocks that make up the underlying shares are:
Amazon.com Inc., eBay Inc., Priceline.Com Inc., CMGI Inc.,
Inktomi Corp., RealNetworks Inc., Exodus Communications Inc.,
DoubleClick Inc., Ameritrade Holding Corp., Lycos Inc., Cnet
Inc., PSINet Inc., Network Associates Inc., EarthLink Network
Inc., MindSpring Enterprises Inc. and Go2Net Inc. |
