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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket. -- Ignore unavailable to you. Want to Upgrade?

To: OX who wrote (1299)	10/11/1999 1:23:00 PM
From: Matthew L. Jones	Read Replies (1) \| Respond to of 2103

Ox, I don't care what MLCO says about market cap weighting. The prospectus tells the real story (SEC disclosure being what it is): merrilllynch.com From Merrill: "Internet HOLDRs are depositary receipts issued by the Internet HOLDRs Trust, for which The Bank of New York acts as Trustee. Unlike a mutual fund or UIT, Internet HOLDRs represent an investor's undivided beneficial ownership interest in 20 of the largest and most liquid companies in the Internet industry measured by market capitalization and trading volume. An investor may obtain Internet HOLDRs by purchasing them on the American Stock Exchange or by depositing with the Trustee the required share amounts of the 20 underlying Internet stocks and paying an issuance fee of up to $0.10 per HOLDR to the Trustee. Investors also may cancel their HOLDRs by presenting them to the Trustee and paying a cancellation fee of up to $0.10 per HOLDR to the Trustee in return for delivery to the investor of the 20 Internet stocks represented by the HOLDRs. The issuance and cancellation of HOLDRs is not a taxable event, and this mechanism will provide investors with investing and trading flexibility. Internet HOLDRs, which can only be traded, issued, and cancelled in round-lots of 100 HOLDRs, are the first registered U.S. security to represent investors' undivided ownership rights in other U.S. securities." Merrill say it themselves... they are not like a UIT (spyder) or mutual fund. They are their own private concoction. They have extra fees for order cancellation (unlike anything else) and they smell a lot like a private in house fund. If you look at the posts I provided, it is clear that these are built for the "buy and hold" guys to dabble in the internet. As for the answer to the question about it becoming optionable, I spoke to my brokerage. This is NOT a stock nor is it a UIT (and only one of those is optionable). It is in my opinion, a marketing gimmick. Looks a lot like Merrill's "Christmas Internet Basket" promo which miserably failed earlier in the year. Probably just trying to dispose of leftover inventory from that fiasco. Message 11401049 Message 11401229 Message 11424973 Message 11425493 Message 11427905 techstocks.com Matt