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To: Bill Harmond who wrote (101147)	4/16/2000 1:27:00 PM
From: HighProb	Read Replies (1) \| Respond to of 164684

>> I bet that exemption changes as a result of this crash. Hope not!! Your question spurred me to look at more of the index shares and structured products. Many if not most of them are exempt. LG

To: Bill Harmond who wrote (101147)	4/16/2000 2:18:00 PM
From: Mama Bear	Read Replies (2) \| Respond to of 164684

"I bet that exemption changes as a result of this crash." I don't believe you understand how these things work, and would be happy to take that bet. Yes, if you can buy the HOLDRs cheaper than the underlying you would buy the HOLDR's, but if they are cheap enough to cause folks to do that, then the trust has to create shares and go out and buy the underlying. These are not fixed share instruments. Units can be created or deleted. They are designed to keep the price of the derivative close to the underlying value, and use this device to encourage arbs to correct any premium or discount so that they don't end up like CEF's. Regards, Barb