Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (101170)	4/16/2000 2:28:00 PM
From: Jan Crawley	Read Replies (3) \| Respond to of 164684

then the trust has to create shares and go out and buy the underlying..... How large is the trust? What kind of impact can it have? Thanks! Edit, How liquid is it?

To: Mama Bear who wrote (101170)	4/16/2000 2:33:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 164684

If a 10-pound bag of potatoes is driven down 60%, a potato is driven down 60%, and vice versa. There is no way for HOLDRS to trade at a discount or premium for more than a few moments. The future delivery date is three days. The trustee is buying or selling-off the underlying assets in real time. He doesn't know whether the sales are from longs or shorts. I can't figure out any other way this would work. HOLDRS are basically an open-ended mutual fund with a claim on the individual assets. The trustee is the buyer and seller of last resort and he squares his position. Anyone can create new HOLDRS by depositing component issues in the right proportion, too.