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Description of Index
DIAMONDS are Exchange-traded securities that represent ownership in the DIAMONDS
Trust, a long-term unit investment trust established to accumulate and hold a portfolio of
the common stocks that comprise the Dow Jones Industrial AverageSM (DJIASM).
(See components on reverse.) DIAMONDS are intended to provide investment results that generally
correspond to the price performance and dividend yield of the DJIA, and their market value
approximates 1/100 the value of the underlying DJIA. There is no assurance that the performance
of the DJIA can be fully matched. DIAMONDS holders are entitled to receive monthly distributions
corresponding to accrued dividends on the DJIA stocks in the underlying portfolio, less
accumulated Trust expenses.
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Sponsor and Trustee
The DIAMONDS Trust is sponsored
by PDR Services LLC, a Delaware limited liability company whose sole member is The American Stock Exchange
LLC. The trustee is State Street Bank and Trust Company, and the distributor for DIAMONDS
is ALPS Mutual Funds Services, Inc. |
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Trading Unit
A round lot is 100 DIAMONDS. Odd lots of fewer than 100 DIAMONDS also trade. |
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Price Quotations
DIAMONDS prices are quoted in dollars and fractions with minimum increments of 1/64. A quote of 95 1/64 would represent
a price of $95.0156 (or $9,501.56 for a DIAMONDS round lot). |
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Settlement of Trades
Trades settle in three business days. All DIAMONDS are held by The Depository Trust Company (DTC) in book-entry form only. |
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Dividend Equivalent
Dividend equivalent amounts — a pro rata amount (less accumulated Trust expenses) of regular cash dividends for
the stocks in the Trust that have gone ex-dividend — are paid monthly.
DIAMONDS’ ex-dividend date is the third Friday of each month. Accrual periods begin
on the ex-dividend date and extend to the next ex-dividend date. DTC’s Dividend
Reinvestment Service will be made available to DTC participant brokers for monthly
reinvestment of cash distributions received by DIAMONDS holders. |
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Creations and Redemptions
"Creation units" of 50,000 DIAMONDS are created by depositing into the DIAMONDS Trust a specified portfolio of
stock closely approximating the composition of the Dow Jones Industrial Average and a
specified cash amount. Creation units can be redeemed for a specified portfolio of stocks
and cash. The trustee determines shares of component stocks in a creation unit before
trading opens each business day. The required cash amount is determined the same day after
trading closes. |
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Net Asset Values
The net asset value (NAV) per DIAMONDS share is computed each business day at approximately 4 p.m. New York time. NAV
represents the aggregate closing market value of the underlying portfolio of DJIA
securities in the DIAMONDS Trust, plus portfolio cash and any accrued dividends and minus
accumulated Trust expenses on a per DIAMONDS basis. |
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Initial Customer Margin
Regulation T margin requirements for exchange-traded securities apply. Long positions require 50 percent margin; short
positions require 150 percent margin. |
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Exemption From Short Sale Rule
Unlike common stocks, DIAMONDS are exempt from the rule that requires shares to be sold short only on an uptick (a last
sale price higher than the preceding last sale). DIAMONDS can be sold short on a downtick. |
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Symbols
| DIA |
Trading Symbol |
DXP |
Final Monthly Dividend Payment* |
| DXV |
Intraday Value |
DXS |
Shares Outstanding |
| DXN |
Net Asset Value |
DPE |
Estimated Cash Amount |
| DJD |
Net Accrued Dividend |
DXU |
Total Cash Amount Per Creation Unit |
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Product Description
The Amex requires members to provide each DIAMONDS purchaser a written Product Description, provided by the Exchange,
no later than the time confirmation of the first DIAMONDS transaction is delivered. The
Product Description must also accompany DIAMONDS sales material distributed by members.
(Amex Rule 1000, Commentary .01.) |
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Trading Hours
9:30 a.m. to 4:15 p.m. New York time. |
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CUSIP Number
252787106 |
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Index Components
As of 12/2/99
| Alcoa |
(AA) |
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Honeywell International Inc. |
(HON) |
| American Express Co. |
(AXP) |
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Intel Corporation |
INTC |
| AT&T Corp. |
(T) |
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International Business Machines Corp. |
(IBM) |
| The Boeing Co. |
(BA) |
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International Paper Co. |
(IP) |
| Caterpillar Inc. |
(CAT) |
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Johnson & Johnson |
(JNJ) |
| Citigroup Inc. |
(C) |
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McDonald’s Corp. |
(MCD) |
| The Coca-Cola Company |
(KO) |
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Merck & Company, Inc. |
(MRK) |
| The Walt Disney Co. |
(DIS) |
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Microsoft Corporation |
MSFT |
| E.I. du Pont de Nemours & Co. |
(DD) |
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Minnesota Mining and Manufacturing Co. |
(MMM) |
| Eastman Kodak Co. |
(EK) |
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J.P. Morgan & Company Inc. |
(JPM) |
| Exxon Mobil Corp. |
(XOM) |
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Philip Morris Companies Inc. |
(MO) |
| General Electric Company |
(GE) |
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The Procter & Gamble Co. |
(PG) |
| General Motors Corp. |
(GM) |
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SBC Communications, Inc. |
(SBC) |
| Hewlett-Packard Co. |
(HWP) |
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United Technologies Corp. |
(UTX) |
| Home Depot Inc. |
(HD) |
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Wal-Mart Stores, Inc. |
(WMT) |
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