Description of Product
The Telecom
HOLDRS
Trust will issue Depositary Receipts
called Telecom HOLDRS representing an undivided beneficial ownership in the
common stock of a group of 20 specified companies that are involved in various
segments of the Telecommunications Industry. The Bank of New York is the
trustee. Telecom HOLDRS may be acquired, held or transferred in a round-lot
amount of 100 Telecom HOLDRS or round-lot multiples. Telecom HOLDRS are separate
from the underlying deposited common stocks that are represented by the Telecom
HOLDRS. The Telecom HOLDRS Trust is not a registered investment company under
the Investment Company Act of 1940 |
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Composition of Telecom
HOLDRS
The specific share amounts
for each round-lot of 100 Telecom HOLDRS are set forth in the table below and were
determined on 12/15/99 so that the initial weightings of each stock approximated the
relative market capitalizations of the specified companies, subject to a maximum weight of
20%. The share amounts specified will not change except for changes due to corporate
actions or reconstitution events. Component list as of 03/22/04.
| Company Name | Symbol | # of shares | % Weight |
| Alltel Corporation | AT | 2.00 | 3.62% |
| AT&T Corp. | T | 5.00 | 3.53% |
| AT&T Wireless Services Inc. | AWE | 8.05 | 3.92% |
| BCE Inc. | BCE | 5.00 | 3.79% |
| BellSouth Corporation | BLS | 15.00 | 14.66% |
| Centurytel Inc | CTL | 1.00 | 1.02% |
| Cincinnati Bell Inc New | CBB | 2.00 | 0.36% |
| Level 3 Communications Inc | LVLT | 3.00 | 0.41% |
| Nextel Communications Inc Cl A | NXTL | 6.00 | 5.34% |
| Qwest Communications Intl Inc | Q | 12.92 | 1.98% |
| SBC Communications Inc. | SBC | 27.00 | 23.86% |
| Sprint Corp | PCS | 6.00 | 1.90% |
| Sprint Corporation | FON | 6.00 | 3.80% |
| Telephone And Data Systems, Inc. | TDS | 1.00 | 2.53% |
| Verizon Communications | VZ | 21.76 | 29.27% |
Download the component list
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Trading Unit
A round
lot is 100 HOLDRS. Odd lots (fewer than 100 HOLDRS) WILL NOT
TRADE. |
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Price
Quotations
Quoted in dollars and fractions of a dollar per HOLDRS.
Minimum “tick” is 1/16th ($0.0625). |
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How to Purchase or Sell
Telecom HOLDRS
Internet HOLDRS may be acquired in two ways:
- through the deposit of the required number of shares of common stock of the
underlying issuers with the trustee, or
- through a cash purchase in the secondary trading market.
Telecom HOLDRS may be disposed of in two ways:
- Telecom HOLDRS may be canceled by turning them into the trustee, The Bank of
New York, and withdrawing the underlying securities, or
- Telecom HOLDRS may be sold on the secondary market.
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Selling Short
Exempt
from SEC Rule 10a-1(short sale rule). |
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Life of Telecom HOLDRS
Trust
The Telecom HOLDRS Trust will terminate should any of the following
occur:
- The Telecom HOLDRS are delisted from The American Stock Exchange and are not
listed for trading on another national securities exchange or through Nasdaq
within 5 business days from the date of delisting.
- The Trustee resigns and no successor trustee is appointed within 60 days
from the date the trustee provides notice of its intent to resign.
- 75% of beneficial owners of outstanding Telecom HOLDRS vote to dissolve and
liquidate the trust.
- Final termination date December 31, 2040.
If a termination event occurs, the trustee will distribute the underlying
securities to owners as promptly as practicable after the termination
event. |
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Shares
Outstanding
The number of outstanding Telecom HOLDRS will increase and
decrease as a result of deposits and withdrawals of the underlying securities.
The trust will stand ready to issue additional Telecom HOLDRS on a continuous
basis when an investor deposits the required shares of common stock with the
trustee. |
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Fees and
Expenses
Custody Fees: The Bank of New York, as trustee and
custodian, will charge you a quarterly custody fee of $2.00 for each round-lot
of 100 Telecom HOLDRS to be deducted from any cash dividend or other cash
distribution on underlying securities received by the trust. The Trustee will
waive any portion of the custody fee which exceeds the total cash dividends and
other cash distributions received.
Issuance and Cancellation Fees:
Internet HOLDRS may be created by delivering to the trust the requisite
whole shares of common stock evidencing an Telecom HOLDRS, The Bank of New York
as trustee will charge an issuance fee of up to $10.00 for each round-lot of 100
Telecom HOLDRS. To cancel Internet HOLDRS and withdraw the underlying
securities, The Bank of New York as trustee will charge a cancellation fee of up
to $10.00 for each round-lot of 100 Telecom HOLDRS. You can only deposit or
cancel Telecom HOLDRS on an in-kind basis in round-lots of 100 Internet
HOLDRS. |
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Minimum Customer
Margin
For purchases, 50%; for short sales, 150%. |
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Settlement
Date
For trades, three New York business days. HOLDRS are in book-entry
form held at The Depository Trust Company (DTC). |
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Settlement
Next New York business day following
expiration. |
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Trading
Hours
9:30 a.m. to 4 p.m. New York time. |
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Trading
System
Specialist/Registered Options Trader. |
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CUSIP
Number
879 27P 20 0 |
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| The information
in this specification sheet is not complete and may be changed. For complete
details regarding rights relating to Telecom HOLDRS and rights relating to the
underlying securities please refer to the prospectus. This is not an offer to
sell Telecom HOLDRS and we are not soliciting offers to buy Telecom HOLDRS in
any state where such offer or sale is not permitted.
“HOLDRS” and
“HOLding Company Depositary Receipts” are service
marks of Merrill Lynch & Co., Inc. |
