Description
of Product
The Utilities HOLDRS
will issue Depositary Receipts
called Utilities HOLDRS
representing an undivided beneficial ownership in the common stock of a group of
specified companies that are involved in various segments of the utilities industry. The Bank of New York is the trustee. Utilities HOLDRS
may be acquired, held or transferred in a round-lot amount of 100 Utilities
HOLDRS or round-lot multiples. Utilities HOLDRS are separate from the
underlying deposited common stocks that are represented by the Utilities
HOLDRS. The Utilities HOLDRS Trust is not a registered investment company
under the Investment Company Act of 1940. |
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Composition of Utilities
HOLDRS
The specific share amounts
for each round-lot of 100 Utilities HOLDRS are set forth in the table below. The share amounts specified
will not change except for changes due to corporate actions or reconstitution events. Component list as of 3/22/04.
| Company Name | Symbol | # of shares | % Weight |
| American Electric Power Company, Inc. | AEP | 14.00 | 5.74% |
| Centerpoint Energy Inc | CNP | 13.00 | 1.73% |
| Consolidated Edison Inc. | ED | 9.00 | 4.86% |
| Dominion Resources Inc | D | 11.00 | 8.60% |
| Duke Energy Corp | DUK | 30.00 | 8.09% |
| Dynegy Inc New | DYN | 12.00 | 0.53% |
| Edison International | EIX | 15.00 | 4.34% |
| El Paso Corp | EP | 10.00 | 0.85% |
| Entergy Corporation | ETR | 10.00 | 7.12% |
| Exelon Corp | EXC | 15.00 | 12.31% |
| Firstenergy Corp | FE | 10.00 | 4.73% |
| FPL Group, Inc. | FPL | 8.00 | 6.60% |
| PG&E Corp | PCG | 17.00 | 5.98% |
| Progress Energy Inc | PGN | 7.00 | 4.06% |
| Public Service Enterprise Group Incorporated | PEG | 10.00 | 5.70% |
| Reliant Res Inc | RRI | 10.25 | 0.99% |
| Texas Genco Hldgs Inc | TGN | 0.65 | 0.29% |
| The Southern Company | SO | 29.00 | 10.71% |
| The Williams Companies, Inc. | WMB | 20.00 | 2.36% |
| TXU Corp | TXU | 12.00 | 4.38% |
Download the component list
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Please refer to the prospectus for a more complete discussion of
reconstitution events and how they may affect shareholders of Utilities HOLDRS. |
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 Utilities 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.
Utilities HOLDRS may be disposed of in two ways:
- Utilities HOLDRS may be canceled by
turning them into the trustee, The Bank of New York, and
withdrawing the underlying securities, or
- Utilities 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 Utilities HOLDRS Trust
The Utilities HOLDRS Trust will terminate should any of the following occur:
- The Utilities 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
Utilities 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 Utilities HOLDRS will increase and decrease as a result of deposits
and withdrawals of the underlying securities. The trust will stand ready to issue
additional Utilities 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 Utilities 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: Utilities
HOLDRS may be created by delivering to the trust the requisite whole shares of common
stock evidencing an Utilities HOLDRS, The Bank of New York as trustee will charge an
issuance fee of up to $10.00 for each round-lot of 100 Utilities 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 Utilities HOLDRS. You can
only deposit or cancel Utilities 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
918 019 10 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
Utilities HOLDRS and rights relating to the underlying securities please refer to the
prospectus. This is not an offer to sell Utilities HOLDRS and we are not soliciting offers
to buy Utilities 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. |
