What risks are associated with an investment in HOLDRS?
When you own a HOLDR, you take the same risks entailed in direct stock ownership. Because the value of your HOLDRS is directly related to the value of the underlying securities, it is important to remember that you could lose a substantial part of your original investment in HOLDRS. You should read the entire prospectus carefully before you purchase HOLDRS, especially the risk factors set forth in the prospectus for the HOLDRS you may purchase. Some of the general risks of HOLDRS are listed below: • Market risk Your investment’s value may rise or fall because of broad market movements caused by changes in the economy, the political climate, the capital markets or investor psychology. • Underlying stock risk The stocks in your HOLDRS may increase or decline in value because of events affecting the specific companies that you have invested in. • Sector risk Because your HOLDRS may be concentrated in the stocks of a particular industry, trends in that industry may have a dramatic impact o
