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(Revised from original 2001 version)
Merrill Lynch HOLDRS
Exchange-traded funds (ETFs) and HOLDRS (Holding Company Depositary Receipts) represent recent and highly successful capital market innovations. HOLDRS closely approximates a buy-and-hold strategy, and Merrill Lynch believes the product has significantly lower taxes and other costs than ETFs. The firm is considering broadening the market for HOLDRS by introducing a new 50-stock basket, "Market 2000+ HOLDRS," that would hold 50 of the world's top-capitalized stocks.
Keywords: Capital Markets;
Innovation and Invention;
Perold, Andre F., and Simon E. Brown. "Merrill Lynch HOLDRS." Harvard Business School Case 201-059, November 2001. (Revised from original March 2001 version.)