NUVEEN UNIT TRUSTS SERIES 18, S-6/A, 1998-09-16

NUVEEN UNIT TRUSTS SERIES 18
S-6/A, 1998-09-16

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<PAGE>

1940 Act File No. 811-08103

Securities and Exchange Commission
Washington, D.C. 20549

Amendment No. 1 to

Form S-6

For Registration under the Securities Act of 1933 of Securities of Unit
Investment Trusts Registered on Form N-8B-2

A. Exact name of Trust: Nuveen Unit Trusts, Series 18

B. Name of Depositor: John Nuveen & Co. Incorporated

C. Complete address of Depositor's principal executive offices:

333 West Wacker Drive
Chicago, Illinois 60606

D. Name and complete address of agents for service:

John Nuveen & Co. Incorporated
Attention: Gifford R. Zimmerman
333 West Wacker Drive
Chicago, Illinois 60606

Chapman and Cutler
Attention: Eric F. Fess
111 West Monroe Street
Chicago, Illinois 60603

It is proposed that this filing will become effective (check appropriate box)

- ----
: : immediately upon filing pursuant to paragraph (b)
- ----
: : on (date) pursuant to paragraph (b)
- ----
: : 60 days after filing pursuant to paragraph (a)
- ----
: : on (date) pursuant to paragraph (a) of rule 485 or 486
- ----

E. Title of securities being registered: Units of fractional undivided
beneficial interest.

F. Approximate date of proposed sale to the public: As soon as practicable
after the effective date of the Registration Statement.

- ----
: : Check box if it is proposed that this filing will become effective on
- ---- (date) at (time) pursuant to Rule 487.

The registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the registrant
shall file a further amendment which specifically states that this
Registration Statement shall thereafter become effective in accordance
with Section 8(a) of the Securities Act of 1933 or until the Registration
Statement shall become effective on such date as the Commission, acting
pursuant to said Section 8(a), may determine.
- --------------------------------------------------------------------------------
<PAGE>

Nuveen Unit Trusts, Series 18

Cross-Reference Sheet

Pursuant to Rule 404(c) of Regulation C

under the Securities Act of 1933

(Form N-8B-2 Items Required by Instruction 1 as

to Prospectus on Form S-6)
<TABLE>
<CAPTION>
Form N-8B-2 Form S-6
Item Number Heading in Prospectus

I. Organization and General Information
<C> <S> <C>
1. (a) Name of trust ) Prospectus Cover Page
(b) Title of securities issued )

2. Name and address of Depositor ) Information About The Sponsor

3. Name and address of Trustee ) Information About The Trustee

4. Name and address of principal ) Information About The Sponsor
Underwriter )

5. Organization of trust ) Nuveen Unit Trusts
)
6. Execution and termination of Trust ) Nuveen Unit Trusts
Agreement ) Information About The Trustee
) Other Information
)
7. Changes of Name )

8. Fiscal Year )

9. Litigation )

II. General Description of the Trust and Securities of the Trust

10. General information regarding ) Composition of Trusts
trust's securities ) Distributions To Unitholders
) Redemption
) Removal of Securities From The
) Trusts
) Information About The Trustee
) Information About The Sponsor
) Other Information
) Tax Status

11. Type of securities comprising units ) Nuveen Unit Trusts
) Composition Of Trusts
) Objectives Of The Trusts
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
<S> <C> <C>
12. Certain information regarding ) *
periodic payment certificates )
)

13. (a) Loan, fees, expenses, etc. ) Essential Information
) Public Offering Price
) Market For Units
) Evaluation of Securities at the
) Initial Date Of Deposit
) Trust Operating Expenses
) Distributions To Unitholders
) Reports To Unitholders
)
)
)
)

(b) Certain information regarding ) *
periodic payment certificates )

(c) Certain percentages ) Public Offering Price
) Market For Units
) Evaluation of Securities at the
) Initial Date Of Deposit
)
)
)
)
)

(d) Certain other fees, etc. ) Evaluation of Securities at the
payable by holders ) Initial Date Of Deposit
) Trust Operating Expenses
) Ownership and Transfer of Units
)

(e) Certain profits received by ) Composition Of Trusts
depositor, principal ) Purchase of Units by the Sponsor
underwriter, trustee or )
affiliated persons )

(f) Ratio of annual charges to ) *
income )

14. Issuance of trust's securities ) Distributions To Unitholders
) Ownership and Transfer of Units
) Redemption
)
15. Receipt and handling of payments ) *
from purchasers )

</TABLE>

2
<PAGE>

<TABLE>
<C> <S> <C>
16. Acquisition and Disposition of ) Nuveen Unit Trusts
Underlying Securities ) Composition Of Trusts
) Redemption
) Removal of Securities from the
) Trusts
) Other Information
)

17. Withdrawal or redemption ) Market For Units
) Redemption
) Purchase of Units by the Sponsor
)

18. (a) Receipt and disposition of ) Distributions to Unitholders
income ) Reports to Unitholders
)
)

(b) Reinvestment of distributions ) Accumulation Plan

(d) Schedule of distributions ) *

19. Records, accounts and reports ) Distributions to Unitholders
) Reports to Unitholders
)

20. Certain miscellaneous provisions of ) Information About the Trustee
Trust Agreement ) Information About the Sponsor
) Other Information

21. Loans to security holders ) *

22. Limitations on liability ) Composition of Trusts
) Information About the Trustee

23. Bond arrangements ) *

24. Other material provisions of Trust ) *
Agreement )

III. Organization, Personnel and Affiliated Persons of Depositor

25. Organization of Depositor ) Information About the Sponsor

26. Fees received by Depositor ) *

27. Business of Depositor ) Information About the Sponsor

28. Certain information as to officials ) *
and affiliated persons of Depositor )

29. Voting Securities of Depositor ) Information About the Sponsor
</TABLE>

3
<PAGE>

<TABLE>
<C> <S> <C>
30. Persons controlling Depositor )

31. Payments by Depositor for certain )
services rendered to trust )

32. Payments by Depositor for certain ) *
other services rendered to trust )

33. Remuneration of employees of )
Depositor for certain services )
rendered to trust )

34. Remuneration of other persons for )
certain services rendered to trust )

IV. Distribution and Redemption of Securities

35. Distribution of trust's securities ) *
by states )

36. Suspension of sales of trust's )
securities )

37. Revocation of authority to distribute )

38. (a) Method of distribution )

(b) Underwriting agreements ) Distribution of Units to the Public
)

39. (a) Organization of principal ) Information About the Sponsor
underwriter )

(b) NASD membership of principal )
underwriter )

40. Certain fees received by principal ) *
underwriter )

41. (a) Business of principal )
underwriter )

(b) Branch offices of principal ) *
underwriter )

42. Ownership of trust's securities by ) *
certain persons )

43. Certain brokerage commissions ) *
received by principal underwriter )
</TABLE>

4
<PAGE>

<TABLE>
<C> <S> <C>
44. (a) Method of valuation ) Essential Information
) Public Offering Price
) Evaluation of Securities at the Date
) Of Deposit
) Trust Operating Expenses
)

(b) Schedule as to offering price ) *

(c) Variation in offering price to ) Public Offering Price
certain persons ) Evaluation of Securities at the Initial Date
) Of Deposit
)
)
)

45. Suspension of redemption rights ) *

46. (a) Redemption valuation ) Unit Value And Evaluation
) Redemption
) Special Redemption Liquidation and
) Investment in a New Trust
) Purchase of Units by the Sponsor
)

(b) Schedule as to redemption ) *
price )
)

47. Maintenance of position in ) Public Offering Price
underlying securities ) Purchase of Units by the Sponsor
)
)

V. Information Concerning the Trustee or Custodian

48. Organization and regulation of ) Information About the Trustee
Trustee )

49. Fees and expenses of Trustee ) Essential Information
) Trust Operating Expenses
)

50. Trustee's lien ) Trust Operating Expenses
) Distributions to Unitholders
)

VI. Information Concerning Insurance of Holders of Securities

51. Insurance of holders of trust's ) *
securities )
</TABLE>

5
<PAGE>

<TABLE>
<C> <S> <C>
VII. Policy of Registrant

52. (a) Provisions of trust agreement ) Trust Operating Expenses
with respect to selection or ) Redemption
elimination of underlying ) Removal of Securities from the
securities ) Trusts
)

(b) Transactions involving ) *
elimination of underlying )
securities )

(c) Policy regarding substitution ) Composition Of Trusts
elimination of underlying or ) Removal of Securities from the Trusts
securities )
)

(d) Fundamental policy not ) *
otherwise covered )

53. Tax status of trust ) Tax Status
)

VIII. Financial and Statistical Information

54. Trust's securities during last ten ) *
years )

55. )

56. Certain information regarding ) *
periodic payment certificate )

57. )

58. )
</TABLE>
_______________________
*Inapplicable, omitted, answer negative or not required.

6
<PAGE>

Preliminary Prospectus Dated September 16, 1998

Nuveen Unit Trusts - Series 18

The attached Prospectus is hereby used as a preliminary Prospectus for the
above-stated Series. Information with respect to the actual trust including the
portfolios, pricing, the number of Units, dates and summary information
regarding the characteristics of securities to be deposited in this Series is
not now available. Accordingly, the information contained herein should be
considered as being included for informational purposes only.

A REGISTRATION STATEMENT RELATING TO THE UNITS OF THIS SERIES HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BUT HAS NOT YET BECOME
EFFECTIVE. INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT.
SUCH UNITS MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME
THE REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS PROSPECTUS SHALL NOT
CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL
THERE BE ANY SALE OF THE UNITS IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR
SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE
SECURITIES LAWS OF ANY SUCH STATE.
<PAGE>

SUBJECT TO COMPLETION

PRELIMINARY PROSPECTUS DATED SEPTEMBER 16, 1998

LOGO
Defined Portfolios
Nuveen Unit Trusts, Series 18

Nuveen Dow Jonessm Energy Sector Portfolio, Series 1

Nuveen Dow Jonessm Financial Services Sector Portfolio, Series 1

Nuveen Dow Jonessm Pharmaceuticals Sector Portfolio, Series 1

Nuveen Semiconductor Sector Portfolio, Series 1

Nuveen Dow Jonessm Technology Sector Portfolio, Series 1

Nuveen Communications Sector Portfolio

Nuveen Consumer Electronics Sector Portfolio

Nuveen Internet Sector Portfolio

Nuveen Dow Jonessm Precious Metals Sector Portfolio

Nuveen Retail Sector Portfolio

PROSPECTUS PART A DATED OCTOBER , 1998

Overview

tus--Part B which is
Nuveen Unit Trusts, Se- dated 1998.
ries 18 includes the sep- Part B of this Prospectus
arate unit investment is attached.
trusts described above
(the "Trusts"). Each
Trust seeks the potential
for capital appreciation
by investing in the com-
mon stocks of companies
in the respective indus-
try sector represented in
each Trust. The Trusts
may also invest in Ameri-
can Depository Receipts
("ADRs"). ADRs are denom-
inated in U.S. dollars
and are typically issued
by a U.S. bank or trust
company. ADRs evidence
ownership of the under-
lying foreign security.
The common stocks and
ADRs are collectively re-
ferred to as the "Securi-
ties". The Trusts are
scheduled to terminate in
approximately five years.

Units of the Trust are
not deposits or obliga-
tions of, or guaranteed
or endorsed by, any bank
and are not federally in-
sured or otherwise pro-
tected by the FDIC or any
other Federal agency and
involve investment risk,
including the possible
loss of principal.

THESE SECURITIES HAVE NOT
BEEN APPROVED OR DISAP-
PROVED BY THE SECURITIES
AND EXCHANGE COMMISSION
NOR HAS THE COMMISSION
PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PRO-
SPECTUS. ANY REPRESEN-
TATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.

This Part A Prospectus
may not be distributed
unless accompanied by the
Nuveen Sector Unit Trust
Prospec -
Contents
1OVERVIEW 14DISTRIBUTIONS
2TRUST SUMMARY AND FINANCIAL HIGHLIGHTS
14Income and Capital Distributions
2Essential Information 14INVESTING IN THE TRUST
2Expense Information 14Sales Charges
4NUVEEN ENERGY SECTOR PORTFOLIO, SERIES 1
15Dealer Concessions
6NUVEEN FINANCIAL SERVICES PORTFOLIO, SERIES 1
15General Information
8NUVEEN PHARMACEUTICALS SECTOR PORTFOLIO, SERIES 1
15Optional Features
10 15Secondary Market for Units
NUVEEN SEMICONDUCTOR SECTOR PORTFOLIO, SERIES 1
12 16Termination
16The Sponsor
17NOTES TO PORTFOLIOS
18STATEMENTS OF CONDITION
19REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
NUVEEN TECHNOLOGY PORTFOLIO, SERIES 1
14
RISK FACTORS

"Dow Jones Industrial Averagesm", The Dow 5sm, The
Dow 10sm, Dow Jones, Dow Jones Global Indexes and
"DJIAsm" are service marks of Dow Jones & Company,
Inc. ("Dow Jones") and have been licensed for use for
certain purposes by John Nuveen & Co. Incorporated
("Nuveen") on behalf of certain Trusts. The Trusts
are not endorsed, sold or promoted by Dow Jones, and
Dow Jones makes no representation regarding the ad-
visability of investing in the Trusts.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
+INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A +
+REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE +
+SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY +
+OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT +
+BECOMES EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR +
+THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE +
+SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE +
+UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF +
+ANY SUCH STATE. +
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

--
D05-05-98-P 1
<PAGE>

Nuveen Unit Trusts, Series 18

TRUST SUMMARIES AND FINANCIAL HIGHLIGHTS as of October , 1998

ESSENTIAL INFORMATION

GENERAL INFORMATION
<TABLE>
<S> <C>
Initial Date of Deposit................................. October , 1998
Mandatory Termination Date..............................
Record Dates............................................ June 15 and December 15
Distribution Dates...................................... June 30 and December 31
CUSIP Numbers:
Dividends in Cash.......................................
Dividends Reinvested....................................
</TABLE>

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ESTIMATED
ANNUAL ESTIMATED
INITIAL AGGREGATE INCOME ANNUAL
NUMBER OF VALUE OF DISTRIBUTION DIVIDENDS
UNITS(1) SECURITIES PER UNIT(2) PER TRUST(2)
--------- ---------- ------------ ------------
TRUST INFORMATION
<S> <C> <C> <C> <C>
Energy Sector Portfolio......... $ $ $
Financial Services Sector Port-
folio.......................... $ $ $
Pharmaceuticals Sector Portfo-
lio............................ $ $ $
Semiconductor Sector Portfolio.. $ $ $
Technology Sector Portfolio..... $ $ $
</TABLE>

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL
ENERGY SERVICES PHARMACEUTICALS SEMICONDUCTOR TECHNOLOGY
SECTOR SECTOR SECTOR SECTOR SECTOR
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------------- ------------- ----------
PUBLIC OFFERING PRICE(3)(5)
<S> <C> <C> <C> <C> <C>
Aggregate value of Secu-
rities per Unit........ $ 9.90 $ 9.90 $ 9.90 $ 9.90 $ 9.90
Plus Maximum Sales
Charge of 4.50%
(4.545% of the net
amount invested)(4).... 0.45 0.45 0.45 0.45 0.45
Less deferred sales
charge(4).............. 0.35 0.35 0.35 0.35 0.35
Public Offering Price
per Unit............... $10.00 $10.00 $10.00 $10.00 $10.00
Estimated Organizational
and Offering Costs(5).. $ $ $ $ $
</TABLE>

EXPENSE INFORMATION

<TABLE>
<CAPTION>
FINANCIAL
ENERGY SERVICES PHARMACEUTICALS SEMICONDUCTOR TECHNOLOGY
SECTOR SECTOR SECTOR SECTOR SECTOR
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------------- ------------- ----------
SALES CHARGES (MAXIMUM TOTAL 4.50%)(6)
<S> <C> <C> <C> <C> <C>
Initial Sales Charge.... 1.00% 1.00% 1.00% 1.00% 1.00%
Deferred Sales Charge... 3.50% 3.50% 3.50% 3.50% 3.50%
Total Sales Charge...... 4.50% 4.50% 4.50% 4.50% 4.50%
Maximum Sales Charge on
Reinvested Dividends... 3.50% 3.50% 3.50% 3.50% 3.50%
</TABLE>

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOOKKEEPING ESTIMATED
SPONSOR'S AND ANNUAL
TRUSTEE'S SUPERVISORY ADMINISTRATIVE MISCELLANEOUS EXPENSES
FEE FEE(7) FEE(7) EXPENSES PER UNIT
--------- ----------- -------------- ------------- ---------
ESTIMATED ANNUAL OPERATING EXPENSES
PER UNIT
<S> <C> <C> <C> <C> <C>
Energy Sector Portfolio. $0.00 $0.00 $0.00 $0.00 $0.00
Financial Services Sec-
tor Portfolio..........
Pharmaceuticals Sector
Portfolio..............
Semiconductor Sector
Portfolio..............
Technology Sector Port-
folio.................. $0.00 $0.00 $0.00 $0.00 $0.00
</TABLE>

- --------------------------------------------------------------------------------
ESTIMATED COSTS OVER TIME
The following are the estimated cumulative costs on a $1,000 investment in each
Trust, assuming (as mandated by the Securities and Exchange Commission) a 5%
annual return, and reinvestment of all distributions:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS
-------- ----------- ----------
<S> <C> <C> <C>
Energy Sector Portfolio......................... $ $ $
Financial Services Sector Portfolio............. $ $ $
Pharmaceuticals Sector Portfolio................ $ $ $
Semiconductor Sector Portfolio.................. $ $ $
Technology Sector Portfolio..................... $ $ $
</TABLE>
The examples reflect both the estimated operating expenses and maximum sales
charge on an increasing investment (had the net annual return been reinvested
in a Trust). The examples should not be considered representations of future
expenses or annual rates of return; the actual expenses and annual rates of
return may be more or less than those used in the examples.

---
2
<PAGE>

Nuveen Unit Trusts, Series 18

TRUST SUMMARIES AND FINANCIAL HIGHLIGHTS (CONTINUED) as of October , 1998

ESSENTIAL INFORMATION

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ESTIMATED
ANNUAL ESTIMATED
INITIAL AGGREGATE INCOME ANNUAL
NUMBER OF VALUE OF DISTRIBUTION DIVIDENDS
UNITS(1) SECURITIES PER UNIT(2) PER TRUST(2)
--------- ---------- ------------ ------------
TRUST INFORMATION
<S> <C> <C> <C> <C>
Communications Sector Portfolio. $ $ $
Consumer Electronics Sector
Portfolio...................... $ $ $
Internet Sector Portfolio....... $ $ $
Precious Metals Sector Portfo-
lio............................ $ $ $
Retail Sector Portfolio......... $ $ $
</TABLE>

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSUMER PRECIOUS
COMMUNICATIONS ELECTRONICS INTERNET METALS RETAIL
SECTOR SECTOR SECTOR SECTOR SECTOR
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ----------- --------- --------- ---------
PUBLIC OFFERING PRICE(3)(5)
<S> <C> <C> <C> <C> <C>
Aggregate value of Secu-
rities per Unit........ $ 9.90 $ 9.90 $ 9.90 $ 9.90 $ 9.90
Plus Maximum Sales
Charge of 4.50%
(4.545% of the net
amount invested)(4).... 0.45 0.45 0.45 0.45 0.45
Less deferred sales
charge(4).............. 0.35 0.35 0.35 0.35 0.35
Public Offering Price
per Unit............... $10.00 $10.00 $10.00 $10.00 $10.00
Estimated Organizational
and Offering Costs(5).. $ $ $ $ $
</TABLE>

EXPENSE INFORMATION

<TABLE>
<CAPTION>
CONSUMER PRECIOUS
COMMUNICATIONS ELECTRONICS INTERNET METALS RETAIL
SECTOR SECTOR SECTOR SECTOR SECTOR
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ----------- --------- --------- ---------
SALES CHARGES (MAXIMUM TOTAL 4.50%)(6)
<S> <C> <C> <C> <C> <C>
Initial Sales Charge.... 1.00% 1.00% 1.00% 1.00% 1.00%
Deferred Sales Charge... 3.50% 3.50% 3.50% 3.50% 3.50%
Total Sales Charge...... 4.50% 4.50% 4.50% 4.50% 4.50%
Maximum Sales Charge on
Reinvested Dividends... 3.50% 3.50% 3.50% 3.50% 3.50%
</TABLE>

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOOKKEEPING ESTIMATED
SPONSOR'S AND ANNUAL
TRUSTEE'S SUPERVISORY ADMINISTRATIVE MISCELLANEOUS EXPENSES
FEE FEE(7) FEE(7) EXPENSES PER UNIT
--------- ----------- -------------- ------------- ---------
ESTIMATED ANNUAL OPERATING EXPENSES
PER UNIT
<S> <C> <C> <C> <C> <C>
Communications Sector
Portfolio.............. $0.00 $0.00 $0.00 $0.00 $0.00
Consumer Electronics
Sector Portfolio.......
Internet Sector Portfo-
lio....................
Precious Metals Sector
Portfolio..............
Retail Sector Portfolio. $0.00 $0.00 $0.00 $0.00 $0.00
</TABLE>

- --------------------------------------------------------------------------------
ESTIMATED COSTS OVER TIME
The following are the estimated cumulative costs on a $1,000 investment in each
Trust, assuming (as mandated by the Securities and Exchange Commission) a 5%
annual return, and reinvestment of all distributions:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS
-------- ----------- ----------
<S> <C> <C> <C>
Communications Sector Portfolio................. $ $ $
Consumer Electronics Sector Portfolio........... $ $ $
Internet Sector Portfolio....................... $ $ $
Precious Metals Sector Portfolio................ $ $ $
Retail Sector Portfolio......................... $ $ $
</TABLE>
The examples reflect both the estimated operating expenses and maximum sales
charge on an increasing investment (had the net annual return been reinvested
in a Trust). The examples should not be considered representations of future
expenses or annual rates of return; the actual expenses and annual rates of re-
turn may be more or less than those used in the examples.

---
3
<PAGE>

- --------------------------------------------------------------------------------
Notes to Essential Information and Expense Information:

(1) As of the close of business on the Initial Date of Deposit, the number of
Units of a Trust may be adjusted so that the Public Offering Price per Unit
will equal approximately $10.00. Thereupon, to the extent of any such ad-
justment, the fractional undivided interest per Unit will increase or de-
crease accordingly, from the amounts indicated above.

(2) Estimated Annual Income Distributions are based on the most recently de-
clared dividends of the Securities. Estimated Annual Income Distributions
per Unit are based on the number of Units, the fractional undivided inter-
est in the Securities per Unit and the aggregate value of the Securities
per Unit as of the Initial Date of Deposit. Investors should note that the
actual amount of income distributed per Unit by a Trust will vary from the
estimated amount due to a variety of factors including, changes in the
items described in the preceding sentence, expenses and actual dividends
declared and paid by the issuers of the Securities.

(3) Each Security listed on a national securities exchange or the NASDAQ Na-
tional Market System is valued at the closing sale price, or if no such
price exists or if the Security is not so listed, at the closing ask price
thereof.

(4) The maximum sales charge consists of an initial sales charge and a deferred
sales charge. The initial sales charge represents an amount equal to the
difference between the Maximum Total Sales Charge for a Trust of 4.50% of
the Public Offering Price and the maximum remaining deferred sales charge
(initially $0.35 per Unit). Unitholders will also be assessed a deferred
sales charge of $0.07 per Unit, payable on the last business day of each
month, over the period commencing May 31, 1999 through September 30, 1999.
Subsequent to the Initial Date of Deposit, the amount of the initial sales
charge will vary with changes in the aggregate value of the Securities in a
Trust. Deferred sales charge payments will be paid from funds in the Capi-
tal Account, if sufficient, or from the periodic sale of Securities. Any
applicable uncollected deferred sales charge amounts remaining when a
Unitholder sells or redeems their Units will be deducted from the sales or
redemption proceeds. See "Investing in the Trust-Sales Charges," below and
"Public Offering Price" in Part B of this Prospectus for additional infor-
mation. On the Initial Date of Deposit there will be no accumulated divi-
dends in the Income Account. Anyone ordering Units after such date will pay
a pro rata share of any accumulated dividends in such Income Account. The
Public Offering Price as shown reflects the value of the Securities at the
opening of business on the Initial Date of Deposit and establishes the
original proportionate relationship amongst the individual Securities. No
sales to investors will be executed at this price. Additional Securities
may be deposited during the day of the Initial Date of Deposit. See "Public
Offering Price" in Part B of this Prospectus.

(5) Unitholders will bear all or a portion of the costs incurred in organizing
a Trust (including costs of preparing the registration statement, the trust
indenture and other closing documents, registering Units with the Securi-
ties and Exchange Commission and states, the initial audit of the Trust
portfolio, the initial evaluation, legal fees, the initial fees and ex-
penses of the Trustee, and any other non-material out-of-pocket expenses
but not the expenses incurred in the printing of preliminary and final pro-
spectuses, nor the expenses incurred in the preparation and printing of
brochures and other advertising materials or any other selling expenses),
as is common for mutual funds. Estimated organizational and offering costs
are included in the Public Offering Price per Unit. Organizational and of-
fering costs will be deducted from the assets of the Trust at the end of
the initial offering period (approximately months). See "Public Offer-
ing Price" in Part B of this Prospectus and "Statement of Condition."

(6) The Maximum Initial Sales Charge (as a percentage of the Initial Public Of-
fering Price) is the difference between the Maximum Total Sales Charge of
4.50% and the maximum remaining deferred sales charge (initially $0.35 per
Unit) and would exceed 1% if the Public Offering Price exceeds $10.00 per
Unit. The actual deferred sales charge is $0.07 per Unit per month, irre-
spective of the purchase or redemption price, deducted on such dates set
forth in "Investing in the Trust." Except as noted in "Investing in the
Trust" or "Redemption" in Part B of this Prospectus, if a Unitholder sells
or redeems Units before all of these deductions have been made, the balance
of the deferred sales charge payments remaining will be deducted from the
sales or redemption proceeds. If the Public Offering Price exceeds $10.00
per Unit, the deferred portion of the sales charge will be less than 3.50%;
if the Public Offering Price is less than $10.00 per Unit, the deferred
portion of the sales charge will be greater than 3.50%.

(7) The Sponsor's Supervisory Fee compensates the Sponsor and/or its affiliates
for maintaining surveillance over the portfolio. In providing such supervi-
sory services, the Sponsor may purchase research from a variety of sources,
which may include dealers of the Trust. The Bookkeeping and Administrative
Fee reimburses the Sponsor for its costs of providing certain bookkeeping
and administrative services for a Trust. Such services include but are not
limited to, the preparation of comprehensive tax statements, providing ac-
count information to Unitholders, . See "Trust Operating Ex-
penses" in Part B of this Prospectus.

---
4
<PAGE>

Nuveen Dow JonesSM Energy Sector Portfolio, Series 1

The Nuveen Dow Jonessm Energy Sector Portfolio consists of common stocks of
energy companies that the Sponsor believes are well-positioned to take advan-
tage of the world's increasing demand for energy. The Trust is diversified
across many energy sectors including integrated oil, oil field services and
equipment, oil and gas exploration and production, oil and gas drilling, oil
refining and marketing and natural gas.

Investment Objective. The objective of the Trust is capital appreciation. The
Trust will invest in a diversified portfolio of common stocks of energy compa-
nies. Of course, there is no assurance that the Trust will achieve its objec-
tive.

How the Trust Selects Investments. The Securities included in the Trust's
portfolio were selected by Nuveen's research department with the assistance
and expertise of Lehman Brothers Inc., a 148-year-old global investment bank
with over 100 equity analysts.

To construct the portfolio, Nuveen and Lehman follow these steps:

. select subgroups from the universe of Dow Jones Global Industry Groups;

. determine weighting of each subgroup within the portfolio;

. select the largest capitalization stocks within each subgroup and weight
them appropriately;

. check stocks for extraordinary corporate events that may prevent them from
meeting the portfolio's quality standards; and

. examine the next stock on the list in order of market capitalization, if a
stock is excluded.

The Energy Sector. Oil and natural gas are leading sources of energy, and a
number of recent developments have combined to sustain demand and promote
growth in these industries. Technology has lowered costs and improved effi-
ciency in finding and developing oil and gas reserves. Production costs out-
side the United States have also declined, making projects more economically
feasible and increasing drilling activity.

Analysts believe that over the next 20 years, world oil demand will poten-
tially rise with most growth from Asia. Also, increasing Asian and Eastern Eu-
ropean demand for natural gas may fuel that segment's continued positive
growth. Offshore drilling was, at one time, five times as costly as onshore
drilling, but improved accessibility and technological advances have reduced
that gap. Analysts forecast continued long-term growth for the major offshore
drilling areas.

Securities Descriptions. [to come]

Investor Suitability. The Trust is a suitable investment for investors:

. seeking a unit trust concentrated in the common stock of energy companies;
and

. seeking the opportunity to take advantage of the growth potential of energy
companies.

The Trust is not a suitable investment if:

. you are unwilling to assume the risks inherent in investing in a portfolio
concentrated in the common stocks of energy companies.

- -------------------------------------------------------------------------------

SECTOR DIVERSIFICATION

<TABLE>
<S> <C>
Integrated Oil............................................................ %
Oilfield services and equipment........................................... %
Oil and gas production.................................................... %
Natural gas............................................................... %
</TABLE>

Concentration Risk. The Trust is considered to be concentrated in the securi-
ties of energy companies. Such concentration may subject Unitholders to
greater market risk than other investment vehicles that have more diversified
portfolios. In particular, companies involved in the energy industry are sub-
ject to changes in value and dividend yield which depend to a large extent on
the price and supply of unpredictable energy fuels and consumer demand. In ad-
dition, increasing sensitivity to environmental concerns will likely pose se-
rious challenges to the industry over the coming decade. Energy conservation,
taxes and the regulatory policies of various governments may also affect the
industry. See "Risk Factors" herein and in Part B of this Prospectus for an
additional discussion of potential risks.

---
5
<PAGE>

- --------------------------------------------------------------------------------

NUVEEN UNIT TRUSTS, SERIES 18

Nuveen Dow Jonessm Energy Sector Portfolio, Series 1

Schedule of Investments at the Initial Date of Deposit, October , 1998

<TABLE>
<CAPTION>
PERCENTAGE OF MARKET
AGGREGATE VALUE COST OF CURRENT
NUMBER OF NUMBER OF ISSUER OF SECURITIES OFFERING PER SECURITIES TO DIVIDEND
SHARES (TICKER SYMBOL) PRICE SHARE TRUST YIELD
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
000 0.00% $00.0000 $00,0000 0.00%
--- ----- --------
000 0.00% $00,0000
=== ===== ========
</TABLE>
- ---------
See "Notes to Portfolio."

---
6
<PAGE>

Nuveen Dow Jonessm Financial Services Sector Portfolio, Series 1

The Nuveen Dow Jonessm Financial Services Sector Portfolio consists of common
stocks issued primarily by financial services companies. The Trust is diversi-
fied across many financial institutions including banks, thrifts, insurance
companies and asset management companies.

Investment Objective. The objective of the Trust is capital appreciation. The
Trust will invest in a diversified portfolio of common stocks of financial
services companies. Of course, there is no assurance that the Trust will
achieve its objective.

To construct the portfolio, Nuveen and Lehman follow these steps:

. select subgroups from the universe of Dow Jones Global Industry Groups;

. determine weighting of each subgroup within the portfolio;

. select the largest capitalization stocks within each subgroup and weight
them appropriately;

. check stocks for extraordinary corporate events that may prevent them from
meeting the portfolio's quality standards; and

. examine the next stock on the list in order of market capitalization, if a
stock is excluded.

The Financial Services Sector. Financial institutions continue to establish
themselves as comprehensive service providers. A number of developments have
combined to fuel growth in this sector. As brokers seek new clients and is-
suers pursue attractive rates in foreign markets, the industry becomes in-
creasingly global. Additionally, investors look abroad for greater returns and
reduced risk through globally diversified portfolios. Because baby boomers
have historically undersaved, a prolonged period of large-scale investing
could occur as this group advances in age. Analysts believe that recent
inflows into equity mutual funds are one signal that these individuals are
taking responsibility for their retirement.

Securities Descriptions. [to come]

Investor Suitability. The Trust is a suitable investment for investors:

. seeking a unit trust concentrated in the common stock of financial services
companies; and

. seeking the opportunity to take advantage of the growth potential of finan-
cial services companies.

The Trust is not a suitable investment if:

. you are unwilling to assume the risks inherent in investing in a portfolio
concentrated in the common stocks of financial services companies.

- -------------------------------------------------------------------------------

SECTOR DIVERSIFICATION

<TABLE>
<S> <C>
Banks and thrifts......................................................... %
Insurance companies....................................................... %
Specialty finance companies............................................... %
</TABLE>

Concentration Risk. The Trust is considered to be concentrated in the securi-
ties of financial services companies. Such concentration may subject
Unitholders to greater market risk than other investment vehicles that have
more diversified portfolios. In particular, companies involved in the finan-
cial services industry are subject to the adverse effects of economic reces-
sion, volatile interest rates, portfolio concentrations in geographic markets
and in commercial and residential real estate loans, increased regulation and
competition. In addition, such companies are subject to extensive regulation
which can negatively impact earnings and the ability of a company to pay divi-
dends. See "Risk Factors" herein and in Part B of this Prospectus for an addi-
tional discussion of potential risks.

---
7
<PAGE>

- --------------------------------------------------------------------------------

NUVEEN UNIT TRUSTS, SERIES 18

Nuveen Dow Jonessm Financial Services Sector Portfolio, Series 1

Schedule of Investments at the Initial Date of Deposit, October , 1998

<TABLE>
<CAPTION>
PERCENTAGE OF MARKET
AGGREGATE VALUE COST OF CURRENT
NUMBER OF NAME OF ISSUER OF SECURITIES OFFERING PER SECURITIES TO DIVIDEND
SHARES (TICKER SYMBOL) PRICE SHARE TRUST YIELD
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
000 0.00% $00.0000 $00,0000 0.00%
--- ----- --------
000 0.00% $00,0000
=== ===== ========
</TABLE>
- ---------
See "Notes to Portfolio."

---
8
<PAGE>

Nuveen Dow Jonessm Pharmaceutical Sector Portfolio, Series 1

The Nuveen Dow Jonessm Pharmaceuticals Sector Portfolio consists of common
stocks of pharmaceutical companies. The Trust is diversified across many in-
dustries including biotechnology, genetics, proprietary medicines and medical
supplies.

Investment Objective. The objective of the Trust is capital appreciation. The
Trust will invest in a diversified portfolio of common stocks of pharmaceuti-
cal companies. Of course, there is no assurance that the Trust will achieve
its objective.

To construct the portfolio, Nuveen and Lehman follow these steps:

. select subgroups from the universe of Dow Jones Global Industry Groups;

. determine weighting of each subgroup within the portfolio;

. select the largest capitalization stocks within each subgroup and weight
them appropriately;

. check stocks for extraordinary corporate events that may prevent them from
meeting the portfolio's quality standards; and

. examine the next stock on the list in order of market capitalization, if a
stock is excluded.

The Pharmaceuticals Sector. Today's health care environment is ever changing--
from managed care to major medical breakthroughs. A number of developments
have combined to fuel growth in this sector. As baby-boomers advance in years,
the global over-65 population is predicted to rise through the year 2025. This
aging population pressures the industry to continue developing new drugs to
improve and prolong life. Managed care's share of the retail pharmaceutical
market was less than 30% at the start of the decade. The rapid growth of man-
aged care's presence should continue to transform the market place. Key driv-
ers of industry growth include recent legislation that expedites the new drug
review process and allows the promotion of drugs for unapproved uses under
certain circumstances, and the FDA's relaxed rules on direct-to-consumer ad-
vertising of prescription drugs.

Securities Descriptions. [to come]

Investor Suitability. The Trust is a suitable investment for investors:

. seeking a unit trust concentrated in the common stock of pharmaceutical com-
panies; and

. seeking the opportunity to take advantage of the growth potential of pharma-
ceutical companies.

The Trust is not a suitable investment if:

. you are unwilling to assume the risks inherent in investing in a portfolio
concentrated in the common stocks of pharmaceutical companies.

- -------------------------------------------------------------------------------

SECTOR DIVERSIFICATION

<TABLE>
<S> <C>
Biotechnology............................................................. %
Genetics.................................................................. %
Proprietary medicine...................................................... %
Medical supplies.......................................................... %
</TABLE>

Concentration Risk. The Trust is considered to be concentrated in the securi-
ties of pharmaceutical companies. Such concentration may subject Unitholders
to greater market risk than other investment vehicles that have more diversi-
fied portfolios. In particular, companies involved in the pharmaceuticals in-
dustry are subject to governmental regulation of their products and services,
a factor which can have a significant unfavorable effect on the price and
availability of such products or services. In addition, such companies face
the risk of increasing competition from generic drug sales, the termination of
their patent protection for drug products, and the risk that technological ad-
vances will render their products or services obsolete. See "Risk Factors"
herein and in Part B of this Prospectus for an additional discussion of poten-
tial risks.

---
9
<PAGE>

- --------------------------------------------------------------------------------

NUVEEN UNIT TRUSTS, SERIES 18

Nuveen Dow Jonessm Pharmaceuticals Sector Portfolio, Series 1

Schedule of Investments at the Initial Date of Deposit, October , 1998

---
10
<PAGE>

Nuveen Semiconductor Sector Portfolio, Series 1

The Nuveen Semiconductor Sector Portfolio consists of common stocks of semi-
conductor companies that the Sponsor believes are well-positioned to take ad-
vantage of the world's increasing demand for electronic equipment. The Trust
is diversified across many semiconductor industries including design, distri-
bution, manufacturing and sales of electronic equipment.

Investment Objective. The objective of the Trust is capital appreciation. The
Trust will invest in a diversified portfolio of common stocks of semiconductor
companies. Of course, there is no assurance that the Trust will achieve its
objective.

To construct the portfolio, Nuveen and Lehman follow these steps:

. select Industry Groups from various indexes that comprise the sector;

. determine weighting of each Industry Group within the portfolio;

. select the largest capitalization stocks within each Industry Group and
weight them appropriately;

. assess stocks for attractive investment potential over the life of the
trust;

. check stocks for extraordinary corporate events that may prevent them from
meeting the portfolio's quality standards; and

. examine the next stock on the list in order of market capitalization, if a
stock is excluded.

The Semiconductor Sector. Despite a cloudy near-term outlook for this cyclical
industry, a number of elements have the potential to fuel growth in this sec-
tor. Computing end markets remain the most important driver of industry sales,
but the growth of the communications segment--networking infrastructure, the
Internet and wireless communications--indicates continued strong demand for
semiconductor devices.

Unit sales of sub-$1,000 systems have experienced recent rapid growth. While
this low-end competition challenges manufacturers' profitability, it expands
end markets to include more of the estimated 60% of consumers who do not own
PCs. Analog product life cycles tend to be longer, and the business is less
capital-intensive than other areas of the semiconductor market. Consequently,
analogs have been insulated from recent industry plagues and have seen more
consistent operating results.

Securities Descriptions. [to come]

Investor Suitability. The Trust is a suitable investment for investors:

. seeking a unit trust concentrated in the common stock of semiconductor com-
panies; and

. seeking the opportunity to take advantage of the growth potential of semi-
conductor companies.

The Trust is not a suitable investment if:

. you are unwilling to assume the risks inherent in investing in a portfolio
concentrated in the common stocks of semiconductor companies.

- -------------------------------------------------------------------------------

SECTOR DIVERSIFICATION

<TABLE>
<S> <C>
Design.................................................................... %
Distribution.............................................................. %
Manufacturing............................................................. %
Sales..................................................................... %
</TABLE>

Concentration Risk. The Trust is considered to be concentrated in the securi-
ties of semiconductor companies. Such concentration may subject Unitholders to
greater market risk than other investment vehicles that have more diversified
portfolios. In particular, companies involved in the semiconductor industry
must contend with rapidly changing technology, competition, rapid production
obsolescence, cyclical market patterns, evolving industry standards and fre-
quent new product introductions. An unexpected change in one or more of the
technologies affecting an issuer's products or in the market for products
based on a particular technology could have an adverse effect on an issuer's
operating results. In addition, operation results and customer relationships
could be adversely affected by an increase in price for, or an interruption or
reduction in supply of, any key components and the failure of the issuer to
comply with rigorous industry standards. See "Risk Factors" herein and in Part
B of this Prospectus for an additional discussion of potential risks.

---
11
<PAGE>

- --------------------------------------------------------------------------------

NUVEEN UNIT TRUSTS, SERIES 18

Nuveen Semiconductor Sector Portfolio, Series 1

Schedule of Investments at the Initial Date of Deposit, October , 1998

---
12
<PAGE>

Nuveen Dow Jonessm Technology Sector Portfolio, Series 1

The Nuveen Dow Jonessm Technology Sector Portfolio consists of common stocks
of technology companies. The Trust is diversified across many technology sec-
tors including computers, computer networking, software and semiconductors.

Investment Objective. The objective of the Trust is capital appreciation. The
Trust will invest in a diversified portfolio of common stocks of technology
companies. Of course, there is no assurance that the Trust will achieve its
objective.

To construct the portfolio, Nuveen and Lehman follow these steps:

. select subgroups from the universe of Dow Jones Global Industry Groups;

. determine weighting of each subgroup within the portfolio;

. select the largest capitalization stocks within each subgroup and weight
them appropriately;

. check stocks for extraordinary corporate events that may prevent them from
meeting the portfolio's quality standards; and

. examine the next stock on the list in order of market capitalization, if a
stock is excluded.

The Technology Sector. The technological revolution continues to surge forward
at speeds once incomprehensible. A number of developments have combined to
fuel growth in this sector. The evolution and expansion of the Internet has
generated tremendous growth opportunity. Internet-driven worldwide revenue in
1996 was estimated at $19 billion; this spending should continue its growth as
Internet access increases. The emergence of sub-$1,000 PCs has expanded the
home computer market and driven the development of enhanced software for
smaller computers. Thus, the functionality and capabilities once available
only through high-end, costly hardware are now accessible to home users.

PC demand increases as users migrate or upgrade to faster, newer systems. The
demand surge surrounding the arrival of Microsoft Windows 95 should return
with Intel and Microsoft's 1998-1999 product introductions.

Securities Descriptions. [to come]

Investor Suitability. The Trust is a suitable investment for investors:

. seeking a unit trust concentrated in the common stock of technology compa-
nies; and

. seeking the opportunity to take advantage of the growth potential of tech-
nology companies.

The Trust is not a suitable investment if:

. you are unwilling to assume the risks inherent in investing in a portfolio
concentrated in the common stocks of technology companies.

- -------------------------------------------------------------------------------

SECTOR DIVERSIFICATION

<TABLE>
<S> <C>
Computers................................................................. %
Computer networking....................................................... %
Software.................................................................. %
Semiconductors............................................................ %
</TABLE>

Concentration Risk. The Trust is considered to be concentrated in the securi-
ties of technology companies. Such concentration may subject Unitholders to
greater market risk than other investment vehicles that have more diversified
portfolios. In particular, companies involved in the technology industry must
contend with rapidly changing technology, competition, rapid production obso-
lescence, cyclical market patterns, evolving industry standards and frequent
new product introductions. An unexpected change in one or more of the technol-
ogies affecting an issuer's products or in the market for products based on a
particular technology could have an adverse effect on an issuer's operating
results. In addition, operating results and customer relationships could be
adversely affected by an increase in price for, or an interruption or reduc-
tion in supply of, any key components and the failure of the issuer to comply
with rigorous industry standards. See "Risk Factors" herein and in Part B of
this Prospectus for an additional discussion of potential risks.

---
13
<PAGE>

- --------------------------------------------------------------------------------

NUVEEN UNIT TRUSTS, SERIES 18

Nuveen Dow Jonessm Technology Sector Portfolio, Series 1

Schedule of Investments at the Initial Date of Deposit, October , 1998

---
14
<PAGE>

Nuveen Communications Sector Portfolio, Series 1

The Nuveen Communications Sector Portfolio consists of common stocks of commu-
nications companies that the Sponsor believes are well-positioned to take ad-
vantage of the world's increasing demand for communications equipment. The
Trust is diversified across many communications industries including design,
distribution, manufacturing and sales of communications equipment.

Investment Objective. The objective of the Trust is capital appreciation. The
Trust will invest in a diversified portfolio of common stocks of communica-
tions companies. Of course, there is no assurance that the Trust will achieve
its objective.

To construct the portfolio, Nuveen and Lehman follow these steps:

. select Industry Groups from various indexes that comprise the sector;

. determine weighting of each Industry Group within the portfolio;

. select the largest capitalization stocks within each Industry Group and
weight them appropriately;

. assess stocks for attractive investment potential over the life of the
trust;

. check stocks for extraordinary corporate events that may prevent them from
meeting the portfolio's quality standards; and

. examine the next stock on the list in order of market capitalization, if a
stock is excluded.

The Communications Sector. Recent technological innovations and other industry
developments have combined to sustain demand and promote growth in the commu-
nications sector. Opportunities for communications companies have increased
greatly in recent years. In early 1998, telecommunications services markets
opened in 72 countries, representing 90% of worldwide industry revenues. The
expanded global market has the potential to boost the revenue prospects of
many U.S. telecommunications companies.

Increased demand in the wireless segment of the communications sector has also
fostered growth in the industry. Current technological advances that allow a
single device to provide numerous data and voice services have reduced
equipment requirements and helped increase demand for wireless devices. In
addition, deregulation has helped to fuel innovation and reduce costs. The
Sponsor believes that cheaper, more convenient wireless communications will
better penetrate the consumer marketplace and increase demand for these
services.

Although costlier than tradition means of providing data and voice services,
telecommunications companies have increased their reliance upon satellites to
provide such services. The use of satellites has increased the availability
and convenience of telecommunications services. Leaders around the world have
recognized the importance of this technology and have sought to help provide
for greater access to satellite technology services. In 1997, for instance,
185 countries met to discuss policy for making such services available world-
wide.

Securities Descriptions. [to come]

Investor Suitability. The Trust is a suitable investment for investors:

. seeking a unit trust concentrated in the common stock of communications com-
panies; and

. seeking the opportunity to take advantage of the growth potential of commu-
nications companies.

The Trust is not a suitable investment if:

. you are unwilling to assume the risks inherent in investing in a portfolio
concentrated in the common stocks of communications companies.

- -------------------------------------------------------------------------------

SECTOR DIVERSIFICATION

<TABLE>
<S> <C>
Wireline telecommunications............................................... %
Wireless telecommunications............................................... %
Communications equipment.................................................. %
</TABLE>

Concentration Risk. The Trust is considered to be concentrated in the securi-
ties of communications companies. Such concentration may subject Unitholders
to greater market risk than other investment vehicles that have more diversi-
fied portfolios. In particular, companies involved in the communications in-
dustry must contend with rapidly changing technology, competition, rapid pro-
duction obsolescence, cyclical market patterns, evolving industry standards,
deregulation and frequent new product introductions. See "Risk Factors" herein
and in Part B of this Prospectus for an additional discussion of potential
risks.

---
15
<PAGE>

- --------------------------------------------------------------------------------

NUVEEN UNIT TRUSTS, SERIES 18

Nuveen Communications Sector Portfolio, Series 1

Schedule of Investments at the Initial Date of Deposit, October , 1998

---
16
<PAGE>

Nuveen Consumer Electronics Sector Portfolio, Series 1

The Nuveen Consumer Electronics Sector Portfolio consists of common stocks of
consumer electronics companies that the Sponsor believes are well-positioned
to take advantage of the world's increasing demand for consumer electronics
equipment. The Trust is diversified across many consumer electronics indus-
tries including design, distribution, manufacturing and sales of consumer
electronic equipment.

Investment Objective. The objective of the Trust is capital appreciation. The
Trust will invest in a diversified portfolio of common stocks of consumer
electronics companies. Of course, there is no assurance that the Trust will
achieve its objective.

To construct the portfolio, Nuveen and Lehman follow these steps:

. select Industry Groups from various indexes that comprise the sector;

. determine weighting of each Industry Group within the portfolio;

. select the largest capitalization stocks within each Industry Group and
weight them appropriately;

. assess stocks for attractive investment potential over the life of the
trust;

. check stocks for extraordinary corporate events that may prevent them from
meeting the portfolio's quality standards; and

. examine the next stock on the list in order of market capitalization, if a
stock is excluded.

The Consumer Electronics Sector. Technological innovations and industry trends
have combined to sustain demand and promote growth in the consumer electronics
sector. Breakthroughs in digital and portable technology have helped to foster
this growth. Digital technology already enhances audio quality and will
heighten video performance before 2000. In response to consumer demand, digi-
tal televisions will hit stores by Fall 1998. Portable technology has freed
individuals from the constraints of stationary or cumbersome information de-
vices. Hand-held organizers and PCs are quickly becoming more commonplace and
will progress as consumer demand evolves. The increased usage of "virtual of-
fices," resulting in part from the access provided by the Internet, has also
helped to promote industry growth. In response, a wide variety of consumer
electronics designed to improve the efficiency of remote offices is now avail-
able.

Securities Descriptions. [to come]

Investor Suitability. The Trust is a suitable investment for investors:

. seeking a unit trust concentrated in the common stock of consumer electron-
ics companies; and

. seeking the opportunity to take advantage of the growth potential of con-
sumer electronics companies.

The Trust is not a suitable investment if:

. you are unwilling to assume the risks inherent in investing in a portfolio
concentrated in the common stocks of consumer electronics companies.

- -------------------------------------------------------------------------------

SECTOR DIVERSIFICATION

<TABLE>
<S> <C>
Manufacturing............................................................. %
Retail.................................................................... %
Technological development................................................. %
</TABLE>

Concentration Risk. The Trust is considered to be concentrated in the securi-
ties of consumer electronics companies. Such concentration may subject
Unitholders to greater market risk than other investment vehicles that have
more diversified portfolios. In particular, companies involved in the semicon-
ductor industry must contend with rapidly changing technology, competition,
rapid production obsolescence, cyclical market patterns, evolving industry
standards and frequent new product introductions. See "Risk Factors" herein
and in Part B of this Prospectus for an additional discussion of potential
risks.

---
17
<PAGE>

- --------------------------------------------------------------------------------

NUVEEN UNIT TRUSTS, SERIES 18

Nuveen Consumer Electronics Sector Portfolio, Series 1

Schedule of Investments at the Initial Date of Deposit, October , 1998

---
18
<PAGE>

Nuveen Internet Sector Portfolio, Series 1

The Nuveen Internet Sector Portfolio consists of common stocks of Internet
companies that the Sponsor believes are well-positioned to take advantage of
the world's increasing demand for Internet products and services. The Trust is
diversified across many Internet products and services industries including
browser software, networking equipment, service provider and network security.

Investment Objective. The objective of the Trust is capital appreciation. The
Trust will invest in a diversified portfolio of common stocks of Internet com-
panies. Of course, there is no assurance that the Trust will achieve its ob-
jective.

To construct the portfolio, Nuveen and Lehman follow these steps:

. select Industry Groups from various indexes that comprise the sector;

. determine weighting of each Industry Group within the portfolio;

. select the largest capitalization stocks within each Industry Group and
weight them appropriately;

. assess stocks for attractive investment potential over the life of the
trust;

. check stocks for extraordinary corporate events that may prevent them from
meeting the portfolio's quality standards; and

. examine the next stock on the list in order of market capitalization, if a
stock is excluded.

The Internet Sector. The Internet is one of the most rapidly expanding commer-
cial phenomena ever witnessed. Recent industry trends have stimulated both
growth and demand. The number of users of the Internet has grown exponential-
ly. Recent rapid growth in the personal computer industry has increased
Internet growth potential through an expanded universe of users as personal
computers are the most prevalent gateway to the Internet. Despite the in-
creased popularity of the Internet, only 18% of U.S. households and 132 coun-
tries worldwide were accessing the Internet at the end of 1997. The Sponsor
believes that this low rate of penetration indicates great potential for
Internet growth.

Securities Descriptions. [to come]

Investor Suitability. The Trust is a suitable investment for investors:

. seeking a unit trust concentrated in the common stock of Internet companies;
and

. seeking the opportunity to take advantage of the growth potential of
Internet companies.

The Trust is not a suitable investment if:

. you are unwilling to assume the risks inherent in investing in a portfolio
concentrated in the common stocks of Internet companies.

- -------------------------------------------------------------------------------

SECTOR DIVERSIFICATION

<TABLE>
<S> <C>
Browser software.......................................................... %
Networking equipment...................................................... %
Internet service providers................................................ %
Network security.......................................................... %
</TABLE>

Concentration Risk. The Trust is considered to be concentrated in the securi-
ties of Internet companies. Such concentration may subject Unitholders to
greater market risk than other investment vehicles that have more diversified
portfolios. In particular, companies involved in the Internet industry must
contend with rapidly changing technology, competition, rapid production obso-
lescence, cyclical market patterns, evolving industry standards and frequent
new product introductions. An unexpected change in one or more of the technol-
ogies affecting an issuer's products or in the market for products based on a
particular technology could have an adverse effect on an issuer's operating
results. In addition, operation results and customer relationships could be
adversely affected by an increase in price for, or an interruption or reduc-
tion in supply of, any key components and the failure of the issuer to comply
with evolving industry standards. See "Risk Factors" herein and in Part B of
this Prospectus for an additional discussion of potential risks.

---
19
<PAGE>

- --------------------------------------------------------------------------------

NUVEEN UNIT TRUSTS, SERIES 18

Nuveen Internet Sector Portfolio, Series 1

Schedule of Investments at the Initial Date of Deposit, October , 1998

---
20
<PAGE>

Nuveen Dow Jonessm

Precious Metals Sector Portfolio, Series 1

The Nuveen Dow Jonessm Precious Metals Sector Portfolio consists of common
stocks of precious metals companies. The Trust is diversified across the pre-
cious metals industry including mining, processing, exploration and property
development.

Investment Objective. The objective of the Trust is capital appreciation. The
Trust will invest in a diversified portfolio of common stocks of precious met-
als companies. Of course, there is no assurance that the Trust will achieve
its objective.

To construct the portfolio, Nuveen and Lehman follow these steps:

. select subgroups from the universe of Dow Jones Global Industry Groups;

. determine weighting of each subgroup within the portfolio;

. select the largest capitalization stocks within each subgroup and weight
them appropriately;

. check stocks for extraordinary corporate events that may prevent them from
meeting the portfolio's quality standards; and

. examine the next stock on the list in order of market capitalization, if a
stock is excluded.

The Precious Metals Sector. Precious metals companies may offer an ideal way
to diversify an investment portfolio and may serve as a potential hedge
against inflation. Precious metals companies may also provide good downside
protection. Exploration success can potentially lead to strong growth for pre-
cious metals companies, even during relatively flat economic periods for the
industry. Of course, there can be no guarantee that exploration efforts, which
are speculative and expensive, by any company will be successful beyond explo-
ration success. If demand for precious metals increases faster than supply,
precious metals companies may be in a position to benefit.

Securities Descriptions. [to come]

Investor Suitability. The Trust is a suitable investment for investors:

. seeking a unit trust concentrated in the common stock of companies in the
precious metals industry; and

. seeking the opportunity to take advantage of the growth potential of
companies in the precious metals industry.

The Trust is not a suitable investment if:

. you are unwilling to assume the risks inherent in investing in a portfolio
concentrated in the common stocks of companies in the precious metals indus-
try.

- -------------------------------------------------------------------------------

SECTOR DIVERSIFICATION

<TABLE>
<S> <C>
Mining.................................................................... %
Processing................................................................ %
Exploration............................................................... %
Property development...................................................... %
</TABLE>

Concentration Risk. The Trust is considered to be concentrated in the securi-
ties of companies in the precious metals industry. Such concentration may sub-
ject Unitholders to greater market risk than other investment vehicles that
have more diversified portfolios. In particular, companies involved in the
precious metals industry must contend with extensive regulation, substantial
price fluctuations, unpredictable international monetary and other governmen-
tal policies and currency issues. See "Risk Factors" herein and in Part B of
this Prospectus for an additional discussion of potential risks.

---
21
<PAGE>

- --------------------------------------------------------------------------------

NUVEEN UNIT TRUSTS, SERIES 18

Nuveen Dow JonesSM Precious Metals Sector Portfolio, Series 1

Schedule of Investments at the Initial Date of Deposit, October , 1998

---
22
<PAGE>

Nuveen Retail Sector Portfolio, Series 1

The Nuveen Retail Sector Portfolio consists of common stocks of companies in
the retail industry. The Trust is diversified across the retail industry in-
cluding general retailers, specialty retailers and retail manufacturers.

Investment Objective. The objective of the Trust is capital appreciation. The
Trust will invest in a diversified portfolio of common stocks of companies in
the retail industry. Of course, there is no assurance that the Trust will
achieve its objective.

To construct the portfolio, Nuveen and Lehman follow these steps:

. select Industry Groups from various indexes that comprise the sector;

. determine weighting of each Industry Group within the portfolio;

. select the largest capitalization stocks within each Industry Group and
weight them appropriately;

. assess stocks for attractive investment potential over the life of the
trust;

. check stocks for extraordinary corporate events that may prevent them from
meeting the portfolio's quality standards; and

. examine the next stock on the list in order of market capitalization, if a
stock is excluded.

The Retail Sector. A number of economic and industry trends have stimulated
consumer spending, resulting in rising retail sales. The Sponsor believes that
increasing population, expanding retail markets and better customer data
should increase the growth potential of the retail sector. This decade has
seen especially high immigration rates, an expanding teen-aged population and
increased birth rates which should all expand the consumer market for retail-
ers. In addition, the Internet has provided consumers around the world with
faster, more convenient access to a wider variety of retail markets. In fact,
industry experts predict that over half of all retail purchases will be made
on-line by 2010. Also, retailers can now utilize extensive data warehouses to
better understand customer needs, forecast demand and manage inventory. This
makes retailers more efficient and better able to attract consumer spending.

Securities Descriptions. [to come]

Investor Suitability. The Trust is a suitable investment for investors:

. seeking a unit trust concentrated in the common stock of companies in the
retail industry; and

. seeking the opportunity to take advantage of the growth potential of
companies in the retail industry.

The Trust is not a suitable investment if:

. you are unwilling to assume the risks inherent in investing in a portfolio
concentrated in the common stocks of companies in the retail industry.

- -------------------------------------------------------------------------------

SECTOR DIVERSIFICATION

<TABLE>
<S> <C>
Specialty retailers....................................................... %
General retailers......................................................... %
Retail manufacturers...................................................... %
</TABLE>

Concentration Risk. The Trust is considered to be concentrated in the securi-
ties of companies in the retail industry. Such concentration may subject
Unitholders to greater market risk than other investment vehicles that have
more diversified portfolios. In particular, companies involved in the retail
industry may be affected by intense competition, cyclical market patterns,
changing consumer spending trends, and the state of the economy. See "Risk
Factors" herein and in Part B of this Prospectus for an additional discussion
of potential risks.

---
23
<PAGE>

- --------------------------------------------------------------------------------

NUVEEN UNIT TRUSTS, SERIES 18

Nuveen Retail Sector Portfolio, Series 1

Schedule of Investments at the Initial Date of Deposit, October , 1998

---
24
<PAGE>

Risk Factors

Risk is inherent in all investing. Investing in a unit trust involves risk, in-
cluding the risk that you may receive little or no return on your investment or
even that you may lose part or all of your investment. Therefore, before in-
vesting you should consider carefully the following risks that you assume when
you invest in a Trust. Because of these and other risks, a Trust should only
represent a portion of your overall portfolio and you should consider an in-
vestment in a Trust to be a part of a longer term investment strategy that will
provide the best results when followed over a number of years. There is no
guarantee that a Trust will achieve its investment objective.

Market risk: the risk that the market value of a stock or a Trust may change
rapidly and unpredictably, causing the stock or a Trust to be worth less than
its original price. Volatility in the market price of the Securities in a Trust
changes the value of the Units of a Trust. Market value may be affected by a
variety of factors, including, among others, general stock market movements,
changes in the perceptions about the issuers, changes in interest rates or in-
flation, or changes in the financial condition of the issuers of the Securi-
ties. The equity markets tend to have periods of generally rising prices and
periods of generally falling prices and are currently at historically high lev-
els. Because the Trusts are not managed, Securities in each Trust will gener-
ally not be sold in response to market fluctuations, although Securities may be
sold in certain limited circumstances. Accordingly, an investor in a Trust may
be exposed to more market risk than an investor in certain managed investment
vehicles. In addition, the concentration of each Trust in a particular industry
sector may subject Unitholders to greater market risk than other investment ve-
hicles that have more diversified portfolios.

Inflation risk: the risk that the value of assets or income from investments
will be less in the future as inflation decreases the value of money. As infla-
tion increases, the value of a Trust's assets can decline as can the value of a
Trust's distributions.

Foreign investment risk: Securities issued by foreign companies or governments
present risks beyond those of securities of U.S. issuers. Such risks include
political or economic instability and less publicly available information about
foreign companies. Prices of foreign securities also may be more volatile and
they may be less liquid than their U.S. counterparts.

Note that each Trust is considered to be concentrated in the securities of
their respective sectors and accordingly are exposed to additional risks. See
"Risk Factors" in Part B of this Prospectus for an additional discussion of po-
tential risks.

Distributions

INCOME AND CAPITAL DISTRIBUTIONS

Cash dividends received by a Trust will be paid each June 30 and December 31
("Income Distribution Dates"), beginning December 31, 1998, to Unitholders of
record each June 15 and December 15 ("Income Record Dates"), respectively. Dis-
tributions of funds in the Capital Account, if any, will be made as part of the
final liquidation distribution, if applicable, and in certain circumstances,
earlier. Any distribution of income and/or capital will be net of expenses of a
Trust. Additionally, upon termination of a Trust, the Trustee will distribute,
upon surrender of Units, to each remaining Unitholder his pro rata share of a
Trust's assets, less expenses, in the manner set forth under "Distributions To
Unitholders" in Part B of this Prospectus. Any Unitholder may elect to have
each distribution of income or capital on his Units, other than the final liq-
uidating distribution, automatically reinvested in additional Units of the
Trust subject only to applicable remaining deferred sales charge payments. See
"Distributions to Unitholders" in Part B of this Prospectus.

Investing in the Trusts

SALES CHARGES

The maximum sales charge of 4.50% of the public offering price consists of an
initial sales charge equal to the difference between the maximum sales charge
of 4.50% and the maximum remaining deferred sales charge, initially $0.35 per
Unit, and any remaining deferred sales charge. Unitholders will be assessed a
deferred sales charge of $0.35 per Unit, in installments of $0.07 per Unit pay-
able on the last business day of each month, over the period commencing ,
1998 through , 1999.

---
25
<PAGE>

Unitholders that purchase more than 5,000 Units are entitled to reduced sales
charges. In addition, certain classes of investors are entitled to purchase
Units at reduced sales charges. See "Public Offering Price" in Part B of this
Prospectus. Sales charges for larger single transactions (including deferred
sales charges) are as follows:

- -------------------------------------------------------------------------------

SALES CHARGES
<TABLE>
<CAPTION>
Total Percent***
Initial Deferred Maximum of Net
Sales Sales Sales Amount
Number of Units* Charge** Charge Charge++ Invested
- ---------------- -------- -------- -------- ----------
<S> <C> <C> <C> <C>
Less than 5,000........................... 1.00% $0.35 4.50% 4.545%
5,000 to 9,999............................ 0.75% $0.35 4.25% 4.293%
10,000 to 24,999.......................... 0.50% $0.35 4.00% 4.040%
25,000 to 49,999.......................... 0.00% $0.35 3.50% 3.535%
50,000 or more ........................... 0.00% $0.35 2.50%+ %
Rollover (per Unit)....................... 0.00% $0.35 $0.35 3.535%
Wrap Accounts............................. 0.00% $0.35 2.40%+ 2.424%
</TABLE>

*Breakpoint sales charges are computed both on a dollar basis and on the basis
of the number of Units purchased, using the equivalent of 5,000 Units to
$50,000, 10,000 Units to $100,000 etc., and will be applied on that basis
which is more favorable to the purchaser.

**Based upon a $10.00 Public Offering Price. This will fluctuate based upon
the Public Offering Price of the Units at the time of purchase and the date of
purchase.

***Percent of Net Amount Invested is based on the price as of the Initial Date
of Deposit. To the extent Units are priced differently, the Percent of Net
Amount Invested will be
affected.

+All Units of the Trusts will be subject to the applicable deferred sales
charge per Unit regardless of sales charge discounts. Investors who, as a re-
sult of sales charge discounts, are eligible to purchase Units subject to a
maximum total sales charge less than the applicable maximum deferred sales
charge will be credited the difference between these amounts at the time of
purchase.

++Offering Price per Unit is rounded to the nearest cent and accordingly the
actual sales charge paid by an investor may be slightly greater or less than
the amounts reflected.

DEALER CONCESSIONS

The Sponsor plans to allow a discount to dealer firms in connection with the
distribution of Units. The discounts, based on number of Units sold, are pro-
vided below.

- -------------------------------------------------------------------------------

DEALER CONCESSIONS

<TABLE>
<CAPTION>
% DISCOUNT
NUMBER OF UNITS* PER UNIT
- ---------------- ----------
<S> <C>
Less than 5,000...................................................... 3.50%
5,000 to 9,999....................................................... 3.25
10,000 to 24,999..................................................... 3.00
25,000 to 49,999..................................................... 2.50
50,000 or more....................................................... 1.50
Rollover............................................................. 0.25
Wrap Accounts........................................................ 0.00
</TABLE>
*Breakpoint sales charges are computed both on a dollar basis and on the basis
of the number of Units purchased, using the equivalent of 5,000 Units to
$50,000, 10,000 Units to $100,000 etc., and will be applied on that basis
which is more favorable to the purchaser and may result in a reduction in the
discount per Unit.

General Information

OPTIONAL FEATURES

REDEMPTIONS

Units may be redeemed on any business day at their current market value. Units
tendered for redemption prior to such time as the entire deferred sales charge
on such Units has been collected will be assessed the remaining deferred sales
charge at the time of redemption. During the initial offering period, the Re-
demption Price per Unit includes estimated organizational and offering costs
per Unit. After the initial offering period, the Redemption Price will not in-
clude such estimated organizational and offering costs.

LETTER OF INTENT (LOI)

Investors may use a Letter of Intent to get reduced sales charges on purchases
made over a 13-month period (and to take advantage of dollar cost averaging).
The minimum LOI investment is $50,000. See "Public Offering Price" in Part B
of this Prospectus.

REINVESTMENT

Distributions from a Trust can be reinvested with no sales charge into Nuveen
mutual or money market funds. Also, income and certain capital distributions
from a Trust can be reinvested at a reduced sales charge into additional Units
of the Trust. See "Distributions to Unitholders" and "Accumulation Plan" in
Part B of this Prospectus. In addition, Unit trust purchases may be applied
toward breakpoint pricing discounts for Nuveen Mutual Funds. For more informa-
tion about Nuveen investment products, obtain a prospectus from your financial
adviser.

SECONDARY MARKET FOR UNITS

Although not obligated to do so, the Sponsor may maintain a market for Units
and offer to repurchase the Units at prices based on the aggregate value of
the Securities, plus or minus cash, if any, in the Capital and Income Accounts
of a Trust plus a sales charge as set forth above in "Investing in the
Trusts--Sales Charges." During the initial offering period, the price at which
the

---
26
<PAGE>

Sponsor expects to repurchase Units (the "Sponsor's Repurchase Price") includes
estimated organizational and offering costs per Unit. After the initial offer-
ing period, the Sponsor's Repurchase Price will not include such estimated or-
ganizational and offering costs. If a secondary market is not maintained, a
Unitholder may still redeem his Units through the Trustee. See "Redemption" in
Part B of this Prospectus. Any applicable deferred sales charge remaining on
Units at the time of their sale or redemption will be collected at that time.

TERMINATION

Commencing on the Mandatory Termination Date, the Equity Securities will begin
to be sold as prescribed by the Sponsor. The Trustee will provide written no-
tice of the termination to Unitholders which will specify when certificates may
be surrendered. Unitholders not electing the "Rollover Option" or a distribu-
tion of shares will receive a cash distribution within a reasonable time after
a Trust's termination. See "Distributions to Unitholders" and "Other Informa-
tion--Termination of Indenture" in Part B of this
Prospectus.

THE SPONSOR

Since our founding in 1898, John Nuveen & Co. Incorporated has been synonymous
with investments that withstand the test of time. Today, we offer a range of
equity and fixed-income unit trusts designed to suit the unique circumstances
and financial planning needs of mature investors. Nuveen, a leader in tax-effi-
cient investing, believes that a carefully selected portfolio can play an im-
portant role in building and sustaining the wealth of a lifetime. More than 1.3
million investors have trusted Nuveen to help them maintain the lifestyle they
currently enjoy.

The prospectus describes in detail the investment objectives, policies and
risks of a Trust. We invite you to discuss the contents with your
financial adviser, or you may call us at
800-257-8787 for additional information.

---
27
<PAGE>

- -------------------------------------------------------------------------------

NOTES TO PORTFOLIOS

(1) All Securities are represented by regular way contracts to purchase such
Securities for the performance of which an irrevocable letter of credit
has been deposited with the Trustee. The contracts to purchase the Securi-
ties were entered into by the Sponsor on , 1998.

(2) The cost of the Securities to a Trust represents the aggregate underlying
value with respect to the Securities acquired (generally determined by the
last sale prices of the listed Securities on the business day preceding
the Initial Date of Deposit). The valuation of the Securities has been de-
termined by the Trustee. For each Trust, the aggregate underlying value of
the Securities on the Initial Date of Deposit, the Cost of the Securities
to the Sponsor, and the Sponsor's gain or (loss) relating to the Securi-
ties sold to each Trust are as follows:

<TABLE>
<CAPTION>
VALUE OF COST TO GAIN
SECURITIES SPONSOR (LOSS)
---------- --------- ---------
<S> <C> <C> <C>
Energy Sector Portfolio
Financial Services Sector Portfolio
Pharmaceuticals Sector Portfolio
Technology Sector Portfolio
Semiconductor Sector Portfolio
Communications Sector Portfolio
Consumer Electronics Sector Portfolio
Internet Sector Portfolio
Precious Metals Sector Portfolio
Retail Sector Portfolio
</TABLE>

(3) Current Dividend Yield for each Security was calculated by annualizing the
last quarterly or semi-annual ordinary dividend declared on that Security
and dividing the result by that Security's closing sale price on the busi-
ness day prior to the Initial Date of Deposit.

---
28
<PAGE>

- -------------------------------------------------------------------------------

Nuveen Unit Trusts, Series 18

Statements of Condition at the Initial Date of Deposit, October , 1998

<TABLE>
<CAPTION>
FINANCIAL
ENERGY SERVICES PHARMACEUTICALS SEMICONDUCTOR TECHNOLOGY
SECTOR SECTOR SECTOR SECTOR SECTOR
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------------- ------------- ----------
<S> <C> <C> <C> <C> <C>
TRUST PROPERTY
Investment in Equity Se-
curities represented by
purchase con-
tracts(1)(2)........... $ $ $ $ $
======== ======== ======== ======== ========
LIABILITIES AND INTEREST
OF UNITHOLDERS
LIABILITIES:
Deferred sales
charge(3)............ $ $ $ $ $
Estimated organiza-
tional and offering
costs(4).............
-------- -------- -------- -------- --------
Total.............. $ $ $ $ $
======== ======== ======== ======== ========
INTEREST OF UNITHOLDERS:
Unit of fractional un-
divided interest out-
standing.............
Cost to investors(5).. $ $ $ $ $
Less: Gross under-
writing commis-
sion(6).............
Less: Estimated orga-
nizational and of-
fering costs(4)..... $ $ $ $ $
-------- -------- -------- -------- --------
Net amount applicable
to investors......... $ $ $ $ $
======== ======== ======== ======== ========
Total.............. $ $ $ $ $
======== ======== ======== ======== ========
</TABLE>
- ---------

(1) Aggregate cost of Securities listed under "SCHEDULE OF INVESTMENTS" is
based on their aggregate underlying value.

(2) An irrevocable letter of credit has been deposited with the Trustee as
collateral, which is sufficient to cover the monies necessary for the pur-
chase of the Securities pursuant to contracts for the purchase of such Se-
curities.

(3) Represents the amount of mandatory distributions from a Trust ($0.35 per
Unit), payable to the Sponsor in five equal monthly installments of $0.07
per Unit beginning on , 1998, and on the last business day of each
month thereafter through , 1999.

(4) A portion of the Public Offering Price consists of Securities in an amount
sufficient to pay for all or a portion of the costs incurred in establish-
ing a Trust. These costs have been estimated at $ per Unit, based upon
the expected number of Units of a Trust to be created. A distribution will
be made at the end of the initial offering period to an account maintained
by the Trustee from which the organizational and offering cost obligation
of the investors to the Sponsor will be satisfied. Securities may be sold
to meet this obligation. To the extent the number of Units issued is
larger or smaller than the estimate, the actual distribution per Unit at
the end of the initial offering period may differ from that set forth
herein.

(5) Aggregate Public Offering Price computed as set forth under "PUBLIC OFFER-
ING PRICE" in Part B of this Prospectus.

(6) The gross underwriting commission of 4.50% of the Public Offering Price on
the initial date of deposit includes both an up-front and a deferred sales
charge and has been calculated on the assumption that the Units sold are
not subject to a reduction of sales charges for quantity purchases. In
single transactions involving 5,000 Units or more, the sales charge is re-
duced. (See "PUBLIC OFFERING PRICE" in Part B of this Prospectus.)

---
29
<PAGE>

- -------------------------------------------------------------------------------

Nuveen Unit Trusts, Series 18

Statements of Condition at the Initial Date of Deposit, October , 1998
(Continued)

<TABLE>
<CAPTION>
CONSUMER PRECIOUS
COMMUNICATIONS ELECTRONICS INTERNET METALS RETAIL
SECTOR SECTOR SECTOR SECTOR SECTOR
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ----------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
TRUST PROPERTY
Investment in Equity
Securities represented
by purchase
contracts(1)(2)........ $ $ $ $ $
======== ======== ======== ======== ========
LIABILITIES AND INTEREST
OF UNITHOLDERS
LIABILITIES:
Deferred sales
charge(3)............ $ $ $ $ $
Estimated
organizational and
offering costs(4)....
-------- -------- -------- -------- --------
Total.............. $ $ $ $ $
======== ======== ======== ======== ========
INTEREST OF UNITHOLDERS:
Unit of fractional
undivided interest
outstanding..........
Cost to investors(5).. $ $ $ $ $
Less: Gross
underwriting
commission(6).......
Less: Estimated
organizational and
offering costs(4)... $ $ $ $ $
-------- -------- -------- -------- --------
Net amount applicable
to investors......... $ $ $ $ $
======== ======== ======== ======== ========
Total.............. $ $ $ $ $
======== ======== ======== ======== ========
</TABLE>
- ---------

(1) Aggregate cost of Securities listed under "SCHEDULE OF INVESTMENTS" is
based on their aggregate underlying value.

(5) Aggregate Public Offering Price computed as set forth under "PUBLIC OFFER-
ING PRICE" in Part B of this Prospectus.

---
30
<PAGE>

Report of Independent Public Accountants

To the Board of Directors of John Nuveen & Co. Incorporated and Unitholders of
Nuveen Unit Trusts, Series 18:

We have audited the accompanying statements of condition, the schedules of in-
vestments at date of deposit (included in Part A of this Prospectus) and the
related portfolios of Nuveen Unit Trusts, Series 18 as of October , 1998.
These financial statements are the responsibility of the Sponsor. Our respon-
sibility is to express an opinion on these financial statements based on our
audit.

We conducted our audit in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of mate-
rial misstatement. An audit includes examining, on a test basis, evidence sup-
porting the amounts and disclosures in the financial statements. Our proce-
dures included confirmation of the irrevocable letter of credit arrangement
for the purchase of securities, described in Note (2) to the statement of con-
dition, by correspondence with the Trustee. An audit also includes assessing
the accounting principles used and significant estimates made by the Sponsor,
as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.

In our opinion, the statements of condition and the schedules of investments
at date of deposit referred to above present fairly, in all material respects,
the financial position of Nuveen Unit Trusts, Series 18, as of October ,
1998, in conformity with generally accepted accounting principles.

ARTHUR ANDERSEN LLP

Chicago, Illinois

October , 1998.

---
31
<PAGE>

NUVEEN UNIT TRUSTS
NUVEEN SECTOR UNIT TRUST PROSPECTUS --
PART B
(GENERAL TERMS)

OCTOBER , 1998

This Part B of the Prospectus may not be distributed unless accompanied by
Part A. Both Parts of this Prospectus should be retained for future reference.

Further detail regarding certain of the information provided in the
Prospectus may be obtained within five business days of written or telephonic
request to the Trustee at 4 New York Plaza, New York, NY 10004-2413 or (800)
257-8787.

Currently offered at Public Offering Price plus accumulated dividends
accrued to the date of settlement. Minimum purchase--either $1,000 or 100
Units ($500 or nearest whole number of Units whose value is less than $500 for
Education IRA purchases), whichever is less.

THIS NUVEEN UNIT TRUST SERIES consists of the underlying separate unit
investment trusts set forth in the respective Part A to this Prospectus. Each
Trust initially consists of delivery statements relating to contracts to
purchase securities and, thereafter, will consist of a portfolio of common
stocks of companies described in the applicable Part A of the Prospectus (see
"Schedule of Investments" in Part A of the Prospectus). Except in specific
instances as noted in Part A of the Prospectus, the information contained in
this Part B shall apply to each Trust in its entirety. For a discussion of the
Sponsor's obligations in the event of a failure of any contract for the
purchase of any of the Securities and its limited right to substitute other
securities to replace any failed contract, see "COMPOSITION OF TRUSTS."

DIVIDEND AND CAPITAL DISTRIBUTIONS. Cash dividends received by the Trust
will be paid on those dates set forth under "Distributions" in Part A of the
Prospectus. Distributions of funds in the Capital Account, if any, will be
made as part of the final liquidation distribution, if applicable, and in
certain circumstances, earlier.

THE PUBLIC OFFERING PRICE per Unit of each Trust during the initial offering
period is generally equal to a pro rata share of the aggregate underlying
value of the Securities in such Trust's portfolio (generally determined by the
closing sale prices of the listed Securities and the ask prices of over-the-
counter traded Securities) plus or minus cash, if any, in the Income and
Capital Accounts of the Trust, plus a sales charge as set forth in Part A of
the Prospectus and is rounded to the nearest cent. In addition, a portion of
the Public Offering Price during the initial offering period also consists of
Securities in an amount sufficient to pay for all or a portion of the costs
incurred in establishing a Trust. The organizational and offering costs will
be deducted from the assets of the Trust as of the close of the initial
offering period. See "Trust Summary and Financial Highlights" in Part A of the
Prospectus. The Secondary Market Public Offering Price per Unit for each Trust
will generally be equal to a pro rata share of the aggregate underlying value
of the Securities in such Trust (generally determined by the closing sale
prices of the listed Securities and the bid prices of over-the-counter traded
Securities) plus the sales charges as set forth in Part A of the Prospectus. A
pro rata share of accumulated dividends, if any, in the Income Account from
the preceding Record Date to, but not including, the settlement date (normally
three business days after purchase) is added to the Public Offering Price. The
sales charge is reduced on a graduated scale for sales involving at least the
number of Units set forth in Part A of this Prospectus.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.

<PAGE>

A UNITHOLDER MAY REDEEM UNITS at the office of the Trustee at prices based
upon the aggregate underlying value of the Securities (generally determined by
the closing sale prices of listed Securities and the bid prices of over-the-
counter traded Securities). During the initial offering period, the Redemption
Price per Unit includes estimated organizational and offering costs per Unit.
After the initial offering period, the Redemption Price will not include such
estimated organizational and offering costs. See "Trust Summary and Financial
Highlights" in Part A of the Prospectus. The price received upon redemption may
be more or less than the amount paid by Unitholders, depending upon the value
of the Securities on the date of tender for redemption. (See "REDEMPTION.") The
Sponsor, although not required to do so, may make a secondary market for the
Units of the Trusts at prices based upon the aggregate underlying value of the
Securities in the respective Trusts (generally determined by the closing sale
prices of listed Securities and the bid prices of over-the-counter traded
Securities). Units subject to a deferred sales charge which are tendered for
redemption prior to such time as the entire deferred sales charge on such Units
has been collected will be assessed the amount of the applicable remaining
deferred sales charge at the time of redemption. (See "MARKET FOR UNITS.")

2
<PAGE>

TABLE OF CONTENTS

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
NUVEEN UNIT TRUSTS......................................................... 4
COMPOSITION OF TRUSTS...................................................... 5
RISK FACTORS............................................................... 5
PUBLIC OFFERING PRICE...................................................... 12
MARKET FOR UNITS........................................................... 15
EVALUATION OF SECURITIES AT THE INITIAL DATE OF DEPOSIT.................... 16
TAX STATUS................................................................. 16
RETIREMENT PLANS........................................................... 20
TRUST OPERATING EXPENSES................................................... 20
DISTRIBUTIONS TO UNITHOLDERS............................................... 21
ACCUMULATION PLAN.......................................................... 22
REPORTS TO UNITHOLDERS..................................................... 23
UNIT VALUE AND EVALUATION.................................................. 23
DISTRIBUTIONS OF UNITS TO THE PUBLIC....................................... 24
OWNERSHIP AND TRANSFER OF UNITS............................................ 25
REPLACEMENT OF LOST, STOLEN OR DESTROYED CERTIFICATES...................... 25
REDEMPTION................................................................. 26
SPECIAL REDEMPTION, LIQUIDATION AND INVESTMENT IN A NEW TRUST.............. 27
PURCHASE OF UNITS BY THE SPONSOR........................................... 29
REMOVAL OF SECURITIES FROM THE TRUSTS...................................... 29
INFORMATION ABOUT THE TRUSTEE.............................................. 30
LIMITATIONS ON LIABILITIES OF SPONSOR AND TRUSTEE.......................... 30
SUCCESSOR TRUSTEES AND SPONSORS............................................ 30
INFORMATION ABOUT THE SPONSOR.............................................. 31
OTHER INFORMATION.......................................................... 31
LEGAL OPINION.............................................................. 32
AUDITORS................................................................... 32
SUPPLEMENTAL INFORMATION................................................... 32
</TABLE>

3
<PAGE>

NUVEEN UNIT TRUSTS

This Nuveen Unit Trust is one of a series of separate but similar investment
companies created by the Sponsor, each of which is designated by a different
Series number. The underlying unit investment trusts contained in this Series
are combined under one Trust Indenture and Agreement. Specific information
regarding each Trust is set forth in Part A of this Prospectus. The various
Nuveen Unit Trusts are collectively referred to herein as the "Trusts." This
Series was created under the laws of the State of New York pursuant to a Trust
Indenture and Agreement dated the Initial Date of Deposit (the "Indenture")
between John Nuveen & Co. Incorporated ("Nuveen" or the "Sponsor") and The
Chase Manhattan Bank (the "Trustee").

The Sponsor has deposited with the Trustee delivery statements relating to
contracts for the purchase of common stocks of the companies described in the
applicable Part A of the Prospectus, together with funds represented by an
irrevocable letter of credit issued by a major commercial bank in the amount
required for their purchase (or the securities themselves) (the "Securities").
See "Schedule of Investments" in Part A of the Prospectus, for a description
of the Securities deposited in the applicable Trust. See also, "Trust
Strategies" and "Risk Factors" in Part A of the Prospectus.

The Trustee has delivered to the Sponsor registered Units which represent
ownership of the entire Trust, and which are offered for sale by this
Prospectus. Each Unit of a Trust represents a fractional undivided interest in
the Securities deposited in such Trust in the ratio set forth in "Essential
Information" in Part A of this Prospectus. Units may only be sold in states in
which they are registered. To the extent that any Units of any Trust are
redeemed by the Trustee, the aggregate value of the Trust's assets will
decrease by the amount paid to the redeeming Unitholder, but the fractional
undivided interest of each unredeemed Unit in such Trust will increase
proportionately. The Sponsor will initially, and from time to time thereafter,
hold Units in connection with their offering.

Additional Units of a Trust may be issued from time to time following the
Initial Date of Deposit by depositing in such Trust additional Securities (or
contracts therefore backed by an irrevocable letter of credit or cash) or cash
(including a letter of credit) with instructions to purchase additional
Securities in the Trust. As additional Units are issued by a Trust as a result
of the deposit of additional Securities or cash by the Sponsor, the aggregate
value of the Securities in a Trust will be increased and the fractional
undivided interest in such Trust represented by each Unit will be decreased.
The Sponsor may continue to make additional deposits of Securities, or cash
with instructions to purchase additional Securities, into a Trust following
the Initial Date of Deposit, provided that such additional deposits will be in
amounts which will maintain, within reasonable parameters, the same original
proportionate relationship among the Securities in such Trust established on
the Initial Date of Deposit. Thus, although additional Units will be issued,
each Unit will continue to represent the same proportionate amount of each
Security. To the extent that any Units are redeemed by the Trustee or
additional Units are issued as a result of additional Securities or cash being
deposited by the Sponsor, the fractional undivided interest in a Trust
represented by each unredeemed Unit will decrease or increase accordingly,
although the actual interest in such Trust represented by such fraction will
remain unchanged. If the Sponsor deposits cash, however, existing and new
investors may experience a dilution of their investment and a reduction in
their anticipated income because of fluctuations in the price of the
Securities between the time of the cash deposit and the purchase of the
Securities and because the Trust will pay the associated brokerage fees. To
minimize this effect, the Trust will try to purchase the Securities as close
to the evaluation time or as close to the evaluation price as possible. Units
will remain outstanding until redeemed upon tender to the Trustee by
Unitholders, which may include the Sponsor, or until termination of the Trust
Agreement.

The Sponsor may realize a profit (or sustain a loss) as of the opening of
business on the Initial Date of Deposit resulting from the difference between
the purchase prices of the Securities and the cost of such Securities to the
Trust, which is based on the evaluation of the Securities as of the opening of

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business on the Initial Date of Deposit. (See "Schedule of Investments" in
Part A of the Prospectus.) The Sponsor may also be considered to have realized
a profit or to have sustained a loss, as the case may be, in the amount of any
difference between the cost of the Securities to the Trust (which is based on
the Evaluator's determination of the aggregate value of the underlying
Securities of the Trust) on the subsequent date(s) of deposit and the cost of
such Securities to Nuveen, if applicable.

COMPOSITION OF TRUSTS

Each Trust initially consists of delivery statements relating to contracts
to purchase Securities (or of such Securities) as are listed under "Schedule
of Investments" in Part A of this Prospectus and, thereafter, of such
Securities as may continue to be held from time to time (including certain
securities deposited in the Trust to create additional Units or in
substitution for Securities not delivered to a Trust.) To assist the Sponsor
in selecting Securities for the Trusts, the Sponsor may use its own resources
to pay outside research service providers.

Limited Replacement of Certain Securities. Neither the Sponsor nor the
Trustee shall be liable in any way for any default, failure or defect in any
Security. In the event of a failure to deliver any Security that has been
purchased for a Trust under a contract, including those Securities purchased
on a when, as and if issued basis ("Failed Securities"), the Sponsor is
authorized under the Indenture to direct the Trustee to acquire other
specified Securities ("Replacement Securities") to make up the original corpus
of the Trust within 20 days after delivery of notice of the failed contract
and the cost to the Trust may not exceed the amount of funds reserved for the
purchase of the Failed Securities.

If the right of limited substitution described in the preceding paragraph is
not utilized to acquire Replacement Securities in the event of a failed
contract, the Sponsor will refund the sales charge attributable to such Failed
Securities to all Unitholders of the Trust and the Trustee will distribute the
principal attributable to such Failed Securities not more than 120 days after
the date on which the Trustee received a notice from the Sponsor that a
Replacement Security would not be deposited in the Trust. In addition,
Unitholders should be aware that, at the time of receipt of such principal,
they may not be able to reinvest such proceeds in other securities with
equivalent growth potential at a comparable price.

The Indenture also authorizes the Sponsor to increase the size of the Trust
and the number of Units thereof by the deposit of additional Securities in the
Trust or cash (including a letter of credit) with instructions to purchase
additional Securities in the Trust and the issuance of a corresponding number
of additional Units. If the Sponsor deposits cash, however, existing and new
investors may experience a dilution of their investment and a reduction in
their anticipated income because of fluctuations in the prices of the
Securities between the time of the cash deposit and the purchase of the
Securities and because the Trust will pay the associated brokerage fees.

Sale of Securities. Certain of the Securities may from time to time under
certain circumstances be sold. The proceeds from such events will be used to
pay for Units redeemed or distributed to Unitholders and not reinvested;
accordingly, no assurance can be given that a Trust will retain for any length
of time its present size and composition.

Litigation. Except as provided in Part A of the Prospectus, to the best
knowledge of the Sponsor, there is no litigation pending as of the Initial
Date of Deposit in respect of any Securities which might reasonably be
expected to have a material adverse effect on any of the Trusts. It is
possible that after the Initial Date of Deposit, litigation may be initiated
with respect to Securities in any Trust. The Sponsor is unable to predict
whether any such litigation may be instituted, or if instituted, whether such
litigation might have a material adverse effect on the Trusts.

RISK FACTORS

An investment in Units should be made with an understanding of the risks
which an investment in common stocks entails, including the risk that the
financial condition of the issuers of the Securities or

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the general conditions of the common stock market may worsen and the value of
the Securities and therefore the value of the Units may decline. Common stocks
are especially susceptible to general stock market movements and to volatile
increases and decreases of value as market confidence in and perceptions of
the issuers change. These perceptions are based on unpredictable factors
including expectations regarding government, economic, monetary and fiscal
policies, inflation and interest rates, economic expansion or contraction, and
global or regional political, economic or banking crises. Shareholders of
common stocks have rights to receive payments from the issuers of those common
stocks that are generally subordinate to those of creditors of, or holders of
debt obligations or preferred stocks of, such issuers. Shareholders of common
stocks of the type held by the Trust(s) have a right to receive dividends only
when and if, and in the amounts, declared by the issuer's board of directors
and have a right to participate in amounts available for distribution by the
issuer only after all other claims on the issuer have been paid or provided
for. Common stocks do not represent an obligation of the issuer and,
therefore, do not offer any assurance of income or provide the same degree of
protection of capital as do debt securities. The issuance of additional debt
securities or preferred stock will create prior claims for payment of
principal, interest and dividends which could adversely affect the ability and
inclination of the issuer to declare or pay dividends on its common stock or
the rights of holders of common stock with respect to assets of the issuer
upon liquidation or bankruptcy. The value of common stocks is subject to
market fluctuations for as long as the common stocks remain outstanding, and
thus the value of the Securities in a Trust may be expected to fluctuate over
the life of a Trust to values higher or lower than those prevailing on the
Initial Date of Deposit.

Holders of common stock incur more risk than holders of preferred stocks and
debt obligations because common stockholders, as owners of the entity, have
generally inferior rights to receive payments from the issuer in comparison
with the rights of creditors of, or holders of debt obligations or preferred
stocks issued by, the issuer. Cumulative preferred stock dividends must be
paid before common stock dividends and any cumulative preferred stock dividend
omitted is added to future dividends payable to the holders of cumulative
preferred stock. Preferred stockholders are also generally entitled to rights
on liquidation which are senior to those of common stockholders.

Unitholders will be unable to dispose of any of the Securities in a Trust
and will not be able to vote the Securities. As the holder of the Securities,
the Trustee will have the right to vote all of the voting stocks in a Trust
and will vote such stocks in accordance with the instructions of the Sponsor.

The value of the Securities will fluctuate over the life of a Trust and may
be more or less than the value at the time they were deposited in such Trust.
The Securities may appreciate or depreciate in value (or pay dividends)
depending on the full range of economic and market influences affecting these
Securities, including the impact of the Sponsor's purchase and sale of
Securities (especially during the primary offering period of Units of a Trust
and during the Special Redemption and Liquidation Period) and other factors.

Whether or not the Securities are listed on a securities exchange, the
principal trading market for the Securities may be in the over-the-counter
market. As a result, the existence of a liquid trading market for the
Securities may depend on whether dealers will make a market in the Securities.
There can be no assurance that a market will be made for any of the
Securities, that any market for the Securities will be maintained or of the
liquidity of the Securities in any markets made. In addition, the Trust may be
restricted under the Investment Company Act of 1940 from selling Securities to
the Sponsor. The price at which the Securities may be sold to meet redemptions
and the value of a Trust will be adversely affected if trading markets for the
Securities are limited or absent. There can be no assurance that a Trust or
successive trusts that employ the same or a similar investment strategy will
achieve their investment objectives.

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The following Trusts consist of portfolios that are concentrated in
particular industry sectors. Accordingly, these Trusts are exposed to the
additional risks described below.

Communications Sector Portfolio. An investment in Units of the
Communications Sector Portfolio should be made with an understanding of the
problems and risks inherent in the communications sector in general.

The market for high-technology communications products and services is
characterized by rapidly changing technology, intense competition, rapid
product and service obsolescence, cyclical market patterns, evolving industry
standards and frequent new product introductions. The success of the issuers
of the Securities depends in substantial part on the timely and successful
introduction of new products and services. An unexpected change in one or more
of the technologies affecting an issuer's products or in the market for
products based on a particular technology could have a material adverse affect
on an issuer's operating results. Furthermore, there can be no assurance that
the issuers of the Securities will be able to respond in a timely manner to
compete in the rapidly developing marketplace.

Certain of the companies represented in the Trust are engaged in fierce
competition for a share of the market of their products. Due to the
competitive pressures, the stocks of these companies are subject to rapid
price volatility. Also, the communications industry is generally subject to
governmental regulation. However, as market forces develop, the government is
expected to continue to deregulate the communications industry, further
promoting vigorous economic competition and resulting in the rapid development
of new communications technologies.

Many communications companies rely on a combination of patents, copyrights,
trademarks and trade secret laws to establish and protect their proprietary
rights in their products and technologies. There can be no assurance that the
steps taken by the issuers of the Securities to protect their proprietary
rights will be adequate to prevent misappropriation of their technology or
that competitors will not independently develop technologies that are
substantially equivalent or superior to such issuers' technology. The above
factors could adversely affect the value of the Trust's Units.

Consumer Electronics Sector Portfolio. An investment in Units of the
Consumer Electronics Sector Portfolio should be made with an understanding of
the problems and risks inherent in the consumer electronics industry in
general. These include the cyclicality of revenues and earnings, intense
competition, rapid product and service obsolescence, changing consumer
demands, rapidly changing technology, frequent new product introductions,
regulatory restrictions, product liability litigation and other litigation
resulting from accidents, extensive competition (including that of low-cost
foreign companies), unfunded pension fund liabilities and employee and retiree
benefit costs, and financial deterioration resulting from leveraged buyouts,
takeovers or acquisitions. In general, expenditures on consumer electronics
will be affected by the economic health of consumers. A weak economy with its
consequent effect on consumer spending would have an adverse effect on the
industry.

The success of the issuers of the Securities depends in substantial part on
the timely and successful introduction of new products. An unexpected change
in one or more of the technologies affecting an issuer's products or in the
market for products based on a particular technology could have a material
adverse effect on an issuer's operating results. Furthermore, there can be no
assurance that the issuers of the Securities will be able to respond in a
timely manner to compete in the rapidly developing marketplace.

Other factors of particular relevance to the profitability of the industry
are the effects of increasing environmental regulation on packaging and on
waste disposal, the continuing need to conform with foreign regulations
governing packaging and the environment, the outcome of trade negotiations and
the effect on foreign subsidies and tariffs, foreign exchange rates, the price
of oil and its effect on energy costs, inventory cutbacks by retailers,
transportation and distribution costs, the effect of demographics on consumer
demand, the availability and cost of raw materials and the ongoing need to
improve productivity.

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Many consumer electronics companies rely on a combination of patents,
copyrights, trademarks and trade secret laws to establish and protect their
proprietary rights in their products and technologies. There can be no
assurance that the steps taken by the issuers of the Securities to protect
their proprietary rights will be adequate to prevent misappropriation of their
technology or that competitors will not independently develop technologies that
are substantially equivalent or superior to such issuers' technology. The above
factors could adversely affect the value of the Trust's Units.

Energy Sector Portfolio. An investment in Units of the Energy Sector
Portfolio should be made with an understanding of the problems and risks such
an investment may entail.

The Energy Sector Growth Portfolio invests in Securities of companies
involved in the energy industry. The business activities of companies held in
the Trust may include: production, generation, transmission, marketing,
control, or measurement of energy or energy fuels; providing component parts or
services to companies engaged in the above activities; energy research or
experimentation; and environmental activities related to the solution of energy
problems, such as energy conservation and pollution control. Companies
participating in new activities resulting from technological advances or
research discoveries in the energy field were also considered for the Trust.

The securities of companies in the energy field are subject to changes in
value and dividend yield which depend, to a large extent, on the price and
supply of energy fuels. Swift price and supply fluctuations may be caused by
events relating to international politics, energy conservation, the success of
exploration projects, and tax and other regulatory policies of various
governments. As a result of the foregoing, the Securities in the Trust may be
subject to rapid price volatility. The Sponsor is unable to predict what impact
the foregoing factors will have on the Securities during the life of the Trust.

According to the U.S. Department of Commerce, the factors which will most
likely shape the energy industry include the price and availability of oil from
the Middle East, changes in United States environmental policies and the
continued decline in U.S. production of crude oil. Possible effects of these
factors may be increased U.S. and world dependence on oil from the Organization
of Petroleum Exporting Countries ("OPEC") and highly uncertain and potentially
more volatile oil prices. Factors which the Sponsor believes may increase the
profitability of oil and petroleum operations include increasing demand for oil
and petroleum products as a result of the continued increases in annual miles
driven and the improvement in refinery operating margins caused by increases in
average domestic refinery utilization rates. The existence of surplus crude oil
production capacity and the willingness to adjust production levels are the two
principal requirements for stable crude oil markets. Without excess capacity,
supply disruptions in some countries cannot be compensated for by others.
Surplus capacity in Saudi Arabia and a few other countries and the utilization
of that capacity prevented, during the Persian Gulf crisis, and continues to
prevent, severe market disruption. Although unused capacity contributed to
market stability in 1990 and 1991, it ordinarily creates pressure to
overproduce and contributes to market uncertainty. The restoration of a large
portion of Kuwait and Iraq's production and export capacity could lead to such
a development in the absence of substantial growth in world oil demand.
Formerly, OPEC members attempted to exercise control over production levels in
each country through a system of mandatory production quotas. Because of the
1990-1991 crisis in the Middle East, the mandatory system has since been
replaced with a voluntary system. Production under the new system has had to be
curtailed on at least one occasion as a result of weak prices, even in the
absence of supplies from Kuwait and Iraq. The pressure to deviate from
mandatory quotas, if they are reimposed, is likely to be substantial and could
lead to a weakening of prices. In the longer term, additional capacity and
production will be required to accommodate the expected large increases in
world oil demand and to compensate for expected sharp drops in U.S. crude oil
production and exports from the Soviet Union. Only a few OPEC countries,
particularly Saudi Arabia, have the petroleum reserves that will allow the
required increase in production capacity to be attained. Given the large-scale
financing that is required, the prospect that such expansion will occur soon
enough to meet the increased demand is uncertain.

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Declining U.S. crude oil production will likely lead to increased dependence
on OPEC oil, putting refiners at risk of continued and unpredictable supply
disruptions. Increasing sensitivity to environmental concerns will also pose
serious challenges to the industry over the coming decade. Refiners are likely
to be required to make heavy capital investments and make major production
adjustments in order to comply with increasingly stringent environmental
legislation, such as the 1990 amendments to the Clean Air Act. If the cost of
these changes is substantial enough to cut deeply into profits, smaller
refiners may be forced out of the industry entirely. Moreover, lower consumer
demand due to increases in energy efficiency and conservation, gasoline
reformulations that call for less crude oil, warmer winters or a general
slowdown in economic growth in this country and abroad could negatively affect
the price of oil and the profitability of oil companies. No assurance can be
given that the demand for or prices of oil will increase or that any increases
will not be marked by great volatility. Some oil companies may incur large
cleanup and litigation costs relating to oil spills and other environmental
damage.

Financial Services Sector Portfolio. An investment in Units of the Financial
Services Sector Portfolio, should be made with an understanding of the problems
and risks inherent in the bank and financial services sector in general.

Banks, thrifts and their holding companies are especially subject to the
adverse effects of economic recession, volatile interest rates, portfolio
concentrations in geographic markets and in commercial and residential real
estate loans, and competition from new entrants in their fields of business.
Banks and thrifts are highly dependent on net interest margin. Recently, bank
profits have come under pressure as net interest margins have contracted, but
volume gains have been strong in both commercial and consumer products. There
is no certainty that such conditions will continue. Bank and thrift
institutions had received significant consumer mortgage fee income as a result
of activity in mortgage and refinance markets. As initial home purchasing and
refinancing activity subsided, this income diminished. Economic conditions in
the real estate markets, which have been weak in the past, can have a
substantial effect upon banks and thrifts and their holding companies are
subject to extensive federal regulation and, when such institutions are state-
chartered, to state regulation as well. Such regulations impose strict capital
requirements and limitations on the nature and extent of business activities
that banks and thrifts may pursue. Furthermore, bank regulators have a wide
range of discretion in connection with their supervisory and enforcement
authority and may substantially restrict the permissible activities of a
particular institution if deemed to pose significant risks to the soundness of
such institution or the safety of the federal deposit insurance fund.
Regulatory actions, such as increases in the minimum capital requirements
applicable to banks and thrifts and increases in deposit insurance premiums
required to be paid by banks and thrifts to the Federal Deposit Insurance
Corporation ("FDIC"), can negatively impact earnings and the ability of a
company to pay dividends. Neither federal insurance of deposits nor
governmental regulations, however, insures the solvency or profitability of
banks or their holding companies, or insures against any risk of investment in
the securities issued by such institutions.

The statutory requirements applicable to and regulatory supervision of banks,
thrifts and their holding companies have increased significantly and have
undergone substantial change in recent years. To a great extent, these changes
are embodied in the Financial Institutions Reform, Recovery and Enforcement
Act; enacted in August 1989, the Federal Deposit Insurance Corporation
Improvement Act of 1991, the Resolution Trust Corporation Refinancing,
Restructuring, and Improvement Act of 1991 and the regulations promulgated
under these laws. Many of the regulations promulgated pursuant to these laws
have only recently been finalized and their impact on the business, financial
condition and prospects of Securities in the Trust's portfolio cannot be
predicted with certainty. Periodic efforts by recent Administrations to
introduce legislation broadening the ability of banks to compete with new
products have not been successful, but if enacted could lead to more failures
as a result of increased competition and added risks. Failure to enact such
legislation, on the other hand, may lead to declining earnings and an inability
to compete with unregulated financial institutions. Efforts to expand the
ability of federal thrifts to branch on an interstate basis have been initially
successful through promulgation of regulations, and legislation to liberalize
interstate banking has recently been signed into law. Under the

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legislation, banks will be able to purchase or establish subsidiary banks in
any state, one year after the legislation's enactment. Starting in mid-1997,
banks are allowed to turn existing banks into branches. Consolidation is likely
to continue. The Securities and Exchange Commission and the Financial
Accounting Standards Board require the expanded use of market value accounting
by banks and have imposed rules requiring market accounting for investment
securities held in trading accounts or available for sale. Adoption of
additional such rules may result in increased volatility in the reported health
of the industry, and mandated regulatory intervention to correct such problems.
Additional legislative and regulatory changes may be forthcoming. For example,
the bank regulatory authorities have proposed substantial changes to the
Community Reinvestment Act and fair lending laws, rules and regulations, and
there can be no certainty as to the effect, if any, that such changes would
have on the Securities in the Trust's portfolio. In addition, from time to time
the deposit insurance system is reviewed by Congress and federal regulators,
and proposed reforms of that system could, among other things, further restrict
the ways in which deposited moneys can be used by banks or reduce the dollar
amount or number of deposits insured for any depositor. Such reforms could
reduce profitability as investment opportunities available to bank institutions
become more limited and as consumers look for savings vehicles other than bank
deposits. Banks and thrifts face significant competition from other financial
institutions such as mutual funds, credit unions, mortgage banking companies
and insurance companies, and increased competition may result from legislative
broadening of regional and national interstate banking powers as has been
recently enacted. Among other benefits, the legislation allows banks and bank
holding companies to acquire across previously prohibited state lines and to
consolidate their various bank subsidiaries into one unit. The Sponsor makes no
prediction as to what, if any, manner of bank and thrift regulatory actions
might ultimately be adopted or what ultimate effect such actions might have on
the Trust's portfolio.

The Federal Bank Holding Company Act of 1956 generally prohibits a bank
holding company from (1) acquiring, directly or indirectly, more than 5% of the
outstanding shares of any class of voting securities of a bank or bank holding
company, (2) acquiring control of a bank or another bank holding company, (3)
acquiring all or substantially all the assets of a bank, or (4) merging or
consolidating with another bank holding company, without first obtaining
Federal Reserve Board ("FRB") approval. In considering an application with
respect to any such transaction, the FRB is required to consider a variety of
factors, including the potential anti-competitive effects of the transaction,
the financial condition and future prospects of the combining and resulting
institutions, the managerial resources of the resulting institution, the
convenience and needs of the communities the combined organization would serve,
the record of performance of each combining organization under the Community
Reinvestment Act and the Equal Credit Opportunity Act, and the prospective
availability to the FRB of information appropriate to determine ongoing
regulatory compliance with applicable banking laws. In addition, the federal
Change In Bank Control Act and various state laws impose limitations on the
ability of one or more individuals or other entities to acquire control of
banks or bank holding companies.

The FRB has issued a policy statement on the payment of cash dividends by
bank holding companies. In the policy statement, the FRB expressed its view
that a bank holding company experiencing earnings weaknesses should not pay
cash dividends which exceed its net income or which could only be funded in
ways that would weaken its financial health, such as by borrowing. The FRB also
may impose limitations on the payment of dividends as a condition to its
approval of certain applications, including applications for approval of
mergers and acquisitions. The Sponsor makes no prediction as to the effect, if
any, such laws will have on the Securities or whether such approvals, if
necessary, will be obtained.

Internet Sector Portfolio. An investment in Units of the Internet Sector
Portfolio should be made with an understanding of the problems and risks
inherent in the technology sectors in general.

Technology companies generally include companies involved in the development,
design, manufacture and sale of computers, computer-related equipment, computer
networks, communications

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systems, telecommunications products, electronic products and other related
products, systems and services. The market for these products, especially
those specifically related to the Internet, is characterized by rapidly
changing technology, rapid product and service obsolescence, cyclical market
patterns, intense competition, evolving industry standards and frequent new
product introductions. The success of the issuers of the Securities depends in
substantial part on the timely and successful introduction of new products. An
unexpected change in one or more of the technologies affecting an issuer's
products or in the market for products based on a particular technology could
have a material adverse effect on an issuer's operating results. Furthermore,
there can be no assurance that the issuers of the Securities will be able to
respond in a timely manner to compete in the rapidly developing marketplace.

Based on the trading history of technology stocks, factors such as the
announcement of new products, the development of new technologies or the
general condition of the industry have caused and are likely to cause the
market price of high-technology common stocks to fluctuate substantially. In
addition, technology company stocks have experienced extreme price and volume
fluctuations that often have been unrelated to the operating performance of
such companies. This market volatility may adversely affect the market price
of the Securities and therefore the ability of a Unitholder to redeem Units at
a price equal to or greater than the original price paid for such Units.

Some key components of certain products of technology issuers are currently
available only from single sources. There can be no assurance that in the
future suppliers will be able to meet the demand for components in a timely
and cost effective manner. Accordingly, an issuer's operating results and
customer relationships could be adversely affected by either an increase in
price for, or an interruption or reduction in supply of, any key components.
Additionally, many technology issuers are characterized by a highly
concentrated customer base consisting of a limited number of large customers
who may require product vendors to comply with rigorous industry standards.
Any failure to comply with such standards may result in a significant loss or
reduction of sales. Because many products and technologies of technology
companies are incorporated into other related products, such companies are
often highly dependent on the performance of the personal computer,
electronics and telecommunications industries. There can be no assurance that
these customers will place additional orders, or that an issuer of Securities
will obtain orders of similar magnitude as past orders from other customers.
Similarly, the success of certain technology companies is tied to a relatively
small concentration of products or technologies. Accordingly, a decline in
demand of such products, technologies or from such customers could have a
material adverse impact on issuers of the Securities.

Many technology companies rely on a combination of patents, copyrights,
trademarks and trade secret laws to establish and protect their proprietary
rights in their products and technologies. There can be no assurance that the
steps taken by the issuers of the Securities to protect their proprietary
rights will be adequate to prevent misappropriation of their technology or
that competitors will not independently develop technologies that are
substantially equivalent or superior to such issuers' technology. In addition,
due to the increasing public use of the Internet, it is possible that other
laws and regulations may be adopted to address issues such as privacy,
pricing, characteristics, and quality of Internet products and services. The
adoption of any such laws could have a material adverse impact on the
Securities in the Portfolio. The above factors could adversely affect the
value of the Trust's Units.

Pharmaceuticals Sector Portfolio. An investment in Units of the
Pharmaceuticals Sector Portfolio should be made with an understanding of the
characteristics of the pharmaceutical and medical technology industries and
the risks which such investment may entail.

Pharmaceutical companies are companies involved in drug development and
production services. Such companies have potential risks unique to their
sector of the healthcare field. Such companies are subject to governmental
regulation of their products and services, a factor which could have a
significant and possibly unfavorable effect on the price and availability of
such products or services. Furthermore,

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such companies face the risk of increasing competition from generic drug sales,
the termination of their patent protection for drug products and the risk that
technological advances will render their products or services obsolete. The
research and development costs of bringing a drug to market are substantial and
include lengthy governmental review processes, with no guarantee that the
product will ever come to market. Many of these companies may have losses and
not offer certain products for several years. Such companies may also have
persistent losses during a new product's transition from development to
production, and revenue patterns may be erratic.

As the population of the United States ages, the companies involved in the
pharmaceutical field will continue to search for and develop new drugs through
advanced technologies and diagnostics. On a worldwide basis, such companies are
involved in the development and distribution of drugs and vaccines. These
activities may make the pharmaceutical sector very attractive for investors
seeking the potential for growth in their investment portfolio. However, there
are no assurances that the Trust's objectives will be met.

Legislative proposals concerning healthcare are considered from time to time.
These proposals span a wide range of topics, including cost and price controls
(which might include a freeze on the prices of prescription drugs), national
health insurance, incentives for competition in the provision of healthcare
services, tax incentives and penalties related to healthcare insurance premiums
and promotion of pre-paid healthcare plans. The Sponsor is unable to predict
the effect of any of these proposals, if enacted, on the issuers of Securities
in the Trust.

Precious Metals Sector Portfolio. An investment in Units of the Trust should
be made with an understanding of the problems and risks inherent in the
precious metals industry in general.

The Trust includes securities which are issued by companies engaged in the
exploration for and development of gold and other precious metals properties
and mining and processing of gold ore and other precious metals. Mining
operations and exploration activities are subject to extensive federal, state
and local laws and regulations governing exploration, development, production,
exports, taxes, labor standards, occupational health, waste disposal,
protection and remediation of the environment, reclamation, mine safety, toxic
substances and other matters. Compliance with such laws and regulations may
increase the costs of planning, designing, drilling, developing, constructing,
operating and closing the mines and other facilities of certain companies. It
is possible that the costs and delays associated with compliance with such laws
and regulations could become such that certain companies would not proceed with
the development or operation of a mine and could have a significant adverse
effect on certain of the issuers of Securities. Mining and exploration
companies must also seek governmental permits for expansion and advanced
exploration activities. Obtaining the necessary government permits is a complex
and time-consuming process involving numerous federal, state and local
agencies. The failure to obtain certain permits could have a material adverse
effect on an issuer's business, operations and prospects. Furthermore, the laws
and regulations of foreign countries may differ significantly from U.S. laws
governing mining operations in the United States.

In addition, profitability of precious metals companies is significantly
affected by changes in the market prices of precious metals. Prices of precious
metals can fluctuate widely and are affected by numerous industry factors, such
as demand for precious metals, forward selling by producers, central bank sales
and purchases of gold, and production and cost levels in major metals-producing
regions. Gold, in particular, has been subject to substantial price
fluctuations over short periods of time and may be affected by unpredictable
international monetary and other governmental policies, such as currency
devaluations or revaluations; economic and social conditions within a country;
trade imbalances; or trade or currency restrictions between countries. Since
much of the world's known gold reserves are located in South Africa, political
and social conditions there may influence the price of gold and the share
values of precious metals mining companies located elsewhere. Investors should
understand the special

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considerations and risks related to such an investment emphasis, and,
accordingly, the potential effect on the value of the Trust.

Although many companies have hedging programs in place to reduce the risk
associated with precious metals price volatility, there is no assurance that
an issuer's hedging strategies will be successful. Furthermore, exploration
for all minerals, as well as gold and other precious metals, is highly
speculative in nature, involves many risks and frequently is unsuccessful.
There can be no assurance that any company's exploration efforts will result
in the discovery of precious metals or that any precious metals discovered
will result in an increase of any company's reserves. In the event that new
reserves are not developed, an issuer may not be able to sustain its current
level of production which could adversely affect such Securities in the
Trust's portfolio.

Because a substantial portion of the operations of companies involved in
exploring, mining, processing, or dealing in precious metals are frequently
located outside of the United States, and certain of the Securities in the
Trust are issued by foreign corporations, an investment in the Trust involves
some investment risks that are different in some respects from an investment
in a trust that invests entirely in securities of domestic issuers. Those
investment risks include future political and governmental restrictions which
might adversely affect the payment or receipt of payment of dividends on the
relevant Securities, currency exchange rate fluctuations, exchange control
policies and the limited liquidity and small market capitalization of such
foreign countries' securities markets. In addition, for foreign issuers that
are not subject to the reporting requirements of the Securities Exchange Act
of 1934, there may be less publicly available information than is available
from a domestic issuer. Also, foreign issuers are not necessarily subject to
uniform accounting, auditing and financial reporting standards, practices and
requirements comparable to those applicable to domestic issuers. However, due
to the nature of the issuers of the Securities included in the Trust, the
Sponsor believes that adequate information will be available to allow the
Evaluator to provide portfolio surveillance. The above factors could adversely
affect the value of the Trust's Units.

Retail Sector Portfolio. An investment in Units of the Retail Sector
Portfolio should be made with an understanding of the problems and risks
inherent in the retail industry in general. The profitability of companies
engaged in the retail industry will be affected by various factors including
the general state of the economy, intense competition and consumer spending
trends. In the recent past, there have been major changes in the retail
environment due to the declaration of bankruptcy by some of the major
corporations involved in the retail industry, particularly the department
store segment. The continued viability of the retail industry will depend on
the industry's ability to adapt and to compete in changing economy and social
conditions, to attract and retain capable management and to finance expansion.
Weakness in the banking or real estate industry, a recessionary economic
climate with the consequent slowdown in employment growth, less favorable
trends in unemployment or a marked deceleration in real disposable personal
income growth could result in significant pressure on both consumer wealth and
consumer confidence, adversely affecting consumer spending habits.

In addition, the competitiveness of the retail industry will require large
capital outlays for investment in the installation of automated checkout
equipment to control inventory, to track the sale of individual items and to
gauge the success of sales campaigns. Increasing employee and retiree benefit
costs may also have an adverse effect on the industry. In many sectors of the
retail industry, competition may be fierce due to market saturation,
converging consumer tastes and other factors. Because of these factors and the
recent increase in trade opportunities with other countries, American
retailers are now entering global markets which entail added risks such as
sudden weakening of foreign economies, difficulty in adapting to local
conditions and constraints and added research costs. The above factors could
adversely affect the value of the Trust's Units.

Semiconductor Sector Portfolio. An investment in Units of the Semiconductor
Sector Portfolio should be made with an understanding of the problems and
risks inherent in the semiconductor industry in general.

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<PAGE>

Semiconductor companies generally include companies involved in the
development, design, manufacture and sale of semiconductor products. The market
for these products is characterized by rapidly changing technology, rapid
product obsolescence, cyclical market patterns, evolving industry standards and
frequent new product introductions. The success of the issuers of the
Securities depends in substantial part on the timely and successful
introduction of new products. An unexpected change in one or more of the
technologies affecting an issuer's products or in the market for products based
on a particular technology could have a material adverse affect on an issuer's
operating results. Furthermore, there can be no assurance that the issuers of
the Securities will be able to respond timely to compete in the rapidly
developing marketplace.

Based on trading history of common stock, factors such as announcements of
new products or development of new technologies and general conditions of the
industry have caused and are likely to cause the market price of semiconductor
common stocks to fluctuate substantially. In addition, semiconductor stocks
have experienced extreme price and volume fluctuations that often have been
unrelated to the operating performance of such companies. This market
volatility may adversely affect the market price of the Securities and
therefore the ability of a Unitholder to redeem Units at a price equal to or
greater than the original price paid for such Units.

Some key components of certain products of semiconductor issuers are
currently available only from single sources. There can be no assurance that in
the future suppliers will be able to meet the demand for components in a timely
and cost effective manner. Accordingly, an issuer's operating results and
customer relationships could be adversely affected by either an increase in
price for, or an interruption or reduction in supply of any key components.
Additionally, many semiconductor issuers are characterized by a highly
concentrated customer base consisting of a limited number of large customers
who may require product vendors to comply with rigorous industry standards. Any
failure to comply with such standards may result in a significant loss or
reduction of sales. Because many products and technologies of semiconductor
companies are incorporated into other related products, such companies are
often highly dependent on the performance of the personal computer, electronics
and telecommunications industries. There can be no assurance that these
customers will place additional orders, or that an issuer of Securities will
obtain orders of similar magnitude as past orders from other customers.
Similarly, the success of certain semiconductor companies is tied to a
relatively small concentration of products or technologies. Accordingly, a
decline in demand of such products, technologies or from such customers could
have a material adverse impact on issuers of the Securities.

Technology Sector Portfolio. An investment in Units of the Technology Sector
Portfolio should be made with an understanding of the characteristics of the
technology industry and the risks which such an investment may entail.

Technology companies generally include companies involved in the development,
design, manufacture and sale of computers, computer-related equipment, computer
networks, communications systems, telecommunications products, electronic
products and other related products, systems and services. The market for these
products, especially those specifically related to the Internet, is
characterized by rapidly changing technology, rapid product obsolescence,
cyclical market patterns, evolving industry standards and frequent new product
introductions. The success of the issuers of the Securities depends in
substantial part on the timely and successful introduction of new products. An
unexpected change in one or more of the technologies affecting an issuer's
products or in the market

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<PAGE>

for products based on a particular technology could have a material adverse
affect on an issuer's operating results. Furthermore, there can be no
assurance that the issuers of the Securities will be able to respond in a
timely manner to compete in the rapidly developing marketplace.

Based on trading history of common stock, factors such as announcements of
new products or development of new technologies and general conditions of the
industry have caused and are likely to cause the market price of high-
technology common stocks to fluctuate substantially. In addition, technology
company stocks have experienced extreme price and volume fluctuations that
often have been unrelated to the operating performance of such companies. This
market volatility may adversely affect the market price of the Securities and
therefore the ability of a Unitholder to redeem Units at a price equal to or
greater than the original price paid for such Units.

Many technology companies rely on a combination of patents, copyrights,
trademarks and trade secret laws to establish and protect their proprietary
rights in their products and technologies. There can be no assurance that the
steps taken by the issuers of the Securities to protect their proprietary
rights will be adequate to prevent misappropriation of their technology or
that competitors will not independently develop technologies that are
substantially equivalent or superior to such issuers' technology. In addition,
due to the increasing public use of the Internet, it is possible that other
laws and regulations may be adopted to address issues such as privacy,
pricing, characteristics, and quality of Internet products and services. For
example, recent proposals would prohibit the distribution of obscene,
lascivious or indecent communications on the Internet. The adoption of any
such laws could have a material adverse impact on the Securities in the Trust.

Year 2000 Problem. Like other investment companies, financial and business
organizations and individuals around the world a Trust could be adversely
affected if the computer systems used by the Sponsor or Trustee or other
service providers to such Trust do not properly process and calculate date-
related information and data from and after January 1, 2000. This is commonly
known as the "Year 2000 Problem." The Sponsor and Trustee are taking steps
that they believe are reasonably designed to address the Year 2000 Problem
with respect to computer systems that they use and to obtain reasonable
assurances that comparable steps are being taken by a Trust's other service
providers. At this time, however, there can be no assurance that these steps
will be sufficient to avoid any adverse impact to a Trust.

The Year 2000 Problem is expected to impact corporations and other parties,
which may include issuers of the Securities contained in a Trust, to varying
degrees based upon various factors, including, but not limited to, their
industry sector and degree of technological sophistication. The Sponsor is
unable to predict what impact, if any, the Year 2000 Problem will have on
issuers of the Securities contained in a Trust.

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Legislation. At any time after the Initial Date of Deposit, legislation may
be enacted, with respect to the Securities in a Trust or the issuers of the
Securities. Changing approaches to regulation, particularly with respect to
the environment or with respect to the petroleum or tobacco industry, may have
a negative impact on certain companies represented in a Trust. There can be no
assurance that future legislation, regulation or deregulation will not have a
material adverse effect on a Trust or will not impair the ability of the
issuers of the Securities to achieve their business goals.

PUBLIC OFFERING PRICE

The Public Offering Price of the Units is based on the aggregate underlying
value of the Securities in the Trust (generally determined by the closing sale
prices of listed Securities and the ask prices of over-the-counter traded
Securities), plus or minus cash, if any, in the Income and Capital Accounts of
the Trust, plus an initial sales charge equal to the difference between the
maximum sales charge (as set forth in Part A of the Prospectus) per Unit and
the maximum remaining deferred sales charge (as set forth in Part A of the
Prospectus) and is rounded to the nearest cent. In addition, a portion of the
Public Offering Price during the initial offering period also consists of
Securities in an amount sufficient to pay for all or a portion of the costs
incurred in establishing a Trust, including costs of preparing the
registration statement, the trust indenture and other closing documents,
registering Units with the Securities and Exchange Commission and states, the
initial audit of each Trust portfolio, the initial evaluation, legal fees, the
initial fees and expenses of the Trustee and any other non-material out-of-
pocket expenses. The organizational and offering costs will be deducted from
the assets of the Trust as of the close of the initial offering period. See
"Trust Summary and Financial Highlights" in Part A of the Prospectus.
Commencing on those dates set forth under "Investing in the Trust--Sales
Charges" in Part A of this Prospectus, a deferred sales charge in an amount
described in Part A of the Prospectus will be assessed per Unit per applicable
month. If so provided in Part A of the Prospectus, Unitholders who elect to
roll their Units into a new series of the Trust or a trust with a similar
investment strategy during the Interim Special Redemption and Liquidation
Period (as described under "Special Redemption, Liquidation and Investment in
a New Trust" in Part A of the Prospectus) or Unitholders who sell or redeem
their Units at or before the Second Year Commencement Date (as defined in Part
A of the Prospectus) will not be assessed a deferred sales charge for the
Second Year Deferred Period (as defined in Part A of the Prospectus) and
accordingly are only responsible for the remaining deferred sales charges for
the First Year Deferred Period (as defined in Part A of the Prospectus). The
deferred sales charges will be paid from funds in the Capital Account, if
sufficient, or from the periodic sale of Securities. A pro rata share of
accumulated dividends, if any, in the Income Account from the preceding Record
Date to, but not including, the settlement date (normally three business days
after purchase) is added to the Public Offering Price. The total maximum sales
charge assessed to Unitholders on a per Unit basis will be the amount set
forth in "Sales Charge" in Part A of the prospectus. See "UNIT VALUE AND
EVALUATION."

The sales charge applicable to quantity purchases is reduced on a graduated
scale as set forth in Part A of this Prospectus. For purposes of calculating
the applicable sales charge, purchasers who have indicated their intent to
purchase a specified amount of Units of any Nuveen unit investment trust in
the primary or secondary offering period by executing and delivering a letter
of intent to the Sponsor, which letter of intent must be in a form acceptable
to the Sponsor and shall have a maximum duration of thirteen months, will be
eligible to receive a reduced sales charge according to the graduated scale
provided in Part A of this Prospectus, based on the amount of intended
aggregate purchases (excluding purchases which are subject only to a deferred
sales charge) as expressed in the letter of intent. For purposes of letter of
intent calculations units of equity products are valued at $10 per unit. Due
to administrative limitations and in order to permit adequate tracking, the
only secondary market purchases that will be permitted to be applied toward
the intended specified amount and that will receive the corresponding reduced
sales charge are those Units that are acquired through or from the Sponsor. By
establishing a letter of intent, a Unitholder agrees that the first purchase
of Units following the execution

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<PAGE>

of such letter of intent will be at least 5% of the total amount of the
intended aggregate purchases expressed in such Unitholder's letter of intent.
Further, through the establishment of the letter of intent, such Unitholder
agrees that Units representing 5% of the total amount of the intended
purchases will be held in escrow by the Trustee pending completion of these
purchases. All distributions on Units held in escrow will be credited to such
Unitholder's account. If total purchases prior to the expiration of the letter
of intent period equal or exceed the amount specified in a Unitholder's letter
of intent, the Units held in escrow will be transferred to such Unitholder's
account. A Unitholder who purchases Units during the letter of intent period
in excess of the number of Units specified in a Unitholder's letter of intent,
the amount of which would cause the Unitholder to be eligible to receive an
additional sales charge reduction, will be allowed such additional sales
charge reduction on the purchase of Units which caused the Unitholder to reach
such new breakpoint level and on all additional purchases of Units during the
letter of intent period. If the total purchases are less than the amount
specified, the Unitholder involved must pay the Sponsor an amount equal to the
difference between the amounts paid for these purchases and the amounts which
would have been paid if the higher sales charge had been applied; the
Unitholder will, however, be entitled to any reduced sales charge qualified
for by reaching any lower breakpoint level. If such Unitholder does not pay
the additional amount within 20 days after written request by the Sponsor or
the Unitholder's securities representative, the Sponsor will instruct the
Trustee to redeem an appropriate number of the escrowed Units to meet the
required payment. By establishing a letter of intent, a Unitholder irrevocably
appoints the Sponsor as attorney to give instructions to redeem any or all of
such Unitholder's escrowed Units, with full power of substitution in the
premises. A Unitholder or his securities representative must notify the
Sponsor whenever such Unitholder makes a purchase of Units that he wishes to
be counted towards the intended amount.

For "secondary market" sales the Public Offering Price per Unit of each
Trust is determined by adding to the Trustee's determination of the aggregate
value of each Security in the Trust (generally determined by the closing sale
prices of listed Securities and the bid prices of over-the-counter traded
Securities) a sales charge as set forth in Part A of this Prospectus. See
"UNIT VALUE AND EVALUATION." The secondary market sales charge is reduced with
respect to quantity purchases in such amounts set forth in Part A of this
Prospectus.

Pursuant to the terms of the Indenture, the Trustee may terminate a Trust if
the net asset value of such Trust, as shown by any evaluation, is less than
20% of the total value of the Securities deposited in the Trust during the
primary offering period of the Trust.

At all times while Units are being offered for sale, the Sponsor will
appraise or cause to be appraised daily the value of the underlying Securities
in each Trust as of 4:00 p.m. eastern time, or as of any earlier closing time
on a day on which the New York Stock Exchange (the "Exchange") is scheduled in
advance to close at such earlier time and will adjust the Public Offering
Price of the Units commensurate with such appraisal ("Evaluation Time"). Such
Public Offering Price will be effective for all orders received by a dealer or
the Sponsor at or prior to 4:00 p.m. eastern time on each such day or as of
any earlier closing time on a day on which the Exchange is scheduled in
advance to close at such earlier time. Orders received after that time, or on
a day when the Exchange is closed for a scheduled holiday or weekend, will be
held until the next determination of price.

The graduated sales charges set forth in the table provided in Part A of
this Prospectus will apply on all applicable purchases of Nuveen investment
company securities on any one day by the same purchaser in the amounts stated,
and for this purpose purchases of this Trust will be aggregated with
concurrent purchases of any other Nuveen unit investment trust or of shares of
any open-end management investment company of which the Sponsor is principal
underwriter and with respect to the purchase of which a sales charge is
imposed. Purchases by or for the account of individuals and their spouses,
parents, children, grandchildren, grandparents, parents-in-law, sons- and
daughters-in-law, siblings, a sibling's spouse and a spouse's siblings
("immediate family members") will be aggregated to

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<PAGE>

determine the applicable sales charge. The graduated sales charges are also
applicable to a trustee or other fiduciary purchasing securities for a single
trust estate or single fiduciary account. Units may be purchased at the Public
Offering Price without a sales charge by officers or directors and by bona
fide, full-time employees of Nuveen, Nuveen Advisory Corp., Nuveen
Institutional Advisory Corp., The John Nuveen Company, The McGraw Hill
Companies, Inc. ("McGraw Hill") and Dow Jones & Company, Inc. ("Dow Jones")
including in each case these individuals and their immediate family members
(as defined above). (For individuals associated with McGraw Hill this
privilege is only available for purchases of Units of the Nuveen-Standard &
Poor's Quality Equity Portfolio (and for individuals associated with Dow Jones
this privilege is only available for purchases of Units of the Nuveen--The Dow
5SM Portfolio and the Nuveen--The Dow 10SM Portfolio.) However, if Part A of
the Prospectus provides for a sales charge payable during the Second Year
Deferred Period (as defined in Part A of the Prospectus) such Unitholders that
hold their Units after the Second Year Commencement Date (as defined in Part A
of the Prospectus) will be subject to the Second Year Deferred Sales Charge as
set forth in "Sales Charges" in Part A of the Prospectus. Unitholders of other
unit investment trusts having a similar strategy as the Trust may utilize
their termination proceeds to purchase Units of the Trust with the sales
charge applicable for "Rollovers" as provided in Part A of the Prospectus. The
dealer concession will be that applicable to "Rollovers".

Units may be purchased with the reduced sales charge provided for "Wrap
Accounts" under "Sales Charges" in Part A of the Prospectus by (1) investors
who purchase Units through registered investment advisers, certified financial
planners and registered broker-dealers who in each case either charge periodic
fees for financial planning, investment advisory or asset management services,
or provide such services in connection with the establishment of an investment
account for which a comprehensive "wrap fee" charge is imposed, (2) bank trust
departments investing funds over which they exercise exclusive discretionary
investment authority and that are held in a fiduciary, agency, custodial or
similar capacity, (3) any person who for at least 90 days, has been an
officer, director or bona fide employee of any firm offering Units for sale to
investors or their immediate family members (as defined above) and (4)
officers and directors of bank holding companies that make Units available
directly or through subsidiaries or bank affiliates (collectively, the
"Discounted Purchases"). Notwithstanding anything to the contrary in this
Prospectus, investors who purchase Units as described in this paragraph will
not receive sales charge reductions for quantity purchases.

During the initial offering period, unitholders of any Nuveen-sponsored unit
investment trust may utilize their redemption or termination proceeds to
purchase Units of a Trust with the sales charge applicable for "Rollovers" as
provided in Part A of the Prospectus.

Whether or not Units are being offered for sale, the Sponsor will determine
or cause to be determined the aggregate value of each Trust as of 4:00 p.m.
eastern time: (i) on each June 30 or December 31 (or, if such date is not a
business day, the last business day prior thereto), (ii) on any day on which a
Unit is tendered for redemption (or the next succeeding business day if the
date of tender is a non-business day) and (iii) at such other times as may be
necessary. For this purpose, a "business day" shall be any day on which the
Exchange is normally open. (See "UNIT VALUE AND EVALUATION.")

MARKET FOR UNITS

During the initial public offering period, the Sponsor intends to offer to
purchase Units of each Trust at a price based upon the pro rata share per Unit
of the aggregate underlying value of the Securities in such Trust (generally
determined by the closing sale prices of listed Securities and the ask prices
of over-the-counter traded Securities). Afterward, although it is not
obligated to do so, the Sponsor may maintain a secondary market for Units of
each Trust at its own expense and continuously offer to purchase Units of each
Trust at prices, subject to change at any time, which are based upon the
aggregate underlying value of the Securities in a Trust (generally determined
by the closing sale prices

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<PAGE>

of listed Securities and the bid prices of over-the-counter traded
Securities). During the initial offering period, the price at which the
Sponsor expects to repurchase Units (the "Sponsor's Repurchase Price")
includes estimated organizational and offering costs per Unit. After the
initial offering period, the Sponsor's Repurchase Price will not include such
estimated organizational and offering costs. See "Trust Summary and Financial
Highlights" in Part A of the Prospectus. Unitholders who wish to dispose of
their Units should inquire of the Trustee or their broker as to the current
Redemption Price. Units subject to a deferred sales charge which are sold or
tendered for redemption prior to such time as the entire deferred sales charge
on such Units has been collected will be assessed the amount of the remaining
deferred sales charge at the time of sale or redemption. However, if so
provided in Part A of the Prospectus, Unitholders who elect to roll their
Units into a new series of the Trust or a trust with a similar investment
strategy during the Interim Special Redemption and Liquidation Period or
Unitholders who sell or redeem their Units at or before the Second Year
Commencement Date will not be assessed a deferred sales charge for the Second
Year Deferred Period and accordingly are only responsible for the remaining
deferred sales charges for the First Year Deferred Period. (See "REDEMPTION.")
In connection with its secondary market making activities, the Sponsor may
from time to time enter into secondary market joint account agreements with
other brokers and dealers. Pursuant to such an agreement, the Sponsor will
generally purchase Units from the broker or dealer at the Redemption Price (as
defined in "REDEMPTION") and will place the Units into a joint account managed
by the Sponsor; sales from the account will be made in accordance with the
then current prospectus and the Sponsor and the broker or dealer will share
profits and losses in the joint account in accordance with the terms of their
joint account agreement.

In maintaining a market for the Units, the Sponsor will realize profits or
sustain losses in the amount of any difference between the price at which
Units are purchased and the price at which Units are resold or redeemed. The
secondary market Public Offering Price of Units may be greater or less than
the cost of such Units to the Sponsor.

Certificates, if any, for Units are delivered to the purchaser as promptly
after the date of settlement (three business days after purchase) as the
Trustee can complete the mechanics of registration, normally within 48 hours
after registration instructions are received. Purchasers of Units to whom
Certificates are issued will be unable to exercise any right of redemption
until they have received their Certificates, properly endorsed for transfer.
(See "REDEMPTION.")

EVALUATION OF SECURITIES AT THE INITIAL DATE OF DEPOSIT

The prices at which the Securities deposited in the Trusts would have been
offered to the public on the business day prior to the Initial Date of Deposit
were determined by the Trustee.

The amount by which the Trustee's determination of the aggregate value of
the Securities deposited in the Trusts was greater or less than the cost of
such Securities to the Sponsor was profit or loss to the Sponsor. (See Part A
of this Prospectus.) The Sponsor also may realize further profit or sustain
further loss as a result of fluctuations in the Public Offering Price of the
Units. Cash, if any, made available to the Sponsor prior to the settlement
date for a purchase of Units, or prior to the acquisition of all Portfolio
securities by a Trust, may be available for use in the Sponsor's business, and
may be of benefit to the Sponsor.

TAX STATUS

The following is a general discussion of certain of the Federal income tax
consequences of the purchase, ownership and disposition of the Units. The
summary is limited to investors who hold the Units as "capital assets"
(generally, property held for investment) within the meaning of Section 1221
of the Internal Revenue Code of 1986 (the "Code"). Unitholders should consult
their tax advisers in determining the Federal, state, local and any other tax
consequences of the purchase, ownership and disposition of Units in a Trust.
For purposes of the following discussion and opinions, it is assumed that each
Security is equity for Federal income tax purposes.

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<PAGE>

In the opinion of Chapman and Cutler, special counsel for the Sponsor, under
existing law:

1. Each Trust is not an association taxable as a corporation for Federal
income tax purposes; each Unitholder will be treated as the owner of a pro
rata portion of each of the assets of the Trust under the Code; and the
income of the Trust will be treated as income of the Unitholders thereof
under the Code. Each Unitholder will be considered to have received his pro
rata portion of income derived from each Trust asset when such income is
considered to be received by the Trust. A Unitholder will be considered to
have received all of the dividends paid on his pro rata portion of each
Security when such dividends are considered to be received by the Trust
regardless of whether such dividends are used to pay a portion of the
deferred sales charge. Unitholders will be taxed in this manner regardless
of whether distributions from a Trust are actually received by the
Unitholder or are automatically reinvested.

2. Each Unitholder will have a taxable event when a Trust disposes of a
Security (whether by sale, taxable exchange, liquidation, redemption, or
otherwise) or upon the sale or redemption of Units by such Unitholder
(except to the extent an in-kind distribution of stock is received by such
Unitholder as described below). The price a Unitholder pays for his or her
Units, generally including sales charges, is allocated among his or her pro
rata portion of each Security held by a Trust (in proportion to the fair
market values thereof on the valuation date closest to the date the
Unitholder purchases his or her Units) in order to determine his or her tax
basis for his or her pro rata portion of each Security held by the Trust.
Unitholders should consult their own tax advisors with regard to the
calculation of basis. For Federal income tax purposes, a Unitholder's pro
rata portion of dividends, as defined by Section 316 of the Code, paid by a
corporation with respect to a Security held by the Trust is taxable as
ordinary income to the extent of such corporation's current and accumulated
"earnings and profits." A Unitholder's pro rata portion of dividends paid
on such Security which exceeds such current and accumulated earnings and
profits will first reduce a Unitholder's tax basis in such Security, and to
the extent that such dividends exceed a Unitholder's tax basis in such
Security shall generally be treated as capital gain. In general, the
holding period for such capital gain will be determined by the period of
time a Unitholder has held his or her Units.

3. A Unitholder's portion of gain, if any, upon the sale or redemption of
Units or the disposition of Securities held by the Trust will generally be
considered a capital gain (except in the case of a dealer or a financial
institution). A Unitholder's portion of loss, if any, upon the sale or
redemption of Units or the disposition of Securities held by the Trust will
generally be considered a capital loss (except in the case of a dealer or a
financial institution). Unitholders should consult their tax advisors
regarding the recognition of such capital gains and losses for Federal
income tax purposes. In particular, a Rollover Unitholder should be aware
that a Rollover Unitholder's loss, if any, incurred in connection with the
exchange of Units for units in the next new series of a Trust (the "New
Trust"), (the Sponsor intends to create a separate New Trust in conjunction
with the termination of the Trust) will generally be disallowed with
respect to the disposition of any Securities pursuant to such exchange to
the extent that such Unitholder is considered the owner of substantially
identical securities under the wash sale provisions of the Code taking into
account such Unitholder's deemed ownership of the securities underlying the
Units in the New Trust in the manner described above, if such substantially
identical securities are acquired within a period beginning 30 days before
and ending 30 days after such disposition. However, any gains incurred in
connection with such an exchange by a Rollover Unitholder would be
recognized. Unitholders should consult their tax advisers regarding the
recognition of gains and losses for Federal income tax purposes.

Deferred Sales Charge. Generally the tax basis of a Unitholder includes
sales charges, and such charges are not deductible. A portion of the sales
charge is deferred. It is possible that for Federal income tax purposes, a
portion of the deferred sales charge may be treated as interest which would be
deductible by a Unitholder subject to limitations on the deduction of
investment interest. In such case,

20
<PAGE>

the non-interest portion of the deferred sales charge would be added to the
Unitholder's tax basis in his or her Units. The deferred sales charge could
cause the Unitholder's Units to be considered to be debt-financed under
Section 246A of the Code which would result in a small reduction of the
dividends received deduction. In any case, the income (or proceeds from
redemption) a Unitholder must take into account for Federal income tax
purposes is not reduced by amounts deducted to pay the deferred sales charge.
Unitholders should consult their own tax advisers as to the income tax
consequences of the deferred sales charge.

Dividends Received Deduction. A corporation that owns Units will generally
be entitled to a 70% dividends received deduction with respect to such
Unitholder's pro rata portion of dividends received by the Trust (to the
extent such dividends are taxable as ordinary income, as discussed above and
are attributable to domestic corporations) in the same manner as if such
corporation directly owned the Securities paying such dividends (other than
corporate Unitholders, such as "S" corporations, which are not eligible for
the deduction because of their special characteristics and other than for
purposes of special taxes such as the accumulated earnings tax and the
personal holding corporation tax). However, a corporation owning Units should
be aware that Sections 246 and 246A of the Code impose additional limitations
on the eligibility of dividends for the 70% dividends received deduction.
These limitations include a requirement that stock (and therefore Units) must
generally be held at least 46 days (as determined under and during the period
specified in Section 246(c) of the Code). Final regulations have been issued
which address special rules that must be considered in determining whether the
46-day holding period requirement is met. Moreover, the allowable percentage
of the deduction will be reduced from 70% if a corporate Unitholder owns
certain stock (or Units) the financing of which is directly attributable to
indebtedness incurred by such corporation. It should be noted that various
legislative proposals that would affect the dividends received deduction have
been introduced. Unitholders should consult with their tax advisers with
respect to the limitations on and possible modifications to the dividends
received deduction.

To the extent dividends received by the Trust are attributable to foreign
corporations, a corporation that owns Units will not be entitled to the
dividends received deduction with respect to its pro rata portion of such
dividends, since the dividends received deduction is generally available only
with respect to dividends paid by domestic corporations.

Limitations on Deductibility of Trust Expenses by Unitholders. Each
Unitholder's pro rata share of each expense paid by a Trust is deductible by
the Unitholder to the same extent as though the expense had been paid directly
by him or her. It should be noted that as a result of the Tax Reform Act of
1986, certain miscellaneous itemized deductions, such as investment expenses,
tax return preparation fees and employee business expenses will be deductible
by an individual only to the extent they exceed 2% of such individual's
adjusted gross income. Unitholder's may be required to treat some or all of
the expenses of a Trust as miscellaneous itemized deductions subject to this
limitation. Unitholders should consult with their tax advisers regarding the
limitations on the deductibility of Trust expenses. Unitholders should consult
with their tax advisers regarding the limitations on the deductibility of
Trust expenses.

Recognition of Taxable Gain or Loss Upon Disposition of Securities by a
Trust or Disposition of Units. As discussed above, a Unitholder may recognize
taxable gain (or loss) when a Security is disposed of by the Trust or if the
Unitholder disposes of a Unit (although losses incurred by Rollover
Unitholders may be subject to disallowance, as discussed above). The Internal
Revenue Service Restructuring and Reform Act of 1998 (the "1998 Tax Act")
provides that for taypayers other than corporations, net capital gain (which
is defined as net long-term capital gain over net short-term capital loss for
the taxable year) realized from property (with certain exclusions) is subject
to a maximum marginal stated tax rate of 20% (10% in the case of certain
taxpayers in the lowest tax bracket). Capital gain or loss is long-term if the
holding period for the asset is more than one year, and is short-term if the
holding period for the asset

21
<PAGE>

is one year or less. The date on which a Unit is acquired (i.e., the "trade
date") is excluded for purposes for determining the holding period of the
Unit. The legislation is generally effective retroactively for amounts
properly taken into account on or after January 1, 1998. Capital gains
realized from assets held for one year or less are taxed at the same rates as
ordinary income.

In addition, please note that capital gains may be recharacterized as
ordinary income in the case of certain financial transactions that are
considered "conversion transactions" effective for transactions entered into
after April 30, 1993. Unitholders and prospective investors should consult
with their tax advisers regarding the potential effect of this provision on
their investment in Units.

If the Unitholder disposes of a Unit, the Unitholder is deemed thereby to
have disposed of his or her entire pro rata interest in all assets of the
Trust involved including his or her pro rata portion of all the Securities
represented by the Unit.

The Taxpayer Relief Act of 1997 (the "1997 Act") includes provisions that
treat certain transactions designed to reduce or eliminate risk of loss and
opportunities for gain (e.g., short sales, offsetting notional principal
contracts, futures or forward contracts or similar transactions) as
constructive sales for purposes of recognition of gain (but not loss) and for
purposes of determining the holding period. Unitholders should consult their
own tax advisors with regard to any such constructive sales rules.

Special Tax Consequences of In-Kind Distributions Upon Redemption of Units,
Termination of a Trust and Investment in a New Trust. As discussed in
"REDEMPTION" and "OTHER INFORMATION-- Termination of Indenture," under certain
circumstances a Unitholder who owns at least 1,000 Units of a Trust may
request an In-Kind Distribution upon the redemption of Units or the
termination of such Trust. The Unitholder requesting an In-Kind Distribution
will be liable for expenses related thereto (the "Distribution Expenses") and
the amount of such In-Kind Distribution will be reduced by the amount of the
Distribution Expenses. See "DISTRIBUTIONS TO UNITHOLDERS." As previously
discussed, prior to the redemption of Units or the termination of a Trust, a
Unitholder is considered as owning a pro rata portion of each of the Trust's
assets for Federal income tax purposes. The receipt of an In-Kind Distribution
upon the redemption of Units or the termination of a Trust will result in a
Unitholder receiving an undivided interest in whole shares of stock plus,
possibly, cash.

The potential tax consequences that may occur under an In-Kind Distribution
will depend on whether or not a Unitholder receives cash in addition to
Securities. A "Security" for this purpose is a particular class of stock
issued by a particular corporation. A Unitholder will not recognize gain or
loss if a Unitholder only receives Securities in exchange for his or her pro
rata portion in the Securities held by the Trust. However, if a Unitholder
also receives cash in exchange for a fractional share of a Security held by
the Trust, such Unitholder will generally recognize gain or loss based upon
the difference between the amount of cash received by the Unitholder and his
or her tax basis in such fractional share of a Security held by a Trust.

Because each Trust will own many Securities, a Unitholder who requests an
In-Kind Distribution will have to analyze the tax consequences with respect to
each Security owned by the Trust. The amount of taxable gain (or loss)
recognized upon such exchange will generally equal the sum of the gain (or
loss) recognized under the rules described above by such Unitholder with
respect to each Security owned by the Trust. Unitholders who request an In-
Kind Distribution are advised to consult their tax advisers in this regard.

As discussed in "SPECIAL REDEMPTION, LIQUIDATION AND INVESTMENT IN A NEW
TRUST," a Unitholder may elect to become a Rollover Unitholder. To the extent
a Rollover Unitholder exchanges his or her Units for Units of the New Trust in
a taxable transaction, such Unitholder will recognize gains, if any, but
generally will not be entitled to a deduction for any losses recognized upon
the disposition of any Securities pursuant to such exchange to the extent that
such Unitholder is considered the owner

22
<PAGE>

of substantially identical securities under the wash sale provisions of the
Code taking into account such Unitholder's deemed ownership of the securities
underlying the Units in the New Trust in the manner described above, if such
substantially identical securities were acquired within a period beginning 30
days before and ending 30 days after such disposition under the wash sale
provisions contained in Section 1091 of the Code. In the event a loss is
disallowed under the wash sale provisions, special rules contained in Section
1091(d) of the Code apply to determine the Unitholder's tax basis in the
securities acquired. Rollover Unitholders are advised to consult their tax
advisers.

Computation of the Unitholder's Tax Basis. Initially, a Unitholder's tax
basis in his or her Units will generally equal the price paid by such
Unitholder for his or her Units. The cost of the Units is allocated among the
Securities held by the Trust in accordance with the proportion of the fair
market values of such Securities on the valuation date nearest the date the
Units are purchased in order to determine such Unitholder's tax basis for his
or her pro rata portion of each Security.

A Unitholder's tax basis in his or her Units and his or her pro rata portion
of a Security held by a Trust will be reduced to the extent dividends paid
with respect to such Security are received by the Trust which are not taxable
as ordinary income as described above.

General. Each Unitholder will be requested to provide the Unitholder's
taxpayer identification number to the Trustee and to certify that the
Unitholder has not been notified that payments to the Unitholder are subject
to back-up withholding. If the proper taxpayer identification number and
appropriate certification are not provided when requested, distributions by
the Trust to such Unitholder (including amounts received upon the redemption
of Units) will be subject to back-up withholding. Distributions by the Trust
(other than those that are not treated as United States source income, if any)
will generally be subject to United States income taxation and withholding in
the case of Units held by non-resident alien individuals, foreign corporations
or other non-United States persons. Such persons should consult their tax
advisers.

At the termination of a Trust, the Trustee will furnish to each Unitholder a
statement containing information relating to the dividends received by the
Trust on the Securities, the gross proceeds received by the Trust from the
disposition of any Security (resulting from redemption or the sale of any
Security) and the fees and expenses paid by the Trust. The Trustee will also
furnish annual information returns to Unitholders and the Internal Revenue
Service.

Unitholders desiring to purchase Units for tax-deferred plans and IRAs
should consult their broker for details on establishing such accounts. Units
may also be purchased by persons who already have self-directed plans
established. See "RETIREMENT PLANS."

In the opinion of Carter, Ledyard & Milburn, Special Counsel to the Trusts
for New York tax matters, under the existing income tax laws of the State of
New York, each Trust is not an association taxable as a corporation and the
income of each Trust will be treated as the income of the Unitholders thereof.

The foregoing discussion relates only to the tax treatment of U.S.
Unitholders ("U.S. Unitholder") with regard to federal and certain aspects of
New York State and City income taxes. Unitholders may be subject to taxation
in New York or in other jurisdictions and should consult their own tax
advisers in this regard. As used herein, the term "U.S. Unitholder" means an
owner of a Unit in a Trust that (a) is (i) for United States federal income
tax purposes a citizen or resident of the United States, (ii) a corporation,
partnership or other entity created or organized in or under the laws of the
United States or of any political subdivision thereof, or (iii) an estate or
trust the income of which is subject to United States federal income taxation
regardless of its source or (b) does not qualify as a U.S. Unitholder in
paragraph (a) but whose income from a Unit is effectively connected with such
Unitholder's conduct of a United States trade or business. The term also
includes certain former citizens of the United States whose income and gain on
the Units will be taxable. Unitholders should consult their tax advisers
regarding potential foreign, state or local taxation with respect to the
Units.

23
<PAGE>

RETIREMENT PLANS

Units of the Trusts may be well suited for purchase by Individual Retirement
Accounts, Keogh Plans, pension funds and other tax-deferred retirement plans.
Generally the Federal income tax relating to capital gains and income received
in each of the foregoing plans is deferred until distributions are received.
Distributions from such plans are generally treated as ordinary income but may,
in some cases, be eligible for special averaging or tax-deferred rollover
treatment. Investors considering participation in any such plan should review
specific tax laws related thereto and should consult their attorneys or tax
advisers with respect to the establishment and maintenance of any such plan.
Such plans are offered by brokerage firms and other financial institutions.
Fees and charges with respect to such plans may vary.

TRUST OPERATING EXPENSES

No annual advisory fee is charged to the Trusts by the Sponsor. The Sponsor
and/or its affiliates do, however, receive an annual fee as set forth in
"Expense Information" in Part A of the Prospectus for maintaining surveillance
over the portfolio (the "Sponsor's Supervisory Fee"). In providing such
supervisory services, the Sponsor may purchase research from a variety of
sources, which may include dealers of the Trust. If so provided in Part A of
the Prospectus, the Sponsor may also receive an annual fee for providing
bookkeeping and administrative services for a Trust (the "Bookkeeping and
Administration Fee"). Such services include, but are not limited to, the
preparation of comprehensive tax statements, providing account information to
the Unitholders, . In addition, if so provided in Part A of the
Prospectus, a Trust may be charged an annual licensing fee to cover licenses
for the use of service marks, trademarks and trade names and/or for the use of
databases and research. Estimated annual Trust expenses are as set forth in
Part A of this Prospectus; if actual expenses are higher than the estimate, the
excess will be borne by the Trust. The estimated expenses do not include the
brokerage commissions payable by the Trust in purchasing and selling
Securities.

The Trustee receives for ordinary recurring services an annual fee for each
Trust as set forth in "Expense Information" appearing in Part A of this
Prospectus. The Trustee's Fee may be periodically adjusted in response to
fluctuations in short-term interest rates (reflecting the cost to the Trustee
of advancing funds to a Trust to meet scheduled distributions). In addition,
the Sponsor's Supervisory Fee, Bookkeeping and Administration Fee and the
Trustee's Fee may be adjusted in accordance with the cumulative percentage
increase of the United States Department of Labor's Consumer Price Index
entitled "All Services Less Rent of Shelter" since the establishment of the
Trusts. The Trustee has the use of funds, if any, being held in the Income and
Capital Accounts of each Trust for future distributions, payment of expenses
and redemptions. These Accounts are non-interest bearing to Unitholders.
Pursuant to normal banking procedures, the Trustee benefits from the use of
funds held therein. Part of the Trustee's compensation for its services to the
Trusts is expected to result from such use of these funds.

The following are additional expenses of the Trusts and, when paid by or are
owed to the Trustee, are secured by a lien on the assets of the Trust or Trusts
to which such expenses are allocable: (1) the expenses and costs of any action
undertaken by the Trustee to protect the Trusts and the rights and interests of
the Unitholders; (2) all taxes and other governmental charges upon the
Securities or any part of the Trusts (no such taxes or charges are being levied
or made or, to the knowledge of the Sponsor, contemplated); (3) amounts payable
to the Trustee as fees for ordinary recurring services and for extraordinary
non-recurring services rendered pursuant to the Indenture, all disbursements
and expenses, including counsel fees (including fees of counsel which the
Trustee may retain) sustained or incurred by the Trustee in connection
therewith; and (4) any losses or liabilities accruing to the Trustee without
negligence, bad faith or willful misconduct on its part. The Trustee is
empowered to sell Securities in order to pay these amounts if funds are not
otherwise available in the applicable Income and Capital Accounts.

24
<PAGE>

DISTRIBUTIONS TO UNITHOLDERS

The Trustee will distribute any net income received with respect to any of
the Securities in a Trust on or about the Income Distribution Dates to
Unitholders of record on the preceding Income Record Date. See "Distributions"
in Part A of this Prospectus. Persons who purchase Units will commence
receiving distributions only after such person becomes a Record Owner.
Notification to the Trustee of the transfer of Units is the responsibility of
the purchaser, but in the normal course of business such notice is provided by
the selling broker/dealer. Proceeds received on the sale of any Securities in
a Trust, to the extent not used to meet redemptions of Units, pay the deferred
sales charge or pay expenses will be distributed on the last day of each month
if the amount available for distribution equals at least $1.00 per 100 Units
("Capital Distribution Dates") to Unitholders of record on the fifteenth day
of each applicable month ("Capital Record Dates"). The Trustee is not required
to pay interest on funds held in the Capital Account of a Trust (but may
itself earn interest thereon and therefore benefit from the use of such
funds). A Unitholder's pro rata portion of the Capital Account, less expenses,
will be distributed as part of the final liquidation distribution.

It is anticipated that the deferred sales charge will be collected from the
Capital Account of the Trusts and that amounts in the Capital Account will be
sufficient to cover the cost of the deferred sales charge. To the extent that
amounts in the Capital Account are insufficient to satisfy the then current
deferred sales charge obligation, Securities may be sold to meet such
shortfall. Distributions of amounts necessary to pay the deferred portion of
the sales charge will be made to an account designated by the Sponsor for
purposes of satisfying a Unitholder's deferred sales charge obligations.

Under regulations issued by the Internal Revenue Service, the Trustee is
required to withhold a specified percentage of any distribution made by a
Trust if the Trustee has not been furnished the Unitholder's tax
identification number in the manner required by such regulations. Any amount
so withheld is transmitted to the Internal Revenue Service and may be
recovered by the Unitholder under certain circumstances by contacting the
Trustee, otherwise the amount may be recoverable only when filing a tax
return. Under normal circumstances, the Trustee obtains the Unitholder's tax
identification number from the selling broker. However, a Unitholder should
examine his or her statements from the Trustee to make sure that the Trustee
has been provided a certified tax identification number in order to avoid this
possible "back-up withholding." In the event the Trustee has not been
previously provided such number, one should be provided as soon as possible.

Within a reasonable time after a Trust is terminated, each Unitholder who is
not a Rollover Unitholder will, upon surrender of his Units for redemption,
receive (i) the pro rata share of the amounts realized upon the disposition of
Securities, unless he or she elects an In-Kind Distribution as described under
"REDEMPTION" and (ii) a pro rata share of any other assets of such Trust, less
expenses of such Trust.

The Trustee will credit to the Income Account of a Trust any dividends
received on the Securities therein. All other receipts (e.g., return of
capital, etc.) are credited to the Capital Account of a Trust.

The Trustee may establish reserves (the "Reserve Account") within a Trust
for state and local taxes, if any, and any governmental charges payable out of
such Trust.

Distribution Reinvestment. Any Unitholder may elect to have each
distribution of income on his Units, other than the final liquidating
distribution in connection with the termination of a Trust or interim
liquidating distribution for Interim Rollover Unitholders, automatically
reinvested in additional Units of such Trust. Each person who purchases Units
of a Trust may elect to participate in the reinvestment option by notifying
the Trustee in writing of their election. Reinvestment may not be available in
all states. Notification to the Trustee must be received within 10 days prior
to the Record Date for such distributions. Each subsequent distribution of
income and/or capital, as selected by the Unitholder, will

25
<PAGE>

be automatically applied by the Trustee to purchase additional Units of a
Trust. The remaining deferred sales charge payments will be assessed on Units
acquired pursuant to reinvestment. It should be remembered that even if
distributions are reinvested, they are still treated as distributions for
income tax purposes.

ACCUMULATION PLAN

The Sponsor is also the principal underwriter of several open-end mutual
funds (the "Accumulation Funds") into which Unitholders may choose to reinvest
Trust distributions. Unitholders may elect to reinvest income and capital
distributions automatically, without any sales charge. Each Accumulation Fund
has investment objectives which differ in certain respects from those of the
Trusts and may invest in securities which would not be eligible for deposit in
the Trusts. Further information concerning the Accumulation Plan and a list of
Accumulation Funds is set forth in the Information Supplement of this
Prospectus, which may be obtained by contacting the Trustee at the phone
number listed on the back cover of this Prospectus.

Participants may at any time, by so notifying the Trustee in writing, elect
to change the Accumulation Fund into which their distributions are being
reinvested, to change from capital only reinvestment to reinvestment of both
capital and income or vice versa, or to terminate their participation in the
Accumulation Plan altogether and receive future distributions on their Units
in cash. Such notice will be effective as of the next Record Date occurring at
least 10 days after the Trustee's receipt of the notice. There will be no
charge or other penalty for such change of election or termination. The
character of Trust distributions for income tax purposes will remain unchanged
even if they are reinvested in an Accumulation Fund.

REPORTS TO UNITHOLDERS

The Trustee shall furnish Unitholders of a Trust in connection with each
distribution, a statement of the amount of income, if any, and the amount of
other receipts (received since the preceding distribution) being distributed,
expressed in each case as a dollar amount representing the pro rata share of
each Unit of a Trust outstanding. Within a reasonable period of time after the
end of each calendar year, the Trustee shall furnish to each person, who at
any time during the calendar year was a registered Unitholder of a Trust, a
statement with respect to such Trust that provides (1) a summary of
transactions in the Trust for such year; (2) any Security sold during the year
and the Securities held at the end of such year by the Trust; (3) the
redemption price per Unit based upon a computation thereof on the 31st day of
December of such year (or the last business day prior thereto); and (4)
amounts of income and capital distributed during such year.

In order to comply with Federal and state tax reporting requirements,
Unitholders will be furnished, upon request to the Trustee, evaluations of the
Securities in the Trust.

UNIT VALUE AND EVALUATION

The value of the Trust is determined by the Trustee on the basis of (1) the
cash on hand in the Trust other than cash deposited in the Trust to purchase
Securities not applied to the purchase of such Securities; (2) the aggregate
value of the Securities held in the Trust, as determined by the Evaluator on
the basis of the aggregate underlying value of the Securities in the Trust
next computed; (3) dividends receivable on the Securities trading ex-dividend
as of the date of computation; and (4) all other assets of the Trust; and
deducting therefrom: (1) amounts representing any applicable taxes or
governmental charges and amounts due the Sponsor or Trustee for
indemnification or extraordinary expenses payable out of such Trust for which
no deductions had been made for the purpose of additions to the Reserve
Account; (2) any amounts owing to the Trustee for its advances; (3) an amount
representing estimated

26
<PAGE>

accrued expenses of the Trust, including, but not limited to, unpaid fees and
expenses of the Trustee (including legal fees) and the Sponsor; (4) amounts
representing unpaid organizational and offering costs; (5) cash held for
distribution to Unitholders of record of the Trust or for redemption of
tendered Units as of the business day prior to the evaluation being made; and
(6) other liabilities incurred by the Trust. The result of such computation is
divided by the number of Units of such Trust outstanding as of the date
thereof and rounded to the nearest cent to determine the per Unit value ("Unit
Value") of such Trust. The Trustee may determine the aggregate value of the
Securities in the Trust in the following manner: if the Securities are listed
on a securities exchange or the NASDAQ National Market System ("listed
Securities"), this evaluation is generally based on the closing sale price on
that exchange or that system (if a listed Security is listed on the New York
Stock Exchange ("NYSE") the closing sale price on the NYSE shall apply) or, if
there is no closing sale price on that exchange or system, at the closing bid
prices (ask prices for primary market purchases). If the Securities are not so
listed, the evaluation shall generally be based on the current bid prices (ask
prices for primary market purchases) on the over-the-counter market (unless it
is determined that these prices are inappropriate as a basis for valuation).
If current bid prices are unavailable, the evaluation is generally determined
(a) on the basis of current bid prices for comparable securities, (b) by
appraising the value of the Securities on the bid side of the market or (c) by
any combination of the above.

With respect to any Security not listed on a national exchange or the NASDAQ
National Market System, or, with respect to a Security so listed but the
Trustee deems the last reported sale price on the relevant exchange to be
inappropriate as a basis for valuation, upon the Trustee's request, the
Sponsor shall, from time to time, designate one or more evaluation services or
other sources of information on which the Trustee shall be authorized
conclusively to rely in evaluating such Security, and the Trustee shall have
no liability for any errors in the information so received. The cost thereof
shall be an expense reimbursable to the Trustee from the Income and Capital
Accounts.

DISTRIBUTIONS OF UNITS TO THE PUBLIC

Nuveen, in addition to being the Sponsor, is the sole Underwriter of the
Units. It is the intention of the Sponsor to qualify Units of the Trusts for
sale under the laws of substantially all of the states of the United States of
America.

Promptly following the deposit of Securities in exchange for Units of the
Trusts, it is the practice of the Sponsor to place all of the Units as
collateral for a letter or letters of credit from one or more commercial banks
under an agreement to release such Units from time to time as needed for
distribution. Under such an arrangement the Sponsor pays such banks
compensation based on the then current interest rate. This is a normal
warehousing arrangement during the period of distribution of the Units to
public investors. To facilitate the handling of transactions, sales of Units
shall be limited to transactions involving a minimum of either $1,000 or 100
Units ($500 or nearest whole number of Units whose value is less than $500 for
Education IRA purchases), whichever is less. The Sponsor reserves the right to
reject, in whole or in part, any order for the purchase of Units.

The Sponsor plans to allow a discount to brokers and dealers in connection
with the distribution of Units. The amounts of such discounts are set forth in
Part A of this Prospectus.

The Sponsor may maintain a secondary market for Units of each Trust. See
"MARKET FOR UNITS."

The Sponsor reserves the right to change the amount of the dealer
concessions set forth in Part A of this Prospectus from time to time.

For Units purchased during the initial offering period by Unitholders who
utilize redemption or termination proceeds from other Nuveen-sponsored unit
investment trusts and receive the sales charge applicable for "Rollovers" as
described in Part A of the Prospectus, dealers are entitled to receive the
concession applicable for "Rollovers" as provided in Part A of the Prospectus.

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<PAGE>

At the discretion of the Sponsor, volume incentives can be earned as a
marketing allowance by dealer firms who reach cumulative firm sales or sales
arrangement levels of a specified number of Units of an individual Trust
during the primary offering period as set forth in the table below. For firms
that meet the necessary volume level for a Trust, volume incentives may be
given on all trades involving that Trust originated from or by that firm
during the primary offering period.

Primary Market Volume Incentives

<TABLE>
<CAPTION>
PER TRUST SALES LEVEL DURING VOLUME INCENTIVE
THE PRIMARY OFFERING PERIOD PER UNIT
--------------------------------------- ----------------
<S> <C>
500,000 but less than 1,000,000 Units $0.005
1,000,000 but less than 2,000,000 Units $0.010
2,000,000 Units or more $0.020
</TABLE>

Only sales through the Sponsor qualifying for volume incentives and for
meeting minimum requirements. The Sponsor reserves the right to modify or
change the volume incentive schedule at any time and make the determination as
to which firms qualify for the marketing allowance and the amount paid.

Registered investment advisers, certified financial planners and registered
broker-dealers who in each case either charge periodic fees for financial
planning, investment advisory or asset management services, or provide such
services in connection with the establishment of an investment account for
which a comprehensive "wrap fee" charge is imposed, and bank trust departments
investing funds over which they exercise exclusive discretionary investment
authority and that are held in a fiduciary, agency, custodial or similar
capacity, are not entitled to receive any dealer concession for any sales made
to investors which qualified as "Discounted Purchases" during the primary or
secondary market. (See "PUBLIC OFFERING PRICE.")

Certain commercial banks are making Units of the Trusts available to their
customers on an agency basis. A portion of the sales charge paid by these
customers is retained by or remitted to the banks in the amounts shown in Part
A of the Prospectus under "Dealer Concessions." The Glass-Steagall Act
prohibits banks from underwriting Trust Units; the Act does, however, permit
certain agency transactions and banking regulators have not indicated that
these particular agency transactions are not permitted under the Act. In Texas
and in certain other states, any bank making Units available must be
registered as a broker-dealer under state law.

OWNERSHIP AND TRANSFER OF UNITS

The ownership of Units is evidenced by registered Certificates unless the
Unitholder expressly requests that ownership be evidenced by a book entry
position recorded on the books and records of the Trustee. The Trustee is
authorized to treat as the owner of Units that person who at the time is
registered as such on the books of the Trustee. Any Unitholder who holds a
Certificate may change to book entry ownership by submitting to the Trustee
the Certificate along with a written request that the Units represented by
such Certificate be held in book entry form. Likewise, a Unitholder who holds
Units in book entry form may obtain a Certificate for such Units by written
request to the Trustee. Units may be held in denominations of one Unit or any
multiple or fraction thereof. Fractions of Units are computed to three decimal
places. Any Certificates issued will be numbered serially for identification,
and are issued in fully registered form, transferable only on the books of the
Trustee. Book entry Unitholders will receive a Book Entry Position
Confirmation reflecting their ownership.

Units are transferable by making a written request to the Trustee and, in
the case of Units evidenced by Certificate(s), by presenting and surrendering
such Certificate(s) to the Trustee, at its address listed on the back cover of
this Part B of the Prospectus, properly endorsed or accompanied by a written
instrument or instruments of transfer. The Certificate(s) should be sent
registered or certified mail for the protection of the Unitholders. Each
Unitholder must sign such written request, and such Certificate(s) or

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transfer instrument, exactly as his name appears on (a) the face of the
Certificate(s) representing the Units to be transferred, or (b) the Book Entry
Position Confirmation(s) relating to the Units to be transferred. Such
signature(s) must be guaranteed by a guarantor acceptable to the Trustee. In
certain instances the Trustee may require additional documents such as, but not
limited to, trust instruments, certificates of death, appointments as executor
or administrator or certificates of corporate authority. Mutilated Certificates
must be surrendered to the Trustee in order for a replacement Certificate to be
issued. Although at the date hereof no charge is made and none is contemplated,
a Unitholder may be required to pay $2.00 to the Trustee for each Certificate
reissued or transfer of Units requested and to pay any governmental charge
which may be imposed in connection therewith.

REPLACEMENT OF LOST, STOLEN OR DESTROYED CERTIFICATES

To obtain a new Certificate replacing one that has been lost, stolen, or
destroyed, the Unitholder must furnish the Trustee with sufficient
indemnification and pay such expenses as the Trustee may incur. This
indemnification must be in the form of an Open Penalty Bond of Indemnification.
The premium for such an indemnity bond may vary, but currently amounts to 1% of
the market value of the Units represented by the Certificate. In the case
however, of a Trust as to which notice of termination has been given, the
premium currently amounts to 0.5% of the market value of the Units represented
by such Certificate.

REDEMPTION

Unitholders may redeem all or a portion of their Units by (1) making a
written request for such redemption (book entry Unitholders may use the
redemption form on the reverse side of their Book Entry Position Confirmation)
to the Trustee at its address listed on the back cover of this Part B of the
Prospectus (redemptions of 1,000 Units or more will require a signature
guarantee), (2) in the case of Units evidenced by a Certificate, by also
tendering such Certificate to the Trustee, duly endorsed or accompanied by
proper instruments of transfer with signatures guaranteed as explained above,
or provide satisfactory indemnity required in connection with lost, stolen or
destroyed Certificates and (3) payment of applicable governmental charges, if
any. Certificates should be sent only by registered or certified mail to
minimize the possibility of their being lost or stolen. (See "OWNERSHIP AND
TRANSFER OF UNITS.") No redemption fee will be charged. A Unitholder may
authorize the Trustee to honor telephone instructions for the redemption of
Units held in book entry form. Units represented by Certificates may not be
redeemed by telephone. The proceeds of Units redeemed by telephone will be sent
by check either to the Unitholder at the address specified on his account or to
a financial institution specified by the Unitholder for credit to the account
of the Unitholder. A Unitholder wishing to use this method of redemption must
complete a Telephone Redemption Authorization Form and furnish the Form to the
Trustee. Telephone Redemption Authorization Forms can be obtained from a
Unitholder's registered representative or by calling the Trustee. Once the
completed Form is on file, the Trustee will honor telephone redemption requests
by any authorized person. The time a telephone redemption request is received
determines the "date of tender" as discussed below. The redemption proceeds
will be mailed within three business days following the telephone redemption
request. Only Units held in the name of individuals may be redeemed by
telephone; accounts registered in broker name, or accounts of corporations or
fiduciaries (including among others, trustees, guardians, executors and
administrators) may not use the telephone redemption privilege.

On the third business day following the date of tender, the Unitholder will
be entitled to receive in cash for each Unit tendered an amount equal to the
Unit Value of such Trust determined by the Trustee, as of 4:00 p.m. eastern
time, or as of any earlier closing time on a day on which the Exchange is
scheduled in advance to close at such earlier time, on the date of tender as
defined hereafter ("Redemption Price"). During the initial offering period, the
Redemption Price per Unit includes estimated organizational and offering costs
per Unit. After the initial offering period, the Redemption

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<PAGE>

Price will not include such estimated organizational and offering costs. See
"Trust Summary and Financial Highlights" in Part A of the Prospectus. The
price received upon redemption may be more or less than the amount paid by the
Unitholder depending on the value of the Securities on the date of tender.
Units subject to a deferred sales charge which are tendered for redemption
prior to such time as the entire deferred sales charge on such Units has been
collected will be assessed the amount of the remaining deferred sales charge
at the time of redemption. However, if so provided in Part A of the
Prospectus, Unitholders who elect to roll their Units into a new series of the
Trust or a trust with a similar investment strategy during the Interim Special
Redemption and Liquidation Period or Unitholders who sell or redeem their
Units at or before the Second Year Commencement Date will not be assessed a
deferred sales charge for the Second Year Deferred Period and accordingly are
only responsible for the remaining deferred sales charges for the First Year
Deferred Period. In addition, in the event of the death of a Unitholder within
the one-year period prior to redemption, any deferred sales charge remaining
at the time of redemption shall be waived. Unitholders should check with the
Trustee or their broker to determine the Redemption Price before tendering
Units.

The "date of tender" is deemed to be the date on which the request for
redemption of Units is received in proper form by the Trustee, except that a
redemption request received after 4:00 p.m. eastern time, or as of any earlier
closing time on a day on which the Exchange is scheduled in advance to close
at such earlier time, or on any day on which the Exchange is normally closed,
the date of tender is the next day on which such Exchange is normally open for
trading and such request will be deemed to have been made on such day and the
redemption will be effected at the Redemption Price computed on that day.

Any Unitholder tendering 1,000 Units or more for redemption may request by
written notice submitted at the time of tender from the Trustee, in lieu of a
cash redemption, a distribution of shares of Securities in an amount and value
of Securities per Unit equal to the Redemption Price Per Unit, as determined
as of the evaluation next following tender. In-kind distributions ("In-Kind
Distributions") shall be made by the Trustee through the distribution of each
of the Securities in book-entry form to the account of the Unitholder's bank
or broker/dealer at the Depository Trust Company. An In-Kind Distribution will
be reduced by customary transfer and registration charges. The tendering
Unitholder will receive his pro rata number of whole shares of each of the
Securities comprising a portfolio and cash from the Capital Account equal to
the fractional shares to which the tendering Unitholder is entitled. The
Trustee may adjust the number of shares of any issue of Securities included in
a Unitholder's In-Kind Distribution to facilitate the distribution of whole
shares, such adjustment to be made on the basis of the value of Securities on
the date of tender. If funds in the Capital Account are insufficient to cover
the required cash distribution to the tendering Unitholder, the Trustee may
sell Securities in the manner described below.

Under regulations issued by the Internal Revenue Service, the Trustee may be
required to withhold a specified percentage of the principal amount of a Unit
redemption if the Trustee has not been furnished the redeeming Unitholder's
tax identification number in the manner required by such regulations. For
further information regarding this withholding, see "DISTRIBUTIONS TO
UNITHOLDERS." In the event the Trustee has not been previously provided such
number, one must be provided at the time redemption is requested.

Any amounts paid on redemption representing income shall be withdrawn from
the Income Account of a Trust to the extent that funds are available for such
purpose, or from the Capital Account. All other amounts paid on redemption
shall be withdrawn from the Capital Account.

The Trustee is empowered to sell Securities of the Trust in order to make
funds available for redemption. To the extent that Securities are sold, the
size and diversity of the Trust will be reduced. Such sales may be required at
a time when Securities would not otherwise be sold and might result in lower
prices than might otherwise be realized.

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<PAGE>

The Redemption Price per Unit during the secondary market will be determined
on the basis of the Unit Value of the Trust. After the initial offering
period, the Redemption Price will not include estimated organizational and
offering costs. See "Trust Summary and Financial Highlights" in Part A of the
Prospectus. See "UNIT VALUE AND EVALUATION" for a more detailed discussion of
the factors included in determining Unit Value. The Redemption Price per Unit
will be assessed the amount, if any, of the remaining deferred sales charge at
the time of redemption.

The right of redemption may be suspended and payment postponed for any
period during which the New York Stock Exchange is closed, other than for
customary weekend and holiday closings, or during which the Securities and
Exchange Commission determines that trading on the New York Stock Exchange is
restricted or any emergency exists, as a result of which disposal or
evaluation of the Securities is not reasonably practicable, or for such other
periods as the Securities and Exchange Commission may by order permit. Under
certain extreme circumstances, the Sponsor may apply to the Securities and
Exchange Commission for an order permitting a full or partial suspension of
the right of Unitholders to redeem their Units. The Trustee is not liable to
any person in any way for any loss or damage which may result from any such
suspension or postponement.

SPECIAL REDEMPTION, LIQUIDATION AND INVESTMENT IN A NEW TRUST

If so provided in Part A of the Prospectus, it is expected that a special
redemption and liquidation will be made of Units of certain Trusts held by any
Unitholder (a "Rollover Unitholder") who affirmatively notifies the Trustee in
writing that he or she desires to participate as a Rollover Unitholder by the
appropriate Rollover Notification Date specified in the "Essential
Information" appearing in Part A of this Prospectus.

All Units of Rollover Unitholders will be redeemed In-Kind during the
appropriate Special Redemption and Liquidation Period and the underlying
Securities will be distributed to the Distribution Agent (currently the
Trustee) on behalf of the Rollover Unitholders. During the appropriate Special
Redemption and Liquidation Period (as set forth in "Essential Information" in
Part A), the Distribution Agent will be required to sell all of the underlying
Securities on behalf of Rollover Unitholders. The sales proceeds will be net
of brokerage fees, governmental charges or any expenses involved in the sales.

The Distribution Agent may engage the Sponsor, as its agent, or other
brokers to sell the distributed Securities. The Securities will be sold as
quickly as is practicable during the appropriate Special Redemption and
Liquidation Period. The Sponsor does not anticipate that the period will be
longer than one or two days, given that the Securities are usually highly
liquid. The liquidity of any Security depends on the daily trading volume of
the Security and the amount that the Sponsor has available for sale on any
particular day.

The Rollover Unitholders' proceeds will be invested in a New Trust or a
trust with a similar investment strategy (as selected by the Unitholder), if
then registered and being offered. The proceeds of redemption will be used to
buy New Trust units as the proceeds become available. Any Rollover Unitholder
may thus be redeemed out of a Trust and become a holder of an entirely
different trust, a New Trust, with a different portfolio of Securities. In
accordance with the Rollover Unitholders' offer to purchase the New Trust
units, the proceeds of the sales (and any other cash distributed upon
redemption) are expected to be invested in a New Trust, at the public offering
price, including the applicable maximum sales charge per Unit for "Rollovers"
as specified in Part A of that trust's Prospectus.

The Sponsor intends to create the New Trust units as quickly as possible,
depending upon the availability and reasonably favorable prices of the
Securities included in a New Trust portfolio, and it is intended that Rollover
Unitholders will be given first priority to purchase the New Trust units. The
Sponsor may also permit Rollover Unitholders to elect to have their proceeds
invested in a trust with a similar investment strategy, if such trust is then
registered in the Unitholder's state of residence and being

31
<PAGE>

offered. There can be no assurance, however, as to the exact timing of the
creation of the New Trust units or the aggregate number of New Trust units
which the Sponsor will create. The Sponsor may, in its sole discretion, stop
creating new units (whether permanently or temporarily) at any time it
chooses, regardless of whether all proceeds of the Special Redemption and
Liquidation have been invested on behalf of Rollover Unitholders. Cash which
has not been invested on behalf of the Rollover Unitholders in New Trust units
will be distributed within a reasonable time after such occurrence. However,
since the Sponsor can create units, the Sponsor anticipates that sufficient
units can be created, although moneys in a New Trust may not be fully invested
on the next business day.

The process of redemption, liquidation, and investment in a New Trust is
intended to allow for the fact that the portfolios selected by the Sponsor are
chosen on the basis of growth potential only for the life of the Trust, at
which point a new portfolio is chosen. A similar process of redemption,
liquidation and investment in a New Trust may be available prior to the
Mandatory Termination Date of the Trust.

It should also be noted that Rollover Unitholders may realize taxable
capital gains on the Special Redemption and Liquidation but, in certain
circumstances, will not be entitled to a deduction for certain capital losses
and, due to the procedures for investing in a New Trust, no cash would be
distributed at that time to pay any taxes. Included in the cash for the
applicable Special Redemption and Liquidation may be an amount of cash
attributable to a Unitholder's final distribution of dividend income;
accordingly, Rollover Unitholders also will not have cash from this source
distributed to pay any taxes. (See "TAX STATUS.") Recently, legislation has
been enacted that reduces the maximum stated marginal tax rate for certain
capital gains for investments held for more than 1 year to 20% (10% in the
case of certain taxpayers in the lowest tax bracket). Potential investors
should consult their tax advisors regarding the potential effect of the Act on
their investment in Units. In addition, it should be noted that legislative
proposals are introduced from time to time that affect tax rates and could
affect relative differences at which ordinary income and capital gains are
taxed.

In addition, during this period a Unitholder will be at risk to the extent
that Securities are not sold and will not have the benefit of any stock
appreciation to the extent that moneys have not been invested; for this
reason, the Sponsor will be inclined to sell and purchase the Securities in as
short a period as it can without materially adversely affecting the price of
the Securities.

Unitholders who do not inform the Distribution Agent that they wish to have
their Units so redeemed and liquidated ("Remaining Unitholders") will not
realize capital gains or losses due to the Special Redemption and Liquidation,
and will not be charged any additional sales charge.

The Sponsor may for any reason, in its sole discretion, decide not to
sponsor the New Trusts or any subsequent series of the Trusts, without penalty
or incurring liability to any Unitholder. If the Sponsor so decides, the
Sponsor shall notify the Unitholders before the appropriate Special Redemption
and Liquidation Period. All Unitholders will then be remaining Unitholders,
with rights to ordinary redemption as before. (See "REDEMPTION.") The Sponsor
may modify the terms of the New Trusts or any subsequent series of the Trusts.
The Sponsor may also modify, suspend or terminate the Rollover Option upon
notice to the Unitholders of such amendment at least 60 days prior to the
effective date of such amendment.

PURCHASE OF UNITS BY THE SPONSOR

The Trustee will notify the Sponsor of any tender of Units for redemption.
If the Sponsor's bid in the secondary market at that time equals or exceeds
the Redemption Price it may purchase such Units by notifying the Trustee
before the close of business on the second succeeding business day and by
making payment therefor to the Unitholder not later than the day on which
payment would otherwise have been made by the Trustee. (See "REDEMPTION.") The
Sponsor's current practice is to bid at the Redemption Price in the secondary
market. Units held by the Sponsor may be tendered to the Trustee for
redemption as any other Units.

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NUVEEN UNIT TRUSTS

NUVEEN EQUITY UNIT TRUST
PROSPECTUS -- PART B

OCTOBER , 1998

Sponsor John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286

Trustee The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
Telephone: 800-257-8787

Legal Counsel to Sponsor Chapman and Cutler
111 West Monroe Street
Chicago, IL 60603

Independent Arthur Andersen LLP
Public Accountants 33 West Monroe Street
for the Trust Chicago, IL 60603

Except as to statements made herein furnished by the Trustee, the Trustee
has assumed no responsibility for the accuracy, adequacy and completeness of
the information contained in this Prospectus.

When Units of the Trusts are no longer available, or for investors who will
reinvest into subsequent series of the Trusts, this Prospectus may be used as
a preliminary prospectus for a future series; in which case investors should
note the following:

Information contained herein is subject to amendment. A registration
statement relating to securities of a future series has been filed with the
Securities and Exchange Commission. These securities may not be sold nor may
offers to buy be accepted prior to the time the registration statement becomes
effective.

The Prospectus shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of these securities in any State
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such State.

This Prospectus does not contain all of the information set forth in the
registration statement and exhibits relating thereto, filed with the
Securities and Exchange Commission, Washington, D.C., under the Securities Act
of 1933, and to which reference is made.

No person is authorized to give any information or to make representations
not contained in this Prospectus or in supplemental information or sales
literature prepared by the Sponsor, and any information or representation not
contained therein must not be relied upon as having been authorized by either
the Trusts, the Trustee or the Sponsor. This Prospectus does not constitute an
offer to sell, or a solicitation of an offer to buy, securities in any State
to any Person to whom it is not lawful to make such offer in such state. The
Trusts are registered as Unit Investment Trusts under the Investment Company
Act of 1940, as amended. Such registration does not imply that the Trusts or
any of their Units have been guaranteed, sponsored, recommended or approved by
the United States or any State or agency or officer thereof.
<PAGE>

NUVEEN UNIT TRUSTS

NUVEEN SECTOR UNIT TRUST PROSPECTUS

OCTOBER __, 1998
NUVEEN UNIT TRUSTS INFORMATION SUPPLEMENT

NUVEEN UNIT TRUSTS, SERIES 18

The Information Supplement provides additional information concerning the
structure and operations of a Nuveen Unit Trust not found in the prospectuses
for the Trusts. This Information Supplement is not a prospectus and does not
include all of the information that a prospective investor should consider
before investing in a Trust. This Information Supplement should be read in
conjunction with the prospectus for the Trust in which an investor is
considering investing ("Prospectus"). Copies of the Prospectus can be obtained
by calling or writing the Trustee at the telephone number and address indicated
in Part B of the Prospectus. This Information Supplement has been created to
supplement information contained in the Prospectus.

This Information Supplement is dated October __, 1998. Capitalized terms
have been defined in the Prospectus.
<PAGE>

TABLE OF CONTENTS

Accumulation Plan

Information About the Sponsor

Dow Jones & Co., Inc.

<PAGE>

Accumulation Plan

The Sponsor, John Nuveen & Co. Incorporated, is also the principal
underwriter of the Accumulation Funds listed in the following table. Each of
these funds is an open-end, diversified management investment company into which
Unitholders may choose to reinvest Trust distributions automatically, without
any sales charge. Unitholders may reinvest both interest and capital
distributions or capital distributions only. Each Accumulation Fund has
investment objectives which differ in certain respects from those of the Trusts
and may invest in securities which would not be eligible for deposit in the
Trusts. The investment adviser to each Accumulation Fund is a wholly-owned
subsidiary of the Sponsor. Unitholders should contact their financial adviser or
the Sponsor to determine which of the Accumulation Funds they may reinvest into,
as reinvestment in certain of the Accumulation Funds may be restricted to
residents of a particular state or states. Unitholders may obtain a prospectus
for each Accumulation Fund through their financial adviser or through the
Sponsor at (800) 321-7227. For a more detailed description, Unitholders should
read the prospectus of the Accumulation Fund in which they are interested.

The following is a complete list of the Accumulation Funds currently
available, as of the Date of Deposit of this Prospectus, to Unitholders under
the Accumulation Plan. The list of available Accumulation Funds is subject to
change without the consent of any of the Unitholders.

Accumulation Funds

Mutual Funds

Nuveen Flagship Municipal Trust

Nuveen Municipal Bond Fund
Nuveen Insured Municipal Bond Fund
Nuveen Flagship All-American Municipal Bond Fund
Nuveen Flagship Limited Term Municipal Bond Fund
Nuveen Flagship Intermediate Municipal Bond Fund

Nuveen Flagship Multistate Trust I

Nuveen Flagship Arizona Municipal Bond Fund
Nuveen Flagship Colorado Municipal Bond Fund
Nuveen Flagship Florida Municipal Bond Fund
Nuveen Flagship Florida Intermediate Municipal Bond Fund
Nuveen Maryland Municipal Bond Fund
Nuveen Flagship New Mexico Municipal Bond Fund

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<PAGE>

Nuveen Flagship Pennsylvania Municipal Bond Fund
Nuveen Flagship Virginia Municipal Bond Fund

Nuveen Flagship Multistate Trust II

Nuveen California Municipal Bond Fund
Nuveen California Insured Municipal Bond Fund
Nuveen Flagship Connecticut Municipal Bond Fund
Nuveen Massachusetts Municipal Bond Fund
Nuveen Massachusetts Insured Municipal Bond Fund
Nuveen Flagship New Jersey Municipal Bond Fund
Nuveen Flagship New Jersey Intermediate Municipal Bond Fund
Nuveen Flagship New York Municipal Bond Fund
Nuveen New York Insured Municipal Bond Fund

Nuveen Flagship Multistate Trust III

Nuveen Flagship Alabama Municipal Bond Fund
Nuveen Flagship Georgia Municipal Bond Fund
Nuveen Flagship Louisiana Municipal Bond Fund
Nuveen Flagship North Carolina Municipal Bond Fund
Nuveen Flagship South Carolina Municipal Bond Fund
Nuveen Flagship Tennessee Municipal Bond Fund

Nuveen Flagship Multistate Trust IV

Nuveen Flagship Kansas Municipal Bond Fund
Nuveen Flagship Kentucky Municipal Bond Fund
Nuveen Flagship Kentucky Limited Term Municipal Bond Fund
Nuveen Flagship Michigan Municipal Bond Fund
Nuveen Flagship Missouri Municipal Bond Fund
Nuveen Flagship Ohio Municipal Bond Fund
Nuveen Flagship Wisconsin Municipal Bond Fund

Flagship Utility Income Fund

Nuveen Investment Trust

Nuveen Growth and Income Stock Fund
Nuveen Balanced Stock and Bond Fund
Nuveen Balanced Municipal and Stock Fund
Nuveen European Value Fund

Nuveen Investment Trust II

Nuveen Rittenhouse Growth Fund

Money Market Funds

Nuveen California Tax-Free Money Market Fund
Nuveen Massachusetts Tax-Free Money Market Fund

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<PAGE>

Nuveen New York Tax-Free Money Market Fund
Nuveen Tax-Free Reserves, Inc.
Nuveen Tax-Exempt Money Market Fund, Inc.

Each person who purchases Units of a Trust may become a participant in the
Accumulation Plan and elect to have his or her distributions on Units of the
Trust invested directly in shares of one of the Accumulation Funds. Reinvesting
Unitholders may elect any interest distribution plan. Thereafter, each
distribution of interest income or principal on the participant's Units
(principal only in the case of a Unitholder who has chosen to reinvest only
principal distributions) will, on the applicable distribution date, or the next
day on which the New York Stock Exchange is nominally open ("Business Day") if
the distribution date is not a business day, automatically be received by the
transfer agent for each of the Accumulation Funds, on behalf of such participant
and applied on that date to purchase shares (or fractions thereof) of the
Accumulation Fund chosen at net asset value as computed as of 4:00 p.m. eastern
time on each such date. All distributions will be reinvested in the Accumulation
Fund chosen and no part thereof will be retained in a separate account. These
purchases will be made without a sales charge.

The Transfer Agent of the Accumulation Fund will mail to each participant
in the Accumulation Plan a quarterly statement containing a record of all
transactions involving purchases of Accumulation Fund shares (or fractions
thereof) with Trust dividend distributions or as a result of reinvestment of
Accumulation Fund dividends. Any distribution of capital used to purchase shares
of an Accumulation Fund will be separately confirmed by the Transfer Agent.
Unitholders will also receive distribution statements from the Trustee detailing
the amounts transferred to their Accumulation Fund accounts.

Participants may at any time, by so notifying the Trustee in writing, elect
to change the Accumulation Fund into which their distributions are being
reinvested, to change from capital only reinvestment to reinvestment of both
capital and dividends or vice versa, or to terminate their participation in the
Accumulation Plan altogether and receive future distributions on their Units in
cash. There will be no charge or other penalty for such change of election or
termination. The character of Trust distributions for income tax purposes will
remain unchanged even if they are reinvested in an Accumulation Fund.

INFORMATION ABOUT THE SPONSOR

Since our founding in 1898, Nuveen has been synonymous with investments
that withstand the test of time. Today, we offer a broad range of investments
designed for mature investors whose portfolio is the principal source of their
ongoing financial security. More than 1.3 million investors have entrusted
Nuveen to help them maintain the lifestyle they currently enjoy.

A value investing approach--purchasing securities of strong companies and
communities that represent good long-term value--is the cornerstone of Nuveen's
investment philosophy. It is a careful, long-term strategy that offers the
potential for consistent, attractive returns with moderated risk. Successful
value investing begins with in-depth

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<PAGE>

research and a discerning eye for marketplace opportunity. Nuveen's team of
investment professionals is backed by the discipline, resources and expertise of
a century of investment experience, including one of the most recognized
research departments in the industry.

To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of taxable and tax-free investment
products--including equity and fixed-income mutual funds, unit trusts, exchange-
traded funds, customized asset management services and cash management products.

The Sponsor is also principal underwriter of the registered open-end
investment companies set forth herein under "Accumulation Plan" as well as for
the Golden Rainbow A James Advised Mutual Fund, and acted as co-managing
underwriter of Nuveen Municipal Value Fund, Inc., Nuveen California Municipal
Value Fund, Inc., Nuveen New York Municipal Value Fund, Inc., Nuveen Municipal
Income Fund, Inc., Nuveen Premium Income Municipal Fund, Inc., Nuveen
Performance Plus Municipal Fund, Inc., Nuveen California Performance Plus
Municipal Fund, Inc., Nuveen New York Performance Plus Municipal Fund, Inc.,
Nuveen Municipal Advantage Fund, Inc., Nuveen Municipal Market Opportunity Fund,
Inc. Nuveen California Municipal Market Opportunity Fund, Inc., Nuveen
Investment Quality Municipal Fund, Inc., Nuveen California Investment Quality
Municipal Fund, Inc., Nuveen New York Investment Quality Municipal Fund, Inc.,
Nuveen Insured Quality Municipal Fund, Inc., Nuveen Florida Investment Quality
Municipal Fund, Nuveen Pennsylvania Investment Quality Municipal Fund, Nuveen
New Jersey Investment Quality Municipal Fund, Inc., and the Nuveen Select
Quality Municipal Fund, Inc., Nuveen California Select Quality Municipal Fund,
Inc., Nuveen New York Select Quality Municipal Fund, Inc., Nuveen Quality Income
Municipal Fund, Inc., Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen
Florida Quality Income Municipal Fund, Nuveen Michigan Quality Income Municipal
Fund, Inc., Nuveen Ohio Quality Income Municipal Fund, Inc., Nuveen Texas
Quality Income Municipal Fund, Nuveen California Quality Income Municipal Fund,
Inc., Nuveen New York Quality Income Municipal Fund, Inc., Nuveen Premier
Municipal Income Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc.,
Nuveen Select Tax-Free Income Portfolio, Nuveen Select Tax-Free Income Portfolio
2, Nuveen Insured California Select Tax-Free Income Portfolio, Nuveen Insured
New York Select Tax-Free Income Portfolio, Nuveen Premium Income Municipal Fund
2, Inc., Nuveen Select Tax-Free Income Portfolio 3, Nuveen Select Maturities
Municipal Fund, Nuveen Insured California Premium Income Municipal Fund, Inc.,
Nuveen Arizona Premium Income Municipal Fund, Inc., Nuveen Insured Florida
Premium Income Municipal Fund, Nuveen Michigan Premium Income Municipal Fund,
Inc., Nuveen New Jersey Premium Income Municipal Fund, Inc., Nuveen Insured New
York Premium Income Municipal Fund, Inc., Nuveen Premium Income Municipal Fund
4, Inc., Nuveen Pennsylvania Premium Income Municipal Fund 2, Nuveen Maryland
Premium Income Municipal Fund, Nuveen Virginia Premium Income Municipal Fund,
Nuveen Massachusetts Premium Income Municipal Fund, Nuveen Insured California
Premium Income Municipal Fund 2, Inc., Nuveen Washington Premium Income
Municipal Fund, Nuveen Georgia Premium Income Municipal Fund, Nuveen Missouri
Premium Income Municipal Fund, Nuveen Connecticut Premium Income Municipal Fund,
Nuveen North Carolina Premium Income Municipal Fund, Nuveen California Premium
Income Municipal Fund, Nuveen

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<PAGE>

Insured Premium Income Municipal Fund 2, all registered closed-end management
investment companies. These registered open-end and closed-end investment
companies currently have approximately $35 billion in securities under
management. Nuveen is a subsidiary of The John Nuveen Company which, in turn, is
approximately 78% owned by the St. Paul Companies, Inc. ("St. Paul"). St. Paul
is located in St. Paul, Minnesota and is principally engaged in providing
property-liability insurance through subsidiaries. Nuveen is a member of the
National Association of Securities Dealers, Inc. and the Securities Industry
Association and has its principal office located in Chicago (333 West Wacker
Drive). Nuveen maintains 8 regional offices.

To help advisers and investors better understand and more efficiently use
an investment in the Trust to reach their investment goals, the Trust's sponsor,
John Nuveen & Co. Incorporated, may advertise and create specific investment
programs and systems. For example, such activities may include presenting
information on how to use an investment in the Trust, alone or in combination
with an investment in other mutual funds or unit investment trusts sponsored by
Nuveen, to accumulate assets for future education needs or periodic payments
such as insurance premiums. The Trust's sponsor may produce software or
additional sales literature to promote the advantages of using the Trust to meet
these and other specific investor needs.

The Sponsor offers a program of advertising support to registered broker-
dealer firms, banks and bank affiliates ("Firms") that sell Trust Units or
shares of Nuveen Open-End Mutual Funds (excluding money-market funds) ("Funds").
Under this program, the Sponsor will pay or reimburse the Firm for up to one
half of specified media costs incurred in the placement of advertisements which
jointly feature the Firm and the Nuveen Funds and Trusts. Reimbursements to the
Firm will be based on the number of the Firm's registered representatives who
have sold Fund Shares and/or Trust Units during the prior calendar year
according to an established schedule. Reimbursements under this program will be
made by the Sponsor and not by the Funds or Trusts.

Dow Jones & Company, Inc.

The Trusts are not sponsored, endorsed, sold or promoted by Dow Jones &
Company, Inc. ("Dow Jones"). Dow Jones makes no representation or warranty,
express or implied, to the owners of the Trusts or any member of the public
regarding the advisability of investing in securities generally or in the Trusts
particularly. Dow Jones' only relationship to the Sponsor is the licensing of
certain trademarks, trade names and service marks of Dow Jones and of the Dow
Jones Industrial Average/sm/, which is determined, composed and calculated by
Dow Jones without regard to the Sponsor or the Trusts. Dow Jones has no
obligation to take the needs of the Sponsor or the owners of the Trusts into
consideration in determining, composing or calculating the Dow Jones
Indexes/sm/. Dow Jones is not responsible for and has not participated in the
determination of the timing of, prices at, or quantities of the Trusts to be
issued or in the determination or calculation of the equation by which the
Trusts are to be converted into cash. Dow Jones has no obligation or liability
in connection with the administration, marketing or trading of the Trusts.

DOW JONES DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE
DOW JONES INDEXES/SM/ OR ANY DATA INCLUDED THEREIN AND DOW JONES SHALL HAVE NO
LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. DOW JONES MAKES
NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE SPONSOR,
OWNERS OF THE TRUSTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE DOW
JONES INDEXES/SM/ OR ANY DATA INCLUDED THEREIN. DOW JONES MAKES NO EXPRESS OR
IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE DOW JONES
INDEXES/SM/ OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING,
IN NO EVENT SHALL DOW JONES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT,
PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE
POSSIBILITY THEREOF.

-7-
<PAGE>

STATEMENT OF DIFFERENCES BETWEEN ELECTRONIC FILING AND PRINTED DOCUMENT.

Pursuant to Rule 499(c) (7) under the Securities Act of 1933, Registrant
hereby identifies those differences in the foregoing document between the
electronic format in which it is filed and the printed form in which it will be
circulated:

(1) The printed and distributed prospectus may be paged differently because
the printed document may contain a different amount of information on each page
from that contained in the electronic transmission.

(2) In the printed document, footnote symbols may include a "dagger" or
multiple "dagger". The "dagger" symbol is represented as # in the electronic
document.

(3) The printed and distributed prospectus will not contain the preliminary
prospectus legend included at the beginning of the first prospectus page.
<PAGE>

Contents of Registration Statement

A. Bonding Arrangements of Depositor:

The Depositor has obtained the following Stockbrokers Blanket Bonds
for its officers, directors and employees:

Insurer/Policy No. Amount

Reliance Insurance Company
B 262 6895 $26,000,000

B. This Amendment to the Registration Statement comprises the following papers
and documents.

The facing sheet

The Prospectus

The signatures

Consents of Counsel

The following exhibits:

1.1(a) Copy of Standard Terms and Conditions of Trust for Nuveen Unit Trusts,
Series 4 and certain subsequent series, effective May 29, 1997 between
John Nuveen & Co. Incorporated, Depositor and The Chase Manhattan Bank,
Trustee and Evaluator (incorporated by reference to Amendment No. 1 to
Form S-6 [File No. 333-25225] filed on behalf of Nuveen Unit Trusts,
Series 4).

1.1(b) Trust Indenture and Agreement (to be supplied by amendment).

1.2* Copy of Certificate of Incorporation, as amended, of John Nuveen & Co.
Incorporated, Depositor.

1.3** Copy of amendment of Certificate of Incorporation changing name of
Depositor to John Nuveen & Co. Incorporated.

2.1 Copy of Certificate of Ownership (Included in Exhibit 1.1(a), and
incorporated herein by reference).

3.1 Opinion of counsel as to legality of securities being registered (to be
supplied by amendment).

- ---------------
/*/ Incorporated by reference to Form N-8B-2 (File No. 811-1547) filed on
behalf of Nuveen Tax-Free Unit Trust, Series 16.

/**/ Incorporated by reference to Form N-8B-2 (File No. 811-2198) filed on
behalf of Nuveen Tax-Free Unit Trust, Series 37.

S-1
<PAGE>

3.2 Opinion of counsel as to Federal income tax status of securities being
registered (to be supplied by amendment).

3.3 Opinion of counsel as to New York income tax status of securities being
registered (to be supplied by amendment).

3.4 Opinion of counsel as to advancement of funds by Trustee (to be supplied
by amendment).

4.2 Consent of The Chase Manhattan Bank (to be supplied by amendment).

4.4 Consent of Arthur Andersen LLP (to be supplied by amendment).

6.1 List of Directors and Officers of Depositor and other related information
(incorporated by reference to Exhibit E to Form N-8B-2 [File No. 811-
08103] filed on March 20, 1997 on behalf of Nuveen Unit Trusts, Series 1
and subsequent Series).

C. Explanatory Note

This Amendment to the Registration Statement may contain multiple separate
prospectuses. Each prospectus will relate to an individual unit investment trust
and will consist of a Part A, a part B and an Information Supplement.

D. Undertakings

1. With the exception of the information included in the appendices to
the Information Supplement, which will vary depending upon the make-up of a Fund
or updated to reflect current events, any amendment to a Fund's Information
Supplement will be subject to the review of the staff of the Securities and
Exchange Commission prior to distribution; and

2. The Information Supplement to the Trusts will not include third party
financial information.

S-2
<PAGE>

Signatures
----------

Pursuant to the requirements of the Securities Act of 1933, the Registrant,
Nuveen Unit Trusts, Series 18 has duly caused this Amendment No. 1 to the
Registration Statement to be signed on its behalf by the undersigned thereunto
duly authorized in the City of Chicago and State of Illinois on the 16th day of
September, 1998.

NUVEEN UNIT TRUSTS, SERIES 18
(Registrant)

By JOHN NUVEEN & CO. INCORPORATED
(Depositor)

By /s/ H. William Stabenow
-----------------------------------
Vice President

Attest /s/ Karen L. Healy
-------------------------------
Assistant Secretary

S-3
<PAGE>

Pursuant to the requirements of the Securities Act of 1933, this Amendment
to the Registration Statement has been signed below by the following persons in
the capacities and on the date indicated:

<TABLE>
<CAPTION>
Signature Title Date
--------- ----- -----------------
<S> <C> <C>
Timothy R. Schwertfeger Chairman, Board of Directors )
Chief Executive Officer )
and Director )
)
Anthony T. Dean President, Chief Operating )
Officer and Director )
)
John P. Amboian Chief Financial Officer and ) /s/Larry W. Martin
Executive Vice President ) Larry W. Martin
) Attorney-in-Fact**
Margaret E. Wilson Vice President and )
Controller ) September 16, 1998
)
</TABLE>
- ----

* The titles of the persons named herein represent their capacity in and
relationship to John Nuveen & Co. Incorporated, the Depositor.

**The powers of attorney for Messrs. Amboian, Dean and Schwertfeger were filed
as Exhibit 6 to Form N-8B-2 (File No. 811-08103) and for Ms. Wilson as Exhibit
6.2 to Nuveen Unit Trusts, Series 12 (File No. 333-49197).

S-4

<PAGE>

Consent of Independent Public Accountants

The consent of Arthur Andersen LLP to the use of its report and to the reference
to such firm in the Prospectus included in this Amendment to the Registration
Statement will be filed as Exhibit 4.4 to the Registration Statement.

Consent of Chapman and Cutler

The consent of Chapman and Cutler to the use of its name in the Prospectus
included in the Amendment to the Registration Statement will be contained in its
opinions to be filed as Exhibits 3.1 and 3.2 to the Registration Statement.

Consent of The Chase Manhattan Bank

The consent of The Chase Manhattan Bank to the use of its name in the Prospectus
included in the Amendment to the Registration Statement will be filed as Exhibit
4.2 to the Registration Statement.

Consent of Carter, Ledyard & Milburn

The consent of Carter, Ledyard & Milburn to the use of its name in the
Prospectus included in the Amendment to the Registration Statement will be filed
as Exhibit 3.3 to the Registration Statement.

S-5