Registration No. 333-48255
1940 Act No. 811-05903
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Amendment No. 2 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:
FT 250
B. Name of depositor:
NIKE SECURITIES L.P.
C. Complete address of depositor's principal executive offices:
1001 Warrenville Road
Lisle, Illinois 60532
D. Name and complete address of agents for service:
Copy to:
JAMES A. BOWEN ERIC F. FESS
c/o Nike Securities L.P. c/o Chapman and Cutler
1001 Warrenville Road 111 West Monroe Street
Lisle, Illinois 60532 Chicago, Illinois 60603
E. Title of Securities Being Registered:
An indefinite number of Units pursuant to Rule 24f-2
promulgated under the Investment Company Act of 1940, as
amended
F. Approximate date of proposed sale to public:
As soon as practicable after the effective date of the
Registration Statement.
|XXX|Check box if it is proposed that this filing will become
effective on April 15, 1998 at 2:00 p.m. pursuant to Rule
487.
________________________________
FT 250
Cross-Reference Sheet
(Form N-8B-2 Items required by Instructions as
to the Prospectus in Form S-6)
Form N-8B-2 Item Number Form S-6 Heading in Prospectus
I. ORGANIZATION AND GENERAL INFORMATION
1. (a) Name of trust Prospectus front cover
(b) Title of securities issued Summary of Essential
Information
2. Name and address of each depositor Information as to
Sponsor, Trustee and
Evaluator
3. Name and address of trustee Information as to
Sponsor, Trustee and
Evaluator
4. Name and address of principal Information as to
underwriters Sponsor, Trustee and
Evaluator
5. State of organization of trust The FT Series
6. Execution and termination of Other Information
trust agreement
7. Changes of name *
8. Fiscal year *
9. Litigation *
II. GENERAL DESCRIPTION OF THE TRUST AND SECURITIES OF THE TRUST
10. (a) Registered or bearer Public Offering
securities
(b) Cumulative or distributive The FT Series
securities
(c) Redemption Rights of Unitholders
(d) Conversion, transfer, etc. Rights of Unitholders
(e) Periodic payment plan *
(f) Voting rights Rights of Unitholders
(g) Notice of certificateholders Other Information
(h) Consents required Rights of Unitholders;
Other Information
(i) Other provisions The FT Series
11. Types of securities comprising The FT Series
units Schedule of
Investments
12. Certain information regarding
periodic payment certificates *
13. (a) Load, fees, expenses, etc. Summary of Essential
Information; Public
Offering; The FT
Series
(b) Certain information regarding
periodic payment certificates *
(c) Certain percentages Summary of Essential
Information; The FT
Series; Public
Offering
(d) Certain other fees, etc.
payable by holders Rights of Units
Holders
(e) Certain profits receivable
by depositor, principal,
underwriters, trustee or The FT Series
affiliated persons
(f) Ratio of annual charges *
to income
14. Issuance of trust's securities Rights of Unit Holders
15. Receipt and handling of payments
from purchasers *
16. Acquisition and disposition of
underlying securities The FT Series; Rights
of Unit Holders;
17. Withdrawal or redemption The FT Series; Public
Offering; Rights of
Unit Holders
18. (a) Receipt, custody and Rights of Unit Holders
disposition of income
(b) Reinvestment of distributions Rights of Unit Holders
(c) Reserves or special funds Information as to
Sponsor, Trustee and
Evaluator
(d) Schedule of distributions *
19. Records, accounts and reports Rights of Unit Holders
20. Certain miscellaneous provisions
of trust agreement
(a) Amendment Other Information
(b) Termination Other Information
(c) and (d) Trustee, removal Information as
and successor to Sponsor, Trustee
and Evaluator
(e) and (f) Depositor, removal Information as
and successor to Sponsor, Trustee
and Evaluator
21. Loans to security holders *
22. Limitations on liability The FT Series;
Information as to
Sponsor, Trustee
and Evaluator
23. Bonding arrangements Contents of
Registration
Statement
24. Other material provisions *
of trust agreement
III. ORGANIZATION, PERSONNEL AND AFFILIATED PERSONS OF DEPOSITOR
25. Organization of depositor Information as to
Sponsor, Trustee and
Evaluator
26. Fees received by depositor *
27. Business of depositor Information as to
Sponsor, Trustee and
Evaluator
28. Certain information as to
officials and affiliated *
persons of depositor
29. Voting securities of depositor *
30. Persons controlling depositor *
31. Payment by depositor for certain
services rendered to trust *
32. Payment 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
35. Distribution of trust's Public Offering
securities by states
36. Suspension of sales of trust's
securities *
37. Revocation of authority to *
distribute
38. (a) Method of distribution Public Offering
(b) Underwriting agreements Public Offering
(c) Selling agreements Public Offering
39. (a) Organization of principal Information as
underwriters to Sponsor, Trustee
and Evaluator
(b) N.A.S.D. membership of
principal underwriters Information as to
Sponsor, Trustee and
Evaluator
40. Certain fees received by See Items 13(a) and
principal underwriters 13(e)
41. (a) Business of principal Information as to
underwriters Sponsor, Trustee and
Evaluator
(b) Branch offices of
principal underwriters *
(c) Salesmen of principal *
underwriters
42. Ownership of trust's securities
by certain persons *
43. Certain brokerage commissions
received by principal *
underwriters
44. (a) Method of valuation Summary of Essential
Information; The FT
Series, Public
Offering
(b) Schedule as to offering *
price
(c) Variation in offering Public Offering
price to certain persons
45. Suspension of redemption rights *
46. (a) Redemption valuation Rights of Unit Holders
(b) Schedule as to redemption *
price
47. Maintenance of position in Public Offering;
underlying securities Rights
of Unit Holders
V. INFORMATION CONCERNING THE TRUSTEE OR CUSTODIAN
48. Organization and regulation of Information as
trustee to Sponsor, Trustee
and Evaluator
49. Fees and expenses of trustee The FT Series
50. Trustee's lien The FT Series
VI. INFORMATION CONCERNING THE INSURANCE OF HOLDERS OF
SECURITIES
51. Insurance of holders of
trust's securities *
VII. POLICY OF REGISTRANT
52. (a) Provisions of trust The FT Series;
agreement with respect to Rights of Unit Holders
selection or elimination of
underlying securities
(b) Transactions involving
elimination of underlying *
securities
(c) Policy regarding substitution The FT Series;
or elimination of underlying Rights of Unit Holders
securities
(d) Fundamental policy not
otherwise covered *
53. Tax status of Trust The FT Series
VIII. FINANCIAL AND STATISTICAL INFORMATION
54. Trust's securities during *
last ten years
55.
56.
57. Certain information regarding
periodic payment certificates *
58.
59. Financial statements Report of Independent
(Instruction 1(c) to Form S-6) Auditors
Statement of Net
Assets
* Inapplicable, answer negative or not required.
First Trust (registered trademark)
Communications Growth Trust, Series 2
Fundamental Value Trust Series
Insurance Growth Trust Series
Internet Growth Trust, Series 4
Media & Entertainment Growth Trust, Series 2
Medical Growth Trust Series
The Trusts. FT 250 consists of the underlying separate unit investment
trusts set forth above. The various trusts are sometimes collectively
referred to herein as the "Trusts" and individually as a "Trust."
The objective of each Trust is to provide for potential capital
appreciation by investing the Trust's portfolio in common stocks (the
"Equity Securities") of companies represented by each Trust's specific
sector or investment focus. See "Schedule of Investments" for each Trust.
Each Trust has a mandatory termination date ("Mandatory Termination
Date" or "Trust Ending Date") as set forth under "Summary of Essential
Information" for each Trust. There is, of course, no guarantee that the
objective of the Trusts will be achieved.
Each Unit of a Trust represents an undivided fractional interest in all
the Equity Securities deposited in such Trust. The Equity Securities
deposited in each Trust's portfolio have no fixed maturity date and the
value of these underlying Equity Securities will fluctuate with changes
in the values of stocks in general. See "Portfolio."
The Sponsor may, from time to time during a period of up to
approximately 360 days after the Initial Date of Deposit, deposit
additional Equity Securities or cash (including a letter of credit) with
instructions to purchase additional Equity Securities in the Trusts.
Such deposits of additional Equity Securities will be done in such a
manner that the original proportionate relationship amongst the
individual issues of the Equity Securities in each Trust shall be
maintained. Any deposit by the Sponsor of additional Equity Securities,
or the purchase of additional Equity Securities pursuant to a cash
deposit, will duplicate, as nearly as is practicable, the original
proportionate relationship established on the Initial Date of Deposit,
and not the actual proportionate relationship on the subsequent date of
deposit, since the two may differ. Any such difference may be due to the
sale, redemption or liquidation of any Equity Securities deposited in
the Trusts on the Initial, or any subsequent, Date of Deposit. See "What
is the FT Series?" and "Rights of Unit Holders-How May Equity Securities
be Removed from a Trust?"
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.
FIRST TRUST (registered trademark)
1-800-621-9533
The date of this Prospectus is April 15, 1998
Page 1
Public Offering Price. The Public Offering Price per Unit of each Trust
during the initial offering period is equal to the aggregate underlying
value of the Equity Securities in such Trust (generally determined by
the closing sale prices of listed Equity Securities and the ask prices
of over-the-counter traded Equity Securities) plus or minus a pro rata
share of cash, if any, in the Capital and Income Accounts of such
Trust, plus an initial sales charge equal to the difference between the
maximum sales charge of 4.5% of the Public Offering Price and the
maximum remaining deferred sales charge, initially $.35 per Unit.
Commencing on November 20, 1998, and on the twentieth day of each month
thereafter (or if such date is not a business day, on the preceding
business day) through March 19, 1999, a deferred sales charge of $.07
will be assessed per Unit per month. Units purchased subsequent to the
initial deferred sales charge payment but still during the initial
offering period will be subject to the initial sales charge and the
remaining deferred sales charge payments not yet collected. The deferred
sales charge will be paid from funds in the Income and/or Capital
Accounts, if sufficient, or from the periodic sale of Equity Securities.
The total maximum sales charge assessed to Unit holders on a per Unit
basis will be 4.5% of the Public Offering Price (equivalent to 4.545% of
the net amount invested, exclusive of the deferred sales charge).
A pro rata share of accumulated dividends, if any, in the Income Account
of a Trust is included in the Public Offering Price. Upon completion of
the deferred sales charge period, the secondary market Public Offering
Price per Unit for a Trust will not include deferred payments, but will
instead include only a one-time initial sales charge of 4.5% of the Public
Offering Price (equivalent to 4.712% of the net amount invested), which
will be reduced by 1/2 of 1% on each April 30, commencing April 30, 1999
to a minimum sales charge of 3.0%. The minimum amount which an investor may
purchase of a Trust is $1,000 ($500 for Individual Retirement Accounts
or other retirement plans). The sales charge of a Trust is reduced on a
graduated scale for sales involving at least $50,000. See "Public
Offering-How is the Public Offering Price Determined?"
UNITS OF THE TRUSTS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY BANK, AND UNITS ARE NOT FEDERALLY INSURED OR OTHERWISE PROTECTED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION AND INVOLVE INVESTMENT RISK
INCLUDING LOSS OF PRINCIPAL.
Dividend and Capital Distributions. Distributions of dividends and
capital, if any, received by a Trust, net of expenses of such Trust,
will be paid on the Distribution Date to Unit holders of record on the
Record Date as set forth in the "Summary of Essential Information" for
each Trust. Distributions of funds in the Capital Account, if any, will
be made at least annually in December of each year. Any distribution of
income and/or capital will be net of the expenses of the respective
Trust. See "What is the Federal Tax Status of Unit Holders?"
Additionally, upon termination of the Trusts, the Trustee will
distribute, upon surrender of Units for redemption, to each Unit holder
his pro rata share of a Trust's assets, less expenses, in the manner set
forth under "Rights of Unit Holders-How are Income and Capital
Distributed?"
Secondary Market for Units. After the initial offering period, while
under no obligation to do so, the Sponsor intends to maintain a market
for Units of the Trusts and offer to repurchase such Units at prices
which are based on the aggregate underlying value of Equity Securities
in such Trusts (generally determined by the closing sale prices of
listed Equity Securities and the bid prices of over-the-counter traded
Equity Securities) plus or minus cash, if any, in the Capital and Income
Accounts of such Trusts. If a secondary market is maintained during the
initial offering period, the prices at which Units will be repurchased
will also be based upon the aggregate underlying value of the Equity
Securities in the Trusts (generally determined by the closing sale
prices of listed Equity Securities and the ask prices of over-the-
counter traded Equity Securities) plus or minus cash, if any, in the
Capital and Income Accounts of such Trusts. If a secondary market is not
maintained, a Unit holder may redeem Units through redemption at prices
based upon the aggregate underlying value of the Equity Securities in a
Trust (generally determined by the closing sale prices of listed Equity
Securities and either the ask prices (during the initial offering
period) or the bid prices (subsequent to the initial offering period) of
over-the-counter traded Equity Securities) plus or minus a pro rata
share of cash, if any, in the Capital and Income Accounts of a Trust. A
Unit holder tendering 2,500 Units or more of a Trust for redemption may
request a distribution of shares of Equity Securities (reduced by
customary transfer and registration charges) (an "In-Kind Distribution")
in lieu of payment in cash. See "Rights of Unit Holders-How May Units be
Redeemed?" Any deferred sales charge remaining on Units at the time of
their sale or redemption will be collected at that time. See "Rights of
Unit Holders-How May Units be Redeemed?"
Page 2
Termination. Commencing no later than the Mandatory Termination Date,
Equity Securities will begin to be sold as prescribed by the Sponsor.
The Trustee will provide written notice of any termination of the Trusts
to Unit holders which will specify when Unit holders may surrender their
certificates for cancellation and will include with such notice a form
to enable Unit holders to elect an In-Kind Distribution if such Unit
holder owns at least 2,500 Units of a Trust, rather than to receive
payment in cash for such Unit holder's pro rata share of the amounts
realized upon the disposition by the Trustee of Equity Securities. To be
effective, the election form, together with surrendered certificates and
other documentation required by the Trustee, must be returned to the
Trustee at least ten business days prior to the Mandatory Termination
Date. Unit holders not electing a distribution of shares of Equity
Securities will receive a cash distribution within a reasonable time
after a Trust is terminated. See "Rights of Unit Holders-How are Income
and Capital Distributed?" and "Other Information-How May the Indenture
be Amended or Terminated?"
Risk Factors. An investment in a Trust should be made with an
understanding of the risks associated therewith, including, among other
factors, the possible deterioration of either the financial condition of
the issuers of the Equity Securities or the general condition of the
stock market, changes in interest rates and economic recession.
Volatility in the market price of the Equity Securities in a Trust also
changes the value of the Units of the Trusts. Unit holders tendering
Units for redemption during periods of market volatility may receive
redemption proceeds which are more or less than they paid for the Units.
The Trusts' portfolios are not managed and Equity Securities will not be
sold by the Trusts regardless of market fluctuations, although certain
Equity Securities may be sold under certain limited circumstances. For
further information concerning these risk factors as well as a
discussion of additional risks specific to each Trust, see "What are the
Equity Securities?-Risk Factors."
Page 3
Summary of Essential Information
At the Opening of Business on the Initial Date of Deposit
of the Equity Securities-April 15, 1998
Sponsor: Nike Securities L.P.
Trustee: The Chase Manhattan Bank
Evaluator: First Trust Advisors L.P.
<TABLE>
<CAPTION>
Communications Fundamental Insurance
Growth Trust Value Growth Trust
Series 2 Trust Series Series
____________ _____________ ____________
<S> <C> <C> <C>
General Information
Initial Number of Units (1) 15,023 15,013 15,041
Fractional Undivided Interest in the Trust per Unit (1) 1/15,023 1/15,013 1/15,041
Public Offering Price:
Aggregate Offering Price Evaluation of Equity Securities in Portfolio (2)$ 148,725 $ 148,633 $ 148,906
Aggregate Offering Price Evaluation of Equity Securities per Unit $ 9.900 $ 9.900 $ 9.900
Maximum Sales Charge of 4.5% of the Public Offering Price
per Unit (4.545% of the net amount invested, exclusive
of the deferred sales charge) (3) $ .450 $ .450 $ .450
Less Deferred Sales Charge per Unit $ (.350) $ (.350) $ (.350)
Public Offering Price per Unit (3) $ 10.000 $ 10.000 $ 10.000
Sponsor's Initial Repurchase Price per Unit $ 9.550 $ 9.550 $ 9.550
Redemption Price per Unit (based on aggregate underlying
value of Equity Securities less deferred sales charge) (4) $ 9.550 $ 9.550 $ 9.550
CUSIP Number 30264Q 100 30264Q 159 30264Q 118
Security Code 55334 55337 55338
Trustee's Annual Fee per Unit outstanding $ .0096 $ .0096 $ .0096
Evaluator's Annual Fee per Unit outstanding (5) $ .0030 $ .0030 $ .0030
Maximum Supervisory Fee per Unit outstanding (6) $ .0035 $ .0035 $ .0035
Estimated Annual Amortization of Organizational and
Offering Costs per Unit outstanding (7) $ .0045 $ .0045 $ .0045
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
First Settlement Date April 20, 1998
Mandatory Termination Date April 15, 2003
Discretionary Liquidation Amount A Trust may be terminated if the value thereof is less than the lower of
$2,000,000 or 20% of the total value of Equity Securities deposited in such
Trust during the initial offering period.
Income Distribution Record Date Fifteenth day of each June and December commencing June 15, 1998.
Income Distribution Date (8) Last day of each June and December commencing June 30, 1998.
_____________
<FN>
(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. Therefore, to the extent
of any such adjustment, the fractional undivided interest per Unit will
increase or decrease accordingly, from the amounts indicated above.
(2) Each listed Equity Security is valued at the last closing sale price,
or if no such price exists or if the Equity Security is not so listed,
at the closing ask price thereof.
(3) The maximum sales charge consists of an initial sales charge and a
deferred sales charge. See "Fee Table" and "Public Offering" for
additional information regarding these charges. On the Initial Date of
Deposit there will be no accumulated dividends 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 Equity 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 Equity
Securities will be deposited during the day of the Initial Date of
Deposit which will be valued as of 4:00 p.m. Eastern time and sold to
investors at a Public Offering Price per Unit based on this valuation.
(4) See "Rights of Unit Holders-How May Units be Redeemed?"
(5) The Evaluator's Fee is payable to an affiliate of the Sponsor.
Evaluations for purposes of sale, purchase or redemption of Units are
made as of the close of trading (generally 4:00 p.m. Eastern time) on
the New York Stock Exchange on each day on which it is open.
(6) The Supervisory Fee is payable to an affiliate of the Sponsor. In
addition, the Sponsor will be reimbursed for bookkeeping and other
administrative expenses currently at a maximum annual rate of $.0028 per
Unit per Trust.
(7) Each Trust (and therefore Unit holders) will bear all or a portion of
its organizational and offering costs (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 the Trust portfolio, legal fees and the
initial fees and expenses of the Trustee but not including the expenses
incurred in the printing of preliminary and final prospectuses, and
expenses incurred in the preparation and printing of brochures and other
advertising materials and any other selling expenses) as is common for
mutual funds. Total organizational and offering expenses will be charged
off over a period not to exceed the life of the Trust (approximately
five years). See "What are the Expenses and Charges?" and "Statements of
Net Assets." Historically, the sponsors of unit investment trusts have
paid all the costs of establishing such trusts.
(8) Distributions from the Capital Account will be made monthly payable
on the last day of the month to Unit holders of record on the fifteenth
day of such month if the amount available for distribution equals at
least $1.00 per 100 Units. Notwithstanding, distributions of funds in
the Capital Account, if any, will be made in December of each year.
</FN>
</TABLE>
Page 4
Summary of Essential Information
At the Opening of Business on the Initial Date of Deposit
of the Equity Securities-April 15, 1998
Sponsor: Nike Securities L.P.
Trustee: The Chase Manhattan Bank
Evaluator: First Trust Advisors L.P.
<TABLE>
<CAPTION>
Media
Internet & Entertainment Medical
Growth Trust Growth Trust Growth
Series 4 Series 2 Trust Series
____________ _______________ _____________
<S> <C> <C> <C>
General Information
Initial Number of Units (1) 14,981 15,010 15,041
Fractional Undivided Interest in the Trust per Unit (1) 1/14,981 1/15,010 1/15,041
Public Offering Price:
Aggregate Offering Price Evaluation of Equity Securities in Portfolio (2) $ 148,311 $ 148,604 $ 148,906
Aggregate Offering Price Evaluation of Equity Securities per Unit $ 9.900 $ 9.900 $ 9.900
Maximum Sales Charge of 4.5% of the Public Offering Price per Unit
(4.545% of the net amount invested, exclusive of the
deferred sales charge) (3) $ .450 $ .450 $ .450
Less Deferred Sales Charge per Unit $ (.350) $ (.350) $ (.350)
Public Offering Price per Unit (3) $ 10.000 $ 10.000 $ 10.000
Sponsor's Initial Repurchase Price per Unit $ 9.550 $ 9.550 $ 9.550
Redemption Price per Unit (based on aggregate underlying
value of Equity Securities less deferred sales charge) (4) $ 9.550 $ 9.550 $ 9.550
CUSIP Number 30264Q 126 30264Q 134 30264Q 142
Security Code 55333 55336 55335
Trustee's Annual Fee per Unit outstanding $ .0096 $ .0096 $ .0096
Evaluator's Annual Fee per Unit outstanding (5) $ .0030 $ .0030 $ .0030
Maximum Supervisory Fee per Unit outstanding (6) $ .0035 $ .0035 $ .0035
Estimated Annual Amortization of Organizational
and Offering Costs per Unit outstanding (7) $ .0045 $ .0045 $ .0045
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
First Settlement Date April 20, 1998
Mandatory Termination Date April 15, 2003
Discretionary Liquidation Amount A Trust may be terminated if the value thereof is less than the lower of
$2,000,000 or 20% of the total value of Equity Securities deposited in such
Trust during the initial offering period.
Income Distribution Record Date Fifteenth day of each June and December commencing June 15, 1998.
Income Distribution Date (8) Last day of each June and December commencing June 30, 1998.
______________
<FN>
(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. Therefore, to the extent
of any such adjustment, the fractional undivided interest per Unit will
increase or decrease accordingly, from the amounts indicated above.
(2) Each listed Equity Security is valued at the last closing sale price,
or if no such price exists or if the Equity Security is not so listed,
at the closing ask price thereof.
(3) The maximum sales charge consists of an initial sales charge and a
deferred sales charge. See "Fee Table" and "Public Offering" for
additional information regarding these charges. On the Initial Date of
Deposit there will be no accumulated dividends 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 Equity 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 Equity
Securities will be deposited during the day of the Initial Date of
Deposit which will be valued as of 4:00 p.m. Eastern time and sold to
investors at a Public Offering Price per Unit based on this valuation.
(4) See "Rights of Unit Holders-How May Units be Redeemed?"
(5) The Evaluator's Fee is payable to an affiliate of the Sponsor.
Evaluations for purposes of sale, purchase or redemption of Units are
made as of the close of trading (generally 4:00 p.m. Eastern time) on
the New York Stock Exchange on each day on which it is open.
(6) The Supervisory Fee is payable to an affiliate of the Sponsor. In
addition, the Sponsor will be reimbursed for bookkeeping and other
administrative expenses currently at a maximum annual rate of $.0028 per
Unit per Trust.
(7) Each Trust (and therefore Unit holders) will bear all or a portion of
its organizational and offering costs (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 the Trust portfolio, legal fees and the
initial fees and expenses of the Trustee but not including the expenses
incurred in the printing of preliminary and final prospectuses, and
expenses incurred in the preparation and printing of brochures and other
advertising materials and any other selling expenses) as is common for
mutual funds. Total organizational and offering expenses will be charged
off over a period not to exceed the life of the Trust (approximately
five years). See "What are the Expenses and Charges?" and "Statements of
Net Assets." Historically, the sponsors of unit investment trusts have
paid all the costs of establishing such trusts.
(8) Distributions from the Capital Account will be made monthly payable
on the last day of the month to Unit holders of record on the fifteenth
day of such month if the amount available for distribution equals at
least $1.00 per 100 Units. Notwithstanding, distributions of funds in
the Capital Account, if any, will be made in December of each year.
</FN>
</TABLE>
Page 5
FEE TABLES
These Fee Tables are intended to help you to understand the costs and
expenses that you will bear directly or indirectly. See "Public
Offering" and "What are the Expenses and Charges?" Although the Trusts
have a term of approximately five years and are unit investment trusts
rather than mutual funds, this information is presented to permit a
comparison of fees.
<TABLE>
<CAPTION>
Communications Growth Trust, Series 2
Amount
per Unit
________
<S> <C> <C>
Unit Holder Transaction Expenses
Initial sales charge imposed on purchase
(as a percentage of public offering price) 1.00%(a) $ .100
Deferred sales charge
(as a percentage of public offering price) 3.50%(b) .350
________ ________
4.50% $ .450
======== ========
Estimated Annual Fund Operating Expenses
(as a percentage of average net assets)
Trustee's fee .098% $.0096
Portfolio supervision, bookkeeping, administrative, amortization of
organizational and offering expenses and evaluation fees .141% .0138
Other operating expenses .055% .0054
________ ________
Total .294% $.0288
======== ========
</TABLE>
<TABLE>
<CAPTION>
Example
_______
Cumulative Expenses Paid for Period:
1 Year 3 Years 5 Years
______ _______ _______
<S> <C> <C> <C>
An investor would pay the following expenses on a $1,000 investment,
assuming the Communications Growth Trust, Series 2 has an estimated
operating expense ratio of .294% and a 5% annual return on the investment
throughout the periods $ 48 $ 54 $ 61
</TABLE>
<TABLE>
<CAPTION>
Fundamental Value Trust Series
Amount
per Unit
________
<S> <C> <C>
Unit Holder Transaction Expenses
Initial sales charge imposed on purchase
(as a percentage of public offering price) 1.00%(a) $ .100
Deferred sales charge
(as a percentage of public offering price) 3.50%(b) .350
________ ________
4.50% $ .450
======== ========
Estimated Annual Fund Operating Expenses
(as a percentage of average net assets)
Trustee's fee .098% $.0096
Portfolio supervision, bookkeeping, administrative, amortization of
organizational and offering expenses and evaluation fees .141% .0138
Other operating expenses .055% .0054
________ ________
Total .294% $.0288
======== ========
</TABLE>
Page 6
<TABLE>
<CAPTION>
Example
_______
Cumulative Expenses Paid for Period:
1 Year 3 Years 5 Years
______ _______ _______
<S> <C> <C> <C>
An investor would pay the following expenses on a $1,000 investment,
assuming the Fundamental Value Trust Series has an estimated operating
expense ratio of .294% and a 5% annual return on the investment throughout
the periods $ 48 $ 54 $ 61
</TABLE>
<TABLE>
<CAPTION>
Insurance Growth Trust Series
Amount
per Unit
________
<S> <C> <C>
Unit Holder Transaction Expenses
Initial sales charge imposed on purchase
(as a percentage of public offering price) 1.00%(a) $ .100
Deferred sales charge
(as a percentage of public offering price) 3.50%(b) .350
________ ________
4.50% $ .450
======== ========
Estimated Annual Fund Operating Expenses
(as a percentage of average net assets)
Trustee's fee .098% $.0096
Portfolio supervision, bookkeeping, administrative, amortization of
organizational and offering expenses and evaluation fees .141% .0138
Other operating expenses .055% .0054
________ ________
Total .294% $.0288
======== ========
</TABLE>
<TABLE>
<CAPTION>
Example
_______
Cumulative Expenses Paid for Period:
1 Year 3 Years 5 Years
______ _______ _______
<S> <C> <C> <C>
An investor would pay the following expenses on a $1,000 investment,
assuming the Insurance Growth Trust Series has an estimated operating
expense ratio of .294% and a 5% annual return on the investment throughout
the periods $ 48 $ 54 $ 61
</TABLE>
<TABLE>
<CAPTION>
Internet Growth Trust, Series 4
Amount
per Unit
________
<S> <C> <C>
Unit Holder Transaction Expenses
Initial sales charge imposed on purchase
(as a percentage of public offering price) 1.00%(a) $ .100
Deferred sales charge
(as a percentage of public offering price) 3.50%(b) .350
________ ________
4.50% $ .450
======== ========
Estimated Annual Fund Operating Expenses
(as a percentage of average net assets)
Trustee's fee .098% $.0096
Portfolio supervision, bookkeeping, administrative, amortization of
organizational and offering expenses and evaluation fees .141% .0138
Other operating expenses .055% .0054
________ ________
Total .294% $.0288
======== ========
</TABLE>
Page 7
<TABLE>
<CAPTION>
Example
_______
Cumulative Expenses Paid for Period:
1 Year 3 Years 5 Years
______ _______ _______
<S> <C> <C> <C>
An investor would pay the following expenses on a $1,000 investment,
assuming the Internet Growth Trust, Series 4 has an estimated operating
expense ratio of .294% and a 5% annual return on the investment throughout
the periods $ 48 $ 54 $ 61
</TABLE>
<TABLE>
<CAPTION>
Media & Entertainment Growth Trust, Series 2
Amount
per Unit
________
<S> <C> <C>
Unit Holder Transaction Expenses
Initial sales charge imposed on purchase
(as a percentage of public offering price) 1.00%(a) $ .100
Deferred sales charge
(as a percentage of public offering price) 3.50%(b) .350
________ ________
4.50% $ .450
======== ========
Estimated Annual Fund Operating Expenses
(as a percentage of average net assets)
Trustee's fee .098% $.0096
Portfolio supervision, bookkeeping, administrative, amortization of
organizational and offering expenses and evaluation fees .141% .0138
Other operating expenses .055% .0054
________ ________
Total .294% $.0288
======== ========
</TABLE>
<TABLE>
<CAPTION>
Example
_______
Cumulative Expenses Paid for Period:
1 Year 3 Years 5 Years
______ _______ _______
<S> <C> <C> <C>
An investor would pay the following expenses on a $1,000 investment,
assuming the Media & Entertainment Growth Trust, Series 2 has an estimated
operating expense ratio of .294% and a 5% annual return on the investment
throughout the periods $ 48 $ 54 $ 61
</TABLE>
<TABLE>
<CAPTION>
Medical Growth Trust Series
Amount
per Unit
________
<S> <C> <C>
Unit Holder Transaction Expenses
Initial sales charge imposed on purchase
(as a percentage of public offering price) 1.00%(a) $ .100
Deferred sales charge
(as a percentage of public offering price) 3.50%(b) .350
________ ________
4.50% $ .450
======== ========
Estimated Annual Fund Operating Expenses
(as a percentage of average net assets)
Trustee's fee .098% $.0096
Portfolio supervision, bookkeeping, administrative, amortization of
organizational and offering expenses and evaluation fees .141% .0138
Other operating expenses .055% .0054
________ ________
Total .294% $.0288
======== ========
</TABLE>
Page 8
<TABLE>
<CAPTION>
Example
_______
Cumulative Expenses Paid for Period:
1 Year 3 Years 5 Years
______ _______ _______
<S> <C> <C> <C>
An investor would pay the following expenses on a $1,000 investment,
assuming the Medical Growth Trust Series has an estimated operating expense
ratio of .294% and a 5% annual return on the investment throughout the
periods $ 48 $ 54 $ 61
______________
<FN>
(a) The Initial Sales Charge is actually the difference between the
maximum total sales charge of 4.5% and the maximum remaining deferred
sales charge (initially $.35 per Unit) and would exceed 1.0% if the
Public Offering Price exceeds $10.00 per Unit.
(b) The actual fee is $.07 per month per Unit, irrespective of purchase
or redemption price deducted monthly commencing November 20, 1998
through March 19, 1999. If a Unit holder 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 Unit price exceeds $10.00 per Unit, the
deferred sales charge will be less than 3.5%. Units purchased subsequent
to the initial deferred sales charge payment will also be subject to the
remaining deferred sales charge payments not yet collected.
</FN>
</TABLE>
The examples assume reinvestment of all dividends and distributions and
utilize a 5% annual rate of return as mandated by Securities and
Exchange Commission regulations applicable to mutual funds. For purposes
of the examples, the deferred sales charge imposed on reinvestment of
dividends is not reflected until the year following payment of the
dividend; the cumulative expenses would be higher if sales charges on
reinvested dividends were reflected in the year of reinvestment. The
examples should not be considered a representation of past or future
expenses or annual rate of return; the actual expenses and annual rate
of return may be more or less than those assumed for purposes of the
examples.
Page 9
COMMUNICATIONS GROWTH TRUST, SERIES 2
FUNDAMENTAL VALUE TRUST SERIES
INSURANCE GROWTH TRUST SERIES
INTERNET GROWTH TRUST, SERIES 4
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
MEDICAL GROWTH TRUST SERIES
FT 250
What is the FT Series?
FT 250 is one of a series of investment companies created by the Sponsor
under the name of the FT Series, all of which are generally similar, but
each of which is separate and is designated by a different series
number. The FT Series was previously known as The First Trust Special
Situations Trust Series. This Series consists of the underlying separate
unit investment trusts set forth above. The Trusts were created under
the laws of the State of New York pursuant to a Trust Agreement (the
"Indenture"), dated the Initial Date of Deposit, with Nike Securities
L.P. as Sponsor, The Chase Manhattan Bank as Trustee, and First Trust
Advisers L.P. as Portfolio Supervisor and Evaluator.
On the Initial Date of Deposit, the Sponsor deposited with the Trustee
confirmations of contracts for the purchase of common stocks (the
"Equity Securities"), together with an irrevocable letter or letters of
credit of a financial institution in an amount at least equal to the
purchase price of such securities. In exchange for the deposit of
securities or contracts to purchase securities in the Trusts, the
Trustee delivered to the Sponsor documents evidencing the entire
ownership of the Trusts.
Communications Growth Trust, Series 2
The objective of the Communications Growth Trust (the "Communications
Growth Trust") is to provide investors with the potential for above-
average capital appreciation through an investment in a diversified
portfolio of common stocks of communications companies which the Sponsor
believes are positioned to take advantage of the convergence of many
types of communications around the world. The Communications Growth
Trust's portfolio is diversified across domestic and international
companies involved in computer networking, communications equipment,
communications services and wireless communications. A diversified
portfolio helps to offset the risks normally associated with such an
investment, although it does not eliminate them entirely. The companies
selected for the Communications Growth Trust have been researched and
evaluated using database screening techniques, fundamental analysis and
the judgment of the Sponsor's research analysts. In general, the Sponsor
believes these companies have above-average growth prospects for both
sales and earnings, established market shares for their services and
lower-than-average levels of debt.
In the Sponsor's opinion, the communications industry is expected to
benefit from the convergence of a variety of industries including
entertainment, media and publishing. Companies well-positioned within
the communications industry are poised for both increased revenue and
earnings growth potential over the next several years. The
Telecommunications Act of 1996 broke down many regulatory barriers in
the United States, making it possible for companies once precluded from
offering multiple communication services to now do so. Cable companies,
for instance, can now offer telephone services while telephone companies
can offer video services. Increased competition and opportunities will
arise as telephone companies are able to offer both long-distance and
local services. Governments worldwide are moving toward democracy and
economies based on market-oriented policies. As part of this process,
communications systems are shifting from government-owned monopolies to
publicly-owned market-based companies. This worldwide deregulation is
likely to accelerate global demand for communications services. Due to
the fast pace of technological advances, domestic and global demand for
communications services and equipment is increasing. Recent advances,
such as wireless phones, fiber optics and the Internet, are allowing
businesses, individuals and governments greater access to a variety of
communications services at lower costs. This increased access, in turn,
Page 10
is fueling the demand for products from manufacturers of communications
equipment and computer networks. In addition, future technological
advances will only serve to further reduce communications-related costs
and to stimulate demand.
See "Schedule of Investments" and "What are the Equity Securities?-Risk
Factors" for the Communications Growth Trust. There is, however, no
assurance that the objective of the Communications Growth Trust will be
achieved.
Fundamental Value Trust Series
The objective of the Fundamental Value Trust Series (the "Fundamental
Value Trust") is to provide for the potential for above-average capital
appreciation through an investment in a diversified portfolio of common
stocks of companies which the Sponsor believes represent excellent value
in the marketplace. A diversified portfolio helps to offset the risks
normally associated with such an investment, although it does not
eliminate them entirely. The companies selected for the Fundamental
Value Trust have been researched and evaluated using database screening
techniques, fundamental analysis and the judgment of the Sponsor's
research analysts. In general, the Sponsor believes these companies have
above-average growth prospects for both sales and earnings, established
market shares for their services and lower-than-average levels of debt.
The first step in the selection process is to identify the universe of
all potential stocks. The selected stocks must meet the investment
objective of the Trust and meet other criteria such as size and trading
volume.
Once the universe of stocks has been selected, the Sponsor concentrates
on those companies that have earned a net cash flow rate of return that
is above the average of their peers. Historically, companies that have
increased their cash flows at a higher rate have rewarded shareholders
with superior total returns.
In the final step, the Sponsor selects only those companies with
attractive valuations. Calculating the past performance of a company's
cash flow is only half of the equation. The other half is determining
the value of the company based on that information. An estimate of value
for a company is derived by discounting projected future cash flows of
the company. Only the companies whose shares, in the opinion of the Sponsor,
currently trade at an attractive market price to their discounted
cash flow have been selected.
The Sponsor's selection process attempts to find stocks with the best
prospects for capital appreciation by identifying stocks that meet the
Fundamental Value Trust's investment objectives, trade at attractive
valuations, and, in the Sponsor's opinion, are likely to exceed market
expectations of future cash flows.
See "Schedule of Investments" and "What are the Equity Securities?-Risk
Factors" for the Fundamental Value Trust Series. There is no assurance
that the objective of the Fundamental Value Trust will be achieved.
Insurance Growth Trust Series
The objective of the Insurance Growth Trust Series (the "Insurance
Growth Trust") is to provide investors with the potential for above-
average capital appreciation through an investment in a diversified
portfolio of common stocks of companies that are involved in several
lines of insurance, including financial guarantee, life and health,
multi-line, and property and casualty. A diversified portfolio helps to
offset the risks normally associated with such an investment, although
it does not eliminate them entirely. The companies selected for the
Insurance Growth Trust have been researched and evaluated using database
screening techniques, fundamental analysis, and the judgment of the
Sponsor's research analysts.
In an industry whose products are used by almost every American family,
the Sponsor believes the companies selected are ideally positioned to
take advantage of the many trends shaping the insurance industry.
Despite prospects for above-average earnings growth, the companies
chosen for the Insurance Growth Trust currently trade, on average, at
below-market price to earnings ratios. The attractive valuations
relative to earnings prospects should provide the potential for capital
appreciation in excess of market returns. In addition, insurance
companies benefit from a declining interest rate environment, as a large
portion of their assets are invested in fixed income securities which
rise in value when interest rates decline. Given the modest and
relatively stable rate of inflation in the recent past and the outlook
for continued low levels of inflation, the Sponsor believes that
interest rates will remain at their relatively low levels or perhaps
Page 11
decline, maintaining a positive interest rate environment for insurance
companies.
Insurance companies are expanding their businesses by reaching customers
in new ways. In addition to selling through traditional insurance
agents, insurance is increasingly being marketed through financial
planners, banks, direct mail, telemarketing and on-line via the
Internet. By selling insurance products through new distribution
channels, the Sponsor believes that too many insurance companies
offering the same products create an environment of excess capacity.
Increased consolidation activity is expected to occur at an accelerating
rate, in order to eliminate that excess capacity. By restructuring
through mergers or acquisitions, insurers can streamline operations,
boost profits, and enhance shareholder value from any takeover premiums.
An investment in Units of the Insurance Growth Trust should be made with
an understanding of the risks involved with owning insurance companies,
including the fact that the insurance industry is subject to adverse
effects of volatile interest rates, economic recession, increased
competition, and the potential for increased regulation.
See "Schedule of Investments" and "What are the Equity Securities?-Risk
Factors" for the Insurance Growth Trust. There is, however, no assurance
that the objective of the Insurance Growth Trust will be achieved.
Internet Growth Trust, Series 4
The objective of the Internet Growth Trust, Series 4 (the "Internet
Growth Trust") is to provide investors with the potential for above-
average capital appreciation through an investment in a diversified
portfolio of common stocks of U.S.-based companies the Sponsor believes
are ideally positioned to take advantage of the rapid growth of the
Internet. The portfolio of the Internet Growth Trust is diversified
across many related sectors: access/information providers, computer
networking, computers, semiconductors and software. Diversifying a
portfolio helps to offset the risks normally associated with equity
investments, although risk cannot be entirely eliminated. This type of
diversification provides a convenient, efficient way for the investor to
own stocks in a number of companies without considerable time and
capital commitments.
In the Sponsor's opinion, the growing numbers of users and web sites
along with expanding capabilities make the Internet Growth Trust an
attractive investment opportunity. More than 58 million adults are on-
line in the U.S. alone, and the number is expected to triple by 2002. In
fact, a new computer is added to the Internet every four seconds, and
nearly 3,000 new websites are being added every day. Rising standards of
living and more disposable income worldwide, combined with faster, more
efficient and affordable technology will dramatically expand the
potential number of users. In addition, improved security measures are
helping to increase the number of consumer transactions over the web.
Corporations have made huge strides in the way they conduct business-to-
business transactions over the Internet, making it more commercially
feasible for the mass market. Business-to-business electronic commerce
is anticipated to reach $26 billion by 2000, up from an estimated $9.5
billion in 1997. Consolidation and mergers among companies involved with
the Internet are increasing. Technological improvement like high-speed
data and video transmission through cable connections are helping to
fuel this growth. The Sponsor believes the companies selected for the
portfolio stand to benefit from the combination of increased demand,
faster and more efficient services, and more affordable equipment.
The companies selected for the Internet Growth Trust have been
researched and evaluated using database screening techniques,
fundamental analysis, and the judgment of the Sponsor's research
analysts. To help reduce risk, the Internet Growth Trust avoids small
companies, newly-issued stocks, and stocks with little or no earnings.
In general, the Sponsor believes the companies selected have above-
average growth prospects for both sales and earnings, and lower than
average debt.
The Sponsor believes that the enormous growth potential of the Internet
offers a compelling investment opportunity. However, since the Internet
is in the early stages of its development and the direction of its
evolution is unpredictable, tremendous risks exist. It is important to
note that companies engaged in business related to the Internet are
subject to fierce competition and their products and services may be
subject to rapid obsolescence.
See "Schedule of Investments" and "What are the Equity Securities?-Risk
Factors" for the Internet Growth Trust. There is, however, no assurance
that the objective of the Internet Growth Trust will be achieved.
Page 12
Media & Entertainment Growth Trust, Series 2
The objective of the Media & Entertainment Growth Trust, Series 2 (the
"Media & Entertainment Growth Trust") is to provide investors with the
potential for above-average capital appreciation through an investment
in a diversified portfolio of common stocks of leading media and
entertainment companies the Sponsor believes are ideally positioned to
take advantage of the rapidly expanding global demand for media and
entertainment programming and delivery systems. A diversified portfolio
helps to offset the risks normally associated with such an investment,
although it does not eliminate them entirely. The companies selected for
the Media & Entertainment Growth Trust have been researched and
evaluated using database screening techniques, fundamental analysis, and
the judgment of the Sponsor's research analysts.
More people around the world continue to experience an increase in
disposable income. As a result, the demand for American movies, TV
programs and other entertainment products should increase. Population
growth, world trade liberalization, and an improved political climate in
many countries are also favorable factors for the global growth of media
and entertainment companies. Access to information and entertainment is
becoming easier and more affordable. As the providers of these services
try to entice new users, they will require the products provided by the
leading media and entertainment companies.
The landmark Telecommunications Act of 1996 should continue to benefit
media and entertainment companies. Relaxed restrictions on radio and
television station ownership will further encourage consolidation as
broadcast companies look to lower economies of scale. In addition,
demand for quality content will only intensify as broadcasters and cable
television companies compete for access to the best content to fill
their programming schedules.
An investment in companies in the media and entertainment industry
should be made with an understanding of the many factors which may have
an adverse impact on a particular company, or on the industry in
general. Certain of these include the cyclicality of revenues and
earnings of companies in the industry, the availability of discretionary
income of individuals, changing consumer tastes and interests, fierce
competition in the industry and changing governmental regulations.
See "Schedule of Investments" and "What are the Equity Securities?-Risk
Factors" for the Media & Entertainment Growth Trust. There is no
assurance that the objective of the Media & Entertainment Growth Trust
will be achieved.
Medical Growth Trust Series
The objective of the Medical Growth Trust Series (the "Medical Growth
Trust") is to provide investors with the potential for above-average
capital appreciation through an investment in a diversified portfolio of
common stocks of medical companies that have active participation in the
expanding markets of medical devices, medical products and
pharmaceuticals/biotech. The Sponsor believes the companies selected are
positioned to take advantage of this growing industry. The companies
vary in size from blue chip to emerging growth and have special niche
qualities in marketing, manufacturing and research. This diversification
helps to offset risk, although it does not eliminate it entirely. The
companies selected for the Medical Growth Trust are researched and
evaluated using database screening techniques, fundamental analysis and
the judgment of the Sponsor's research analysts. The Sponsor believes
powerful changing economic, social and technological forces are now
taking place that could lead to a strong future for the medical industry.
This positive outlook is supported by the increasing demand for medical-
related services and products required by an aging American population.
In the U.S., the population over 65 numbers over 30 million today, and
the impact of the aging 76 million "baby boomers" will likely have a
dramatic effect on the health care system. The pace of scientific
discoveries is accelerating as the research and development pipeline for
new medicines and technologies creates new markets and provides the
potential for sales growth. Breakthrough discoveries may have large
commercial potential, and the potential for expanded drug and medical
benefits coverage could lead to large increases in industry volume.
Industry-wide reforms continue to unfold, creating merger opportunities
for companies in the medical sector. Mergers, acquisitions and
partnerships continue to be a viable way for larger companies to fill
specific product lines, acquire new technology and benefit from
economies of scale.
It is important to note that companies engaged in the medical industry
are subject to government regulation of their products and services,
increasing competition, termination of patent protection, and the risk
Page 13
that technological advances will render their products or services
obsolete.
See "Schedule of Investments" and "What are the Equity Securities?-Risk
Factors" for the Medical Growth Trust. There is no assurance that the
objective of the Medical Growth Trust will be achieved.
With the deposit of the Equity Securities on the Initial Date of
Deposit, the Sponsor established a percentage relationship between the
amounts of Equity Securities in each Trust's portfolio, as set forth
under "Schedule of Investments" for each Trust. From time to time
following the Initial Date of Deposit, the Sponsor, pursuant to the
Indenture, may create additional Units in a Trust by depositing
additional Equity Securities or cash (including a letter of credit) with
instructions to purchase additional Equity Securities in a Trust. Units
may be continuously offered for sale to the public by means of this
Prospectus, resulting in a potential increase in the outstanding number
of Units of a Trust. Any deposit by the Sponsor of additional Equity
Securities, or the purchase of additional Equity Securities pursuant to
a cash deposit, will duplicate, as nearly as is practicable, the
original proportionate relationship and not the actual proportionate
relationship on the subsequent date of deposit, since the two may
differ. Any such difference may be due to the sale, redemption or
liquidation of any of the Equity Securities deposited in a Trust on the
Initial, or any subsequent, Date of Deposit. See "Rights of Unit Holders-
How May Equity Securities be Removed from a Trust?" Since the prices of
the underlying Equity Securities will fluctuate daily, the ratio, on a
market value basis, will also change daily. The portion of Equity
Securities represented by each Unit will not change as a result of the
deposit of additional Equity Securities in a Trust. 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 Equity Securities between
the time of the cash deposit and the purchase of the Equity Securities
and because such Trust will pay the associated brokerage fees. To
minimize this effect, the Trusts will try to purchase the Equity
Securities as close to the evaluation time as possible. The Trustee may,
from time to time, retain and pay compensation to the Sponsor (or an
affiliate of the Sponsor) to act as agent for a Trust with respect to
acquiring Equity Securities for a Trust. In acting in such capacity, the
Sponsor or its affiliate will be subject to the restrictions under the
Investment Company Act of 1940, as amended.
On the Initial Date of Deposit, each Unit of a Trust represented the
undivided fractional interest in the Equity Securities deposited in such
Trust set forth under "Summary of Essential Information" for each Trust.
To the extent that Units of a Trust are redeemed, the aggregate value of
the Equity Securities in such Trust will be reduced and the undivided
fractional interest represented by each outstanding Unit of that Trust
will increase. However, if additional Units are issued by a Trust in
connection with the deposit of additional Equity Securities or cash by
the Sponsor, the aggregate value of the Equity Securities in that Trust
will be increased by amounts allocable to additional Units, and the
fractional undivided interest represented by each Unit of that Trust
will be decreased proportionately. See "Rights of Unit Holders-How May
Units be Redeemed?"
What are the Expenses and Charges?
With the exception of brokerage fees discussed above and bookkeeping and
other administrative services provided to each Trust, for which the
Sponsor will be reimbursed in amounts as set forth under "Summary of
Essential Information," the Sponsor will not receive any fees in
connection with its activities relating to a Trust.
First Trust Advisers L.P., an affiliate of the Sponsor, will receive an
annual supervisory fee, which is not to exceed the amount set forth
under "Summary of Essential Information," for providing portfolio
supervisory services for each Trust. Such fee is based on the number of
Units outstanding in a Trust on January 1 of each year except for the
year or years in which an initial offering period occurs in which case
the fee for a month is based on the number of Units outstanding at the
end of such month. In providing such supervisory services, the Portfolio
Supervisor may purchase research services from a variety of sources
which may include dealers of the Trusts.
Subsequent to the initial offering period, First Trust Advisers L.P., in
its capacity as the Evaluator for the Trusts, will receive a fee as
indicated in the "Summary of Essential Information."
The Trustee pays certain expenses of each Trust for which it is
reimbursed by such Trust. The Trustee will receive for its ordinary
recurring services to each Trust an annual fee set forth in each
"Summary of Essential Information," which is based upon the largest
Page 14
aggregate number of Units of each Trust outstanding at any time during
the year. For a discussion of the services performed by the Trustee
pursuant to its obligations under the Indenture, reference is made to
the material set forth under "Rights of Unit Holders."
The Trustee's and the above described fees are payable from the Income
Account of a Trust to the extent funds are available and then from the
Capital Account of such Trust. Since the Trustee has the use of the
funds being held in the Capital and Income Accounts for payment of
expenses and redemptions and since such Accounts are noninterest-bearing
to Unit holders, the Trustee benefits thereby. Part of the Trustee's
compensation for its services to each Trust is expected to result from
the use of these funds.
Each of the above mentioned fees may be increased without approval of
the Unit holders by amounts not exceeding proportionate increases under
the category "All Services Less Rent of Shelter" in the Consumer Price
Index published by the United States Department of Labor. In addition,
with respect to the fees payable to the Sponsor or an affiliate of the
Sponsor for providing bookkeeping and other administrative services,
supervisor services and evaluation services, such individual fees may
exceed the actual costs of providing such services for a Trust, but at
no time will the total amount received for such services rendered to all
unit investment trusts of which Nike Securities L.P. is the Sponsor in
any calendar year exceed the actual cost to the Sponsor or its affiliate
of supplying such services in such year.
Expenses incurred in establishing the Trusts, 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's portfolio and
the initial fees and expenses of the Trustee and any other out-of-pocket
expenses, will be paid by each Trust and charged off over a period not
to exceed the life of the Trust (approximately five years). The
following additional charges are or may be incurred by a Trust: all
legal and annual auditing expenses of the Trustee incurred by or in
connection with its responsibilities under the Indenture; the expenses
and costs of any action undertaken by the Trustee to protect a Trust and
the rights and interests of the Unit holders; fees of the Trustee for
any extraordinary services performed under the Indenture;
indemnification of the Trustee for any loss, liability or expense
incurred by it without negligence, bad faith or willful misconduct on
its part, arising out of or in connection with its acceptance or
administration of a Trust; indemnification of the Sponsor for any loss,
liability or expense incurred without gross negligence, bad faith or
willful misconduct in acting as Depositor of such Trust; all taxes and
other government charges imposed upon the Securities or any part of a
Trust (no such taxes or charges are being levied or made or, to the
knowledge of the Sponsor, contemplated). The above expenses and the
Trustee's annual fee, when paid or owing to the Trustee, are secured by
a lien on each Trust. In addition, the Trustee is empowered to sell
Equity Securities in a Trust in order to make funds available to pay all
these amounts if funds are not otherwise available in the Income and
Capital Accounts of such Trust. Since the Equity Securities are all
common stocks and the income stream produced by dividend payments is
unpredictable, the Sponsor cannot provide any assurance that dividends
will be sufficient to meet any or all expenses of a Trust. As described
above, if dividends are insufficient to cover expenses, it is likely
that Equity Securities will have to be sold to meet such Trust expenses.
These sales may result in capital gains or losses to Unit holders. See
"What is the Federal Tax Status of Unit Holders?"
The Indenture requires each Trust to be audited on an annual basis at
the expense of such Trusts by independent auditors selected by the
Sponsor. So long as the Sponsor is making a secondary market for the
Units, the Sponsor is required to bear the cost of such annual audits to
the extent such cost exceeds $0.0050 per Unit. Unit holders of a Trust
covered by an audit may obtain a copy of the audited financial
statements upon request.
What is the Federal Tax Status of Unit Holders?
This 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"). Unit
holders 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 the Trusts. For purposes of the following
discussion and opinion, it is assumed that each Equity Security is
equity for Federal income tax purposes.
In the opinion of Chapman and Cutler, special counsel for the Sponsor,
under existing law:
Page 15
1. Each Trust is not an association taxable as a corporation for
Federal income tax purposes; each Unit holder will be treated as the
owner of a pro rata portion of each of the assets of a Trust under the
Code; and the income of each Trust will be treated as income of the Unit
holders thereof under the Code. Each Unit holder will be considered to
have received his pro rata share of the income derived from each Equity
Security when such income is considered to be received by a Trust.
2. Each Unit holder will be considered to have received all of the
dividends paid on his or her pro rata portion of each Equity Security
when such dividends are considered to be received by a Trust regardless
of whether such dividends are used to pay a portion of the deferred
sales charge or other expenses payable from Trust income. Unit holders
will be taxed in this manner regardless of whether distributions from
such Trust are actually received by the Unit holder or are automatically
reinvested.
3. Each Unit holder will have a taxable event when a Trust disposes of
an Equity Security (whether by sale, taxable exchange, liquidation,
redemption, or otherwise) or upon the sale or redemption of Units by
such Unit holder (except to the extent an In-Kind distribution of stocks
is received by such Unit holder as described below). The price a Unit
holder pays for his or her Units, generally including sales charges, is
allocated among his or her pro rata portion of each Equity Security held
by a Trust (in proportion to the fair market values thereof on the
valuation date closest to the date the Unit holder purchases his or her
Units) in order to determine the tax basis for his or her pro rata
portion of each Equity Security held by such Trust. Unit holders should
consult their own tax advisers with regard to calculation of basis. For
Federal income tax purposes, a Unit holder's pro rata portion of
dividends, as defined by Section 316 of the Code, paid by a corporation
with respect to an Equity Security held by a Trust is taxable as
ordinary income to the extent of such corporation's current and
accumulated "earnings and profits." A Unit holder's pro rata portion of
dividends paid on such Equity Security which exceed such current and
accumulated earnings and profits will first reduce a Unit holder's tax
basis in such Equity Security, and to the extent that such dividends
exceed a Unit holder's tax basis in such Equity 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 Unit holder has
held his or her Units.
4. A Unit holder's portion of gain, if any, upon the sale or
redemption of Units or the disposition of Equity Securities held by a
Trust will generally be considered a capital gain (except in the case of
a dealer or a financial institution) and will be long-term if the Unit
holder has held his or her Units for more than one year (the date on
which the Units are acquired (i.e., the trade date) as excluded for
purposes of determining if the Units have been held for more than one
year). A Unit holder's portion of loss, if any, upon the sale or
redemption of Units or the disposition of Equity Securities held by a
Trust will generally be considered a capital loss (except in the case of
a dealer or a financial institution) and, in general, will be long-term
if the Unit holder has held his or her Units for more than one year.
Unit holders should consult their tax advisers regarding the recognition
of such capital gains and losses for Federal income tax purposes.
Deferred Sales Charge. Generally, the tax basis of a Unit holder
includes sales charges, and such charges are not deductible. A portion
of the sales charge for the Trusts 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 Unit holder
subject to limitations on the deduction of investment interest. In such
a case, the non-interest portion of the deferred sales charge should be
added to the Unit holder's tax basis in his or her Units. The deferred
sales charge could cause the Unit holder'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 Unit holder must take into
account for federal income tax purposes is not reduced by amounts
deducted to pay the deferred sales charge. Unit holders 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 Unit holder's pro rata portion of dividends received by a Trust
(to the extent such dividends are taxable as ordinary income, as
discussed above, and are attributable to domestic corporations) in the
Page 16
same manner as if such corporation directly owned the Equity Securities
paying such dividends (other than corporate Unit holders, 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 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 Unit holder 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. Unit holders
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 a 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 a Trust's Expenses by Unit Holders. Each
Unit holder's pro rata share of each expense paid by a Trust is
deductible by the Unit holder to the same extent as though the expense
had been paid directly by such Unit holder. 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.
Unit holders may be required to treat some or all of the expenses of a
Trust as miscellaneous itemized deductions subject to this limitation.
Unit holders 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 Unit holder may
recognize taxable gain (or loss) when an Equity Security is disposed of
by a Trust or if the Unit holder disposes of a Unit. The Taxpayer Relief
Act of 1997 (the "1997 Act") provides that for taxpayers 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) is
subject to a maximum marginal stated tax rate of either 28% or 20%,
depending upon the holding periods of the capital assets. 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 is one
year or less. The date on which a Unit is acquired (i.e., the "trade
date") is excluded for purposes of determining the holding period of the
Unit. Generally, capital gains realized from assets held for more than
one year but not more than 18 months are taxed at a maximum marginal
stated tax rate of 28% and capital gains realized from assets (with
certain exclusions) held for more than 18 months are taxed at a maximum
marginal stated tax rate of 20% (10% in the case of certain taxpayers in
the lowest tax bracket). Further, capital gains realized from assets
held for one year or less are taxed at the same rates as ordinary
income. Legislation is currently pending that provides the appropriate
methodology that should be applied in netting the realized capital gains
and losses. Such legislation is proposed to be effective retroactively
for tax years ending after May 6, 1997. The Internal Revenue Service has
released preliminary guidance which provides that, in general, pass-
through entities may designate their capital gain dividends as either a
20% rate gain distribution or a 28% rate gain, depending on the nature
of the gain received by the pass-through entity. Unit holders should
consult their own tax advisers as to the tax rate applicable to capital
gain dividends. The date on which a Unit is acquired (i.e., the "trade
date") is excluded for purposes of determining the holding period of
such Unit. 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, 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. Unit holders and prospective investors should
Page 17
consult with their tax advisers regarding the potential effect of this
provision on their investment in Units.
If the Unit holder disposes of a Unit, he is deemed thereby to have
disposed of his or her entire pro rata interest in all assets of a Trust
involved including his or her pro rata portion of all the Equity
Securities represented by the Unit.
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. Unit holders should consult their own
tax advisers with regard to any constructive sale rules.
Special Tax Consequences of In-Kind Distributions Upon Redemption of
Units or Termination of a Trust. As discussed in "Rights of Unit Holders-
How are Income and Capital Distributed?", under certain circumstances a
Unit holder who owns at least 2,500 Units of a Trust may request an In-
Kind Distribution upon the redemption of Units or the termination of the
Trust. The Unit holder 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 "Rights of Unit Holders-How are Income and
Capital Distributed?" As previously discussed, prior to the redemption
of Units or the termination of a Trust, a Unit holder is considered as
owning a pro rata portion of each of a Trust's assets for Federal income
tax purposes. The receipt of an In-Kind Distribution will result in a
Unit holder receiving an undivided interest in whole shares of stock
plus, possibly, cash.
The potential tax consequences that may occur under an In-Kind
Distribution with respect to each Equity Security owned by a Trust will
depend on whether or not a Unit holder receives cash in addition to
Equity Securities. An "Equity Security" for this purpose is a particular
class of stock issued by a particular corporation. A Unit holder will
not recognize gain or loss if a Unit holder only receives Equity
Securities in exchange for his or her pro rata portion in the Equity
Securities held by a Trust. However, if a Unit holder also receives cash
in exchange for a fractional share of an Equity Security held by a
Trust, such Unit holder will generally recognize gain or loss based upon
the difference between the amount of cash received by the Unit holder
and his tax basis in such fractional share of an Equity Security held by
such Trust.
Because a Trust will own many Equity Securities, a Unit holder who
requests an In-Kind Distribution will have to analyze the tax
consequences with respect to each Equity Security owned by a 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 Unit holder with respect to each Equity Security
owned by a Trust. Unit holders who request an In-Kind Distribution are
advised to consult their tax advisers in this regard.
Computation of the Unit Holder's Tax Basis. Initially, a Unit holder's
tax basis in his or her Units will generally equal the price paid by
such Unit holder for his or her Units. The cost of the Units is
allocated among the Equity Securities held in a Trust in accordance with
the proportion of the fair market values of such Equity Securities as of
the valuation date nearest the date the Units are purchased in order to
determine such Unit holder's tax basis for his or her pro rata portion
of each Equity Security.
A Unit holder's tax basis in his Units and his or her pro rata portion
of an Equity Security held by a Trust will be reduced to the extent
dividends paid with respect to such Equity Security are received by a
Trust which are not taxable as ordinary income as described above.
General. Each Unit holder will be requested to provide the Unit holder's
taxpayer identification number to the Trustee and to certify that the
Unit holder has not been notified that payments to the Unit holder are
subject to back-up withholding. If the proper taxpayer identification
number and appropriate certification are not provided when requested,
distributions by a Trust to such Unit holder (including amounts received
upon the redemption of Units) will be subject to back-up withholding.
Distributions by a Trust (generally 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.
In general, income that is not effectively connected to the conduct of a
trade or business within the United States that is earned by non-U.S.
Unit holders and derived from dividends of foreign corporations will not
be subject to U.S. withholding tax provided that less than 25 percent of
the gross income of the foreign corporation for a three-year period
Page 18
ending with the close of its taxable year preceding payment was not
effectively connected to the conduct of a trade or business within the
United States. In addition, such earnings may be exempt from U.S.
withholding pursuant to a specific treaty between the United States and
a foreign country. Non-U.S. Unit holders should consult their own tax
advisers regarding the imposition of U.S. withholding on distributions
from the Trusts.
It should be noted that payments to the Trusts of dividends on Equity
Securities that are attributable to foreign corporations may be subject
to foreign withholding taxes and Unit holders should consult their tax
advisers regarding the potential tax consequences relating to the
payment of any such withholding taxes by the Trusts. Any dividends
withheld as a result thereof will nevertheless be treated as income to
the Unit holders. Because, under the grantor trust rules, an investor is
deemed to have paid directly his share of foreign taxes that have been
paid or accrued, if any, an investor may be entitled to a foreign tax
credit or deduction for United States purposes with respect to such
taxes. The 1997 Act imposes a required holding period for such credits.
Investors should consult their tax advisers with respect to foreign
withholding taxes and foreign tax credits.
At the termination of a Trust, the Trustee will furnish to each Unit
holder a statement containing information relating to the dividends
received by the particular Trust on the Equity Securities, the gross
proceeds received by such Trust from the disposition of any Equity
Security (resulting from redemption or the sale of any Equity Security)
and the fees and expenses paid by the Trust. The Trustee will also
furnish annual information returns to Unit holders and to the Internal
Revenue Service.
Unit holders will be notified annually of the amounts of dividends
includable in the Unit holder's gross income and amounts of Trust
expenses which may be claimed as itemized deductions.
Unit holders 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 "Are Investments in the Trusts Eligible for
Retirement Plans?"
The foregoing discussion relates only to the tax treatment of U.S. Unit
holders ("U.S. Unit holders") with regard to federal and certain aspects
of New York State and City income taxes. Unit holders 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. Unit
holder" means an owner of a Unit in the Trusts 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. Unit holder in paragraph
(a) but whose income from a Unit is effectively connected with such Unit
holder'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. Unit holders should consult their tax
advisers regarding potential state or local taxation with respect to the
Units.
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 such Trusts will be treated as the income
of the Unit holders thereof.
Are Investments in the Trusts Eligible for Retirement Plans?
Units of the Trusts are eligible 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.
Page 19
PORTFOLIO
What are the Equity Securities?
The Trusts consist of different issues of Equity Securities which are
listed on a national securities exchange or The Nasdaq Stock Market or
traded in the over-the-counter market. See "What are the Equity
Securities Selected for Communications Growth Trust, Series 2?," "What
are the Equity Securities Selected for Fundamental Value Trust Series?,"
"What are the Equity Securities Selected for Insurance Growth Trust
Series?," "What are the Equity Securities Selected for Internet Growth
Trust, Series 4?," "What are the Equity Securities Selected for Media &
Entertainment Growth Trust, Series 2?" and "What are the Equity
Securities Selected for Medical Growth Trust Series?" for a general
description of the companies.
Risk Factors. An investment in Units of the Trusts should be made with
an understanding of the problems and risks such an investment may entail.
Communications Growth Trust, Series 2. An investment in Units of the
Communications Growth Trust 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, rapid product
obsolescence, cyclical market patterns, evolving industry standards and
frequent new product introductions. The success of the issuers of the
Equity 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 Equity
Securities will be able to respond in a timely manner to compete in the
rapidly developing marketplace.
The communications industry is subject to governmental regulation.
However, as market forces develop, the government will continue to
deregulate the communications industry, promoting vigorous economic
competition and resulting in the rapid development of new communications
technologies. The products and services of communications companies may
be subject to rapid obsolescence. These factors could affect the value
of the Trust's Units. For example, while telephone companies in the
United States are subject to both state and federal regulations
affecting permitted rates of returns and the kinds of services that may
be offered, the prohibition against phone companies delivering video
services has been lifted. This creates competition between phone
companies and cable operators and encourages phone companies to
modernize their communications infrastructure. Certain types of
companies represented in the Trust's portfolio are engaged in fierce
competition for a share of the market of their products. As a result,
competitive pressures are intense and the stocks are subject to rapid
price volatility.
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 Equity
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.
Fundamental Value Trust Series. An investment in Units of the
Fundamental Value Trust should be made with an understanding of the
risks associated with an investment in common stocks, including the risk
that the financial condition of the issuers of the common stocks or the
general condition of the stock market may worsen, and, therefore, the
value of the Units may be worth more or less than their original price
at redemption.
Insurance Growth Trust Series. An investment in Units of the Insurance
Growth Trust should be made with an understanding of the problems and
risks inherent in the insurance sector in general.
Companies involved in the insurance industry are engaged in
underwriting, reinsuring, selling, distributing or placing of property
and casualty, life or health insurance. Other growth areas within the
insurance industry include brokerage, reciprocals, claims processors and
multiline insurance companies. Multiline insurance companies provide
property and casualty coverage, as well as life and health insurance.
The Trust may also invest in diversified financial companies with
subsidiaries (including insurance brokerage, reciprocals and claims
processors) engaged in underwriting, reinsuring, selling, distributing
Page 20
or placing insurance with independent third parties.
Insurance company profits are affected by interest rate levels, general
economic conditions, and price and marketing competition. Property and
casualty insurance profits may also be affected by weather catastrophes
and other disasters. Life and health insurance profits may be affected
by mortality and morbidity rates. Individual companies may be exposed to
material risks including reserve inadequacy and the inability to collect
from reinsurance carriers. Insurance companies are subject to extensive
governmental regulation, including the imposition of maximum rate
levels, which may not be adequate for some lines of business. Proposed
or potential tax law changes may also adversely affect insurance
companies' policy sales, tax obligations, and profitability. In addition
to the foregoing, profit margins of these companies continue to shrink
due to the commoditization of traditional businesses, new competitors,
capital expenditures on new technology and the pressures to compete
globally.
In addition to the normal risks of business, companies involved in the
insurance industry are subject to significant risk factors, including
those applicable to regulated insurance companies, such as: (i) the
inherent uncertainty in the process of establishing property-liability
loss reserves, particularly reserves for the cost of environmental,
asbestos and mass tort claims, and the fact that ultimate losses could
materially exceed established loss reserves which could have a material
adverse effect on results of operations and financial condition; (ii)
the fact that insurance companies have experienced, and can be expected
in the future to experience, catastrophe losses which could have a
material adverse impact on their financial condition, results of
operations and cash flow; (iii) the inherent uncertainty in the process
of establishing property-liability loss reserves due to changes in loss
payment patterns caused by new claims settlement practices; (iv) the
need for insurance companies and their subsidiaries to maintain
appropriate levels of statutory capital and surplus, particularly in
light of continuing scrutiny by rating organizations and state insurance
regulatory authorities, and in order to maintain acceptable financial
strength or claims-paying ability rating; (v) the extensive regulation
and supervision to which insurance companies' subsidiaries are subject,
various regulatory initiatives that may affect insurance companies, and
regulatory and other legal actions; (vi) the adverse impact that
increases in interest rates could have on the value of an insurance
company's investment portfolio and on the attractiveness of certain of
its products; (vii) the need to adjust the effective duration of the
assets and liabilities of life insurance operations in order to meet the
anticipated cash flow requirements of its policyholder obligations; and
(vii) the uncertainty involved in estimating the availability of
reinsurance and the collectibility of reinsurance recoverables.
The state insurance regulatory framework has, during recent years, come
under increased federal scrutiny, and certain state legislatures have
considered or enacted laws that alter and, in many cases, increase state
authority to regulate insurance companies and insurance holding company
systems. Further, the National Association of Insurance Commissioners
("NAIC") and state insurance regulators are re-examining existing laws
and regulations, specifically focusing on insurance companies,
interpretations of existing laws and the development of new laws. In
addition, Congress and certain federal agencies have investigated the
condition of the insurance industry in the United States to determine
whether to promulgate additional federal regulation. The Underwriter is
unable to predict whether any state or federal legislation will be
enacted to change the nature or scope of regulation of the insurance
industry, or what effect, if any, such legislation would have on the
industry.
All insurance companies are subject to state laws and regulations that
require diversification of their investment portfolios and limit the
amount of investments in certain investment categories. Failure to
comply with these laws and regulations would cause non-conforming
investments to be treated as non-admitted assets for purposes of
measuring statutory surplus and, in some instances, would require
divestiture.
Environmental pollution clean-up is the subject of both federal and
state regulation. By some estimates, there are thousands of potential
waste sites subject to clean up. The insurance industry is involved in
extensive litigation regarding coverage issues. The Comprehensive
Environmental Response Compensation and Liability Act of 1980
("Superfund") and comparable state statutes ("mini-Superfund") govern
the clean-up and restoration by "Potentially Responsible Parties"
("PRP's"). Superfund and the mini-Superfunds ("Environmental Clean-up
Laws or "ECLs") establish a mechanism to pay for clean-up of waste sites
if PRP's fail to do so, and to assign liability to PRP's. The extent of
liability to be allocated to a PRP is dependent on a variety of factors.
Further, the number of waste sites subject to clean-up is unknown. Very
few sites have been subject to clean-up to date. The extent of clean-up
Page 21
necessary and the assignment of liability has not been established. The
insurance industry is disputing many such claims. Key coverage issues
include whether Superfund response costs are considered damages under
the policies, when and how coverage is triggered, applicability of
pollution exclusions, the potential for joint and several liability and
definition of an occurrence. Similar coverage issues exist for clean up
and waste sites not covered under Superfund. To date, courts have been
inconsistent in their rulings on these issues. An insurer's exposure to
liability with regard to its insureds which have been, or may be, named
as PRPs is uncertain. Superfund reform proposals have been introduced in
Congress, but none have been enacted. There can be no assurance that any
Superfund reform legislation will be enacted or that any such
legislation will provide for a fair, effective and cost-efficient system
for settlement of Superfund related claims.
Proposed federal legislation which would permit banks greater
participation in the insurance business could, if enacted, present an
increased level of competition for the sale of insurance products. In
addition, while current federal income tax law permits the tax-deferred
accumulation of earnings on the premiums paid by an annuity owner and
holders of certain savings-oriented life insurance products, no
assurance can be given that future tax law will continue to allow such
tax deferrals. If such deferrals were not allowed, consumer demand for
the affected products would be substantially reduced. In addition,
proposals to lower the federal income tax rates through a form of flat
tax or otherwise could have, if enacted, a negative impact on the demand
for such products.
Internet Growth Trust, Series 4. An investment in Units of the Internet
Growth Trust should be made with an understanding of the problems and
risks inherent in the technology sector in general.
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 Equity 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
Equity Securities will be able to respond in a timely manner to compete
in the rapidly developing marketplace.
Based on trading history of technology stocks, 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 Equity Securities and therefore
the ability of a Unit holder 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
Equity 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 Equity Securities.
Many technology companies rely on a combination of patents, copyrights,
trademarks and trade secret laws to establish and protect their
Page 22
proprietary rights in their products and technologies. There can be no
assurance that the steps taken by the issuers of the Equity 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.
Media & Entertainment Growth Trust, Series 2. An investment in Units of
the Media & Entertainment Growth Trust should be made with an
understanding of the problems and risks inherent in the advertising,
broadcasting, cable television, entertainment and publishing sectors in
general. An investment in companies in the media and entertainment
industry should be made with an understanding of the many factors which
may have an adverse impact on a particular company, or on the industry
in general. Certain of these include the cyclicality of revenues and
earnings of companies in the industry, the availability of discretionary
income of individuals, changing consumer tastes and interests, fierce
competition in the industry and increasing governmental regulations.
Certain of these companies may derive a significant portion of their
revenues from the discretionary income of individuals, which may be
adversely affected by economic downturns which reduce the amount of
personal income available for non-essential items. Many of the products
offered by the companies in the entertainment industry are subject to
the risks of rapid obsolescence and changing consumer tastes and
interests. In addition, certain types of companies are subject to
various government regulations. For example, cable and
telecommunications companies are subject to state and federal
regulations, affecting the price of their services and the kinds of
service which they may offer. Certain media communications companies are
subject to Federal Communications Commission regulations. As a result of
the foregoing, the Equity 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 Equity Securities during the life of
the Trust.
Medical Growth Trust Series. An investment in Units of the Medical
Growth Trust should be made with an understanding of the problems and
risks inherent in the medical sector in general.
Medical companies have risks unique to their sector of the healthcare
field. These 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, such companies face the risk of
increasing competition from new products or services, generic drug
sales, termination of patent protection for drug or medical supply
products and the risk that technological advances will render their
products 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 healthcare field will continue to search for and develop new drugs,
medical products and medical services through advanced technologies and
diagnostics. On a worldwide basis, such companies are involved in the
development and distributions of drugs, vaccines, medical products and
medical services. These activities may make the healthcare and medical
services sector very attractive for investors seeking the potential for
growth in their investment portfolio. However, there are no assurances
that the Trust's objective will be met.
Legislative initiatives concerning healthcare are proposed in Congress
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 Equity Securities
in the Trust.
Certain of the Equity Securities in the Trust are issued by small-cap
companies (market capitalization between $100 million and $1 billion).
While historically small-cap company stocks have outperformed the stocks
Page 23
of large companies, the former have customarily involved more investment
risk as well. Small-cap companies may have limited product lines,
markets or financial resources; may lack management depth or experience;
and may be more vulnerable to adverse general market or economic
developments than large companies. Some of the companies in which the
Trust may invest may distribute, sell or produce products which have
recently been brought to market and may be dependent on key personnel.
The prices of small company securities are often more volatile than
prices associated with large company issues, and can display abrupt or
erratic movements at times, due to limited trading volumes and less
publicly available information. Also, because small cap companies
normally have fewer shares outstanding and these shares trade less
frequently than large companies, it may be more difficult for the Trust
to buy and sell significant amounts of such shares without an
unfavorable impact on prevailing market prices. The securities of small
companies are often traded over-the-counter and may not be traded in the
volumes typical on a national securities exchange.
General. Each Trust consists of such Equity Securities listed under the
"Schedule of Investments" for each Trust as may continue to be held from
time to time in a Trust and any additional Equity Securities acquired
and held by the Trusts pursuant to the provisions of the Indenture,
together with cash held in the Income and Capital Accounts. Neither the
Sponsor nor the Trustee shall be liable in any way for any failure in
any of the Equity Securities. However, should any contract for the
purchase of any of the Equity Securities initially deposited hereunder
fail, the Sponsor will, unless substantially all of the moneys held in a
Trust to cover such purchase are reinvested in substitute Equity
Securities in accordance with the Indenture, refund the cash and sales
charge attributable to such failed contract to all Unit holders on the
next distribution date.
Because certain of the Equity Securities from time to time may be sold
under certain circumstances described herein, and because the proceeds
from such events will be distributed to Unit holders and will not be
reinvested, no assurance can be given that a Trust will retain for any
length of time its present size and composition. Although the Portfolio
is not managed, the Sponsor may instruct the Trustee to sell Equity
Securities under certain limited circumstances. Pursuant to the
Indenture and with limited exceptions, the Trustee may sell any
securities or other property acquired in exchange for Equity Securities
such as those acquired in connection with a merger or other transaction.
If offered such new or exchanged securities or property, the Trustee
shall reject the offer. However, in the event such securities or
property are nonetheless acquired by a Trust, they may be accepted for
deposit in such Trust and either sold by the Trustee or held in the
Trust pursuant to the direction of the Sponsor (who may rely on the
advice of the Portfolio Supervisor). See "Rights of Unit Holders-How May
Equity Securities be Removed from a Trust?" Equity Securities, however,
will not be sold by a Trust to take advantage of market fluctuations or
changes in anticipated rates of appreciation or depreciation.
Whether or not the Equity Securities are listed on a national securities
exchange, the principal trading market for the Equity Securities may be
in the over-the-counter market. As a result, the existence of a liquid
trading market for the Equity Securities may depend on whether dealers
will make a market in the Equity Securities. There can be no assurance
that a market will be made for any of the Equity Securities, that any
market for the Equity Securities will be maintained or of the liquidity
of the Equity Securities in any markets made. In addition, a Trust may
be restricted under the Investment Company Act of 1940 from selling
Equity Securities to the Sponsor. The price at which the Equity
Securities may be sold to meet redemptions, and the value of a Trust,
will be adversely affected if trading markets for the Equity Securities
are limited or absent.
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 Equity Securities or the
general condition of the common stock market may worsen and the value of
the Equity Securities and therefore the value of the Units may decline.
The past market and earnings performance of the Equity Securities
included in the Trusts is not predictive of their future performance.
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
Page 24
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 a Trust 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 Equity Securities
in the Portfolio 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 stocks 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.
Certain of the Equity Securities in one or more of the Trusts are of
foreign issuers, and therefore, an investment in such a 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 Equity 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 Equity Securities included in the Trust, the Sponsor
believes that adequate information will be available to allow the
Portfolio Supervisor to provide portfolio surveillance.
Certain of the Equity Securities in one or more of the Trusts are in ADR
or GDR form. ADRs, which evidence American Depositary Receipts and GDRs,
which evidence Global Depositary Receipts, represent common stock
deposited with a custodian in a depositary. American Depositary Shares
and Global Depositary Shares (collectively, the "Depositary Receipts")
are issued by a bank or trust company to evidence ownership of
underlying securities issued by a foreign corporation. These instruments
may not necessarily be denominated in the same currency as the
securities into which they may be converted. For purposes of the
discussion herein, the terms ADR and GDR generally include American
Depositary Shares and Global Depositary Shares, respectively.
Depositary Receipts may be sponsored or unsponsored. In an unsponsored
facility, the depositary initiates and arranges the facility at the
request of market makers and acts as agent for the Depositary Receipts
holder, while the company itself is not involved in the transaction. In
a sponsored facility, the issuing company initiates the facility and
agrees to pay certain administrative and shareholder-related expenses.
Sponsored facilities use a single depositary and entail a contractual
relationship between the issuer, the shareholder and the depositary;
unsponsored facilities involve several depositaries with no contractual
relationship to the company. The depositary bank that issues Depositary
Receipts generally charges a fee, based on the price of the Depositary
Receipts, upon issuance and cancellation of the Depositary Receipts.
This fee would be in addition to the brokerage commissions paid upon the
acquisition or surrender of the security. In addition, the depositary
bank incurs expenses in connection with the conversion of dividends or
other cash distributions paid in local currency into U.S. dollars and
Page 25
such expenses are deducted from the amount of the dividend or
distribution paid to holders, resulting in a lower payout per underlying
shares represented by the Depositary Receipts than would be the case if
the underlying share were held directly. Certain tax considerations,
including tax rate differentials and withholding requirements, arising
from applications of the tax laws of one nation to nationals of another
and from certain practices in the Depositary Receipts market may also
exist with respect to certain Depositary Receipts. In varying degrees,
any or all of these factors may affect the value of the Depositary
Receipts compared with the value of the underlying shares in the local
market. In addition, the rights of holders of Depositary Receipts may be
different than those of holders of the underlying shares, and the market
for Depositary Receipts may be less liquid than that for the underlying
shares. Depositary Receipts are registered securities pursuant to the
Securities Act of 1933 and may be subject to the reporting requirements
of the Securities Exchange Act of 1934.
For the Equity Securities that are Depositary Receipts, currency
fluctuations will affect the U.S. dollar equivalent of the local
currency price of the underlying domestic share and, as a result, are
likely to affect the value of the Depositary Receipts and consequently
the value of the Equity Securities. The foreign issuers of securities
that are Depositary Receipts may pay dividends in foreign currencies
which must be converted into dollars. Most foreign currencies have
fluctuated widely in value against the United States dollar for many
reasons, including supply and demand of the respective currency, the
soundness of the world economy and the strength of the respective
economy as compared to the economies of the United States and other
countries. Therefore, for any securities of issuers (whether or not they
are in Depositary Receipt form) whose earnings are stated in foreign
currencies, or which pay dividends in foreign currencies or which are
traded in foreign currencies, there is a risk that their United States
dollar value will vary with fluctuations in the United States dollar
foreign exchange rates for the relevant currencies.
Unit holders will be unable to dispose of any of the Equity Securities
in a Portfolio, as such, and will not be able to vote the Equity
Securities. As the holder of the Equity 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.
What are the Equity Securities Selected for Communications Growth Trust,
Series 2?
Computer Networking
___________________
3Com Corporation, headquartered in Santa Clara, California, designs,
makes, markets and supports a wide range of global data networking
computer systems based on industry standards and an open systems
architecture. The company also offers integrated services, digital
network adapters, Internet-working products and integrated digital
remote access systems. The company's products are distributed and
serviced worldwide.
Ascend Communications, Inc., headquartered in Alameda, California,
develops, makes, markets, sells and supports a broad range of high-speed
digital wide area network access products that enable the company's
customers to build Internet access systems, extensions and enhancements
to corporate backbone networks, and videoconferencing and multimedia access
facilities. Internet access systems consist of point-of-presence (POP)
termination equipment for Internet service providers (ISPs) and remote
site Internet access equipment for Internet subscribers.
Bay Networks, Inc., headquartered in Santa Clara, California, develops,
makes, markets and supports a line of data networking products and
services which enable end users to build or enhance their data network
systems.
Cisco Systems, Inc., headquartered in San Jose, California, develops,
makes, sells and supports high performance internetworking systems that
link geographically dispersed local-area and wide-area networks to form
a single, seamless information infrastructure.
Communications Equipment
________________________
ADC Telecommunications, Inc., headquartered in Minnetonka, Minnesota,
designs, makes and markets transmission and enterprise networking
systems and connectivity products for use in fiber optic, twisted pair,
coaxial and wireless broadband networks. Products employ fiber optic,
hybrid fiber coax, wireless and traditional copper-based technologies.
ADTRAN, Inc., headquartered in Huntsville, Alabama, designs, develops,
makes, markets and services a broad range of high speed digital
transmission products utilized by telephone companies and corporate end-
users to implement advanced digital data services over existing
telephone networks.
Page 26
Aspect Telecommunications Corporation, headquartered in San Jose,
California, develops, makes, markets and supports call transaction
processing systems which can improve customer service and reduce
operating costs for companies that handle a high volume of telephone
calls to conduct sales, support, inquiry and other business transactions
with their customers.
Lucent Technologies, Inc., headquartered in Murray Hill, New Jersey, is
one of the world's leading designers, developers and manufacturers of
telecommunications systems, software and products. The company also is a
leading global marketer of business communications systems and computers.
Northern Telecom Ltd., headquartered in Brampton, Ontario, Canada makes
fully digital telecommunications switching equipment and communications
equipment and systems for business and residential use.
Pairgain Technologies, Inc., headquartered in Tustin, California,
designs, manufactures, markets and supports products that allow
telecommunications carriers and private networks to more efficiently
provide high speed digital service to end users over the large existing
infrastructure of unconditioned copper wires. This service, typically
delivered over T1 lines in North America and E1 lines in international
markets, enables high speed data transmission for applications such as
internet access, telecommuting, wide area networking and video
teleconferencing.
Tellabs, Inc., headquartered in Lisle, Illinois, designs, makes and
services voice and data transport and network access systems used by
public telephone companies, long-distance carriers, alternate service
providers, cellular and other wireless service providers, cable
operators, government agencies, utilities, and business end-users.
Communications Service
______________________
ALLTEL Corporation, headquartered in Little Rock, Arkansas, with
subsidiaries, provides wireline local and network access service,
wireless communications, wide-area paging and fiber optic-based long-
distance telephone service, information processing management services
and advanced applications software. The company also publishes telephone
directories for affiliates and other independent telephone companies.
Ameritech Corporation, headquartered in Chicago, Illinois, provides
advanced telecommunications services in Illinois, Indiana, Michigan,
Ohio, and Wisconsin, including local exchange and toll service, network
access and communications products; cellular and other wireless
services; cable TV; directory and electronic advertising services; and
on-line services.
BellSouth Corporation, headquartered in Atlanta, Georgia, provides
wireline telecommunications to approximately two-thirds of the
population and one-half of the territory within Alabama, Florida,
Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South
Carolina and Tennessee. The company also provides wireless and
international communications services and advertising and publishing
products.
Cable & Wireless plc (ADR), headquartered in London, England, operates
as an international provider of telecommunications and multimedia
communications services in over 50 countries including Australia, Hong
Kong, Japan, the United Kingdom and the United States.
Century Telephone Enterprises, Inc., headquartered in Monroe, Louisiana,
through subsidiaries, provides traditional local exchange telephone
service mainly in rural, suburban and small urban areas in 14 states,
with the largest customer bases located in Wisconsin, Louisiana,
Michigan, Ohio, Arkansas and Texas, and cellular telephone
communications service. The company also provides long distance,
operator, competitive access and interactive services in certain local
and regional markets, as well as certain printing and related services.
Compania de Telefonos de Chile SA (ADR), headquartered in Santiago,
Chile, provides local telephone service and to a lesser extent, domestic
long distance telephone services in Chile. The company also operates a
cellular telephone network and provides paging and trunking, public
telephone and cable television services, and equipment sales.
Loral Space & Communications Ltd., headquartered in New York, New York,
through affiliates, designs, makes and systems integrates
telecommunications, weather and direct broadcast satellites and is
building and preparing to operate a worldwide satellite-based digital
telecommunications system.
SBC Communications, Inc., headquartered in San Antonio, Texas, through
subsidiaries, provides local and long distance telephone service,
wireless communications, paging, Internet access, cable TV, directory
Page 27
advertising and publishing services. Markets served include Boston,
Chicago, St. Louis, and Washington, D.C., as well as the states of
California and Texas. Since the April 1, 1997 merger with Pacific
Telesis, it is now the second largest telecommunications company in the
United States, with over 31,400,000 access lines. The company serves
several of the country's largest metropolitan areas and selected markets
outside the United States, including Chile, France, Israel, Mexico,
South Africa, South Korea and Taiwan.
Telefonica de Espana SA (ADR), headquartered in Madrid,
Spain, is the exclusive supplier of voice telephone services in Spain
under a contract with the Spanish government. The company is also the
largest Spanish mobile communications operator in Spain; a leading
telecommunications operator in Latin America; and the world's second
largest owner of submarine cables.
Tel-Save Holdings, Inc., headquartered in New Hope, Pennsylvania,
provides long distance telecommunication services, including outbound
service, inbound toll-free 800 service and dedicated private line
services for data, primarily to small and medium-sized businesses
located throughout the United States. The company provides these
services mainly through contract tariffs with AT&T and generally markets
these services nationally through an established distribution network of
independent long distance and marketing companies known as "partitions,"
each of which has entered into a non-exclusive agreement with the
company. The company and its partitions market long distance services to
end users emphasizing the quality of the services provided on the AT&T long
distance network, the accuracy of AT&T billing, and pricing advantages.
WorldCom, Inc., headquartered in Jackson, Mississippi, through
subsidiaries, provides long distance and local products, 800 services,
calling cards, domestic and international private lines, broadband data
services, debit cards, conference calling, fax and data connections and
interconnection to Internet service providers.
Wireless Communications
_______________________
L.M. Ericsson AB (ADR), headquartered in Stockholm Sweden, provides
advanced systems, products and services for handling voice, data, image
and text in public and private wired and mobile telecommunications
networks, telecommunications power equipment, and telecommunications and
power cable.
Nokia Oy AB (ADR), headquartered in Helsinki, Finland, makes mobile
phones, computer monitors, multimedia network terminals and battery
chargers for mobile phones; satellite receivers; and video conferencing
equipment.
Vodafone Group plc (ADR), headquartered in Newbury, Berkshire, England,
provides mobile telecommunication services in 13 countries.
What are the Equity Securities Selected for Fundamental Value Trust
Series?
ADC Telecommunications, Inc., headquartered in Minnetonka, Minnesota,
designs, makes and markets transmission and enterprise networking
systems and connectivity products for use in fiber optic, twisted pair,
coaxial and wireless broadband networks. Products employ fiber optic,
hybrid fiber coax, wireless and traditional copper-based technologies.
Abbott Laboratories, headquartered in Abbott Park, Illinois, discovers,
develops, makes and sells a broad and diversified line of healthcare
products and services. The company's operations are comprised of two
principal segments: pharmaceutical and nutritional products and hospital
and laboratory products.
Air Express International Corporation, headquartered in Darien,
Connecticut, through subsidiaries, provides domestic and international
air freight forwarding services; ocean freight services; customs
brokerage clearance services in the United States and foreign countries;
and ancillary services.
Anchor Gaming, headquartered in Las Vegas, Nevada, develops exclusive
games which it markets to casinos and uses in its own gaming operations.
The company owns and operates casinos in Colorado.
Applied Materials, Inc., headquartered in Santa Clara, California,
develops, makes, sells and services semiconductor wafer fabrication
equipment and related spare parts worldwide. The company also supplies
critical dimension scanning electron microscope systems, and wafer and
reticle inspection systems.
Becton, Dickinson and Company, headquartered in Franklin Lakes, New
Jersey, makes and sells a broad line of medical supplies and devices, as
well as diagnostic systems used by healthcare professionals, medical
research institutions and the general public. The company's operations
consist of two worldwide businesses: medical supplies and devices, and
diagnostic systems.
Page 28
Carnival Corporation (Class A), headquartered in Miami, Florida,
operates the world's largest multiple-night cruise line under the names
"Carnival Cruise," "Holland America Line" and "Windstar Cruises";
markets sightseeing tours; and operates hotels under the name "Westmark
Hotels."
Clayton Homes, Inc., headquartered in Knoxville, Tennessee, makes,
sells, finances and insures low to medium priced single and multi-
sectioned manufactured homes, which are designed as permanent, primary
residences. The company also develops, owns and manages manufactured
housing communities.
HEALTHSOUTH Corporation, headquartered in Birmingham, Alabama, provides
outpatient and rehabilitative healthcare services through its national
network of outpatient and inpatient rehabilitation facilities,
outpatient surgery centers, medical centers and other healthcare
facilities.
IDEX Corporation, headquartered in Northbrook, Illinois, designs, makes
and markets a broad range of fluid handling and industrial products
serving a diverse customer base in the United States and internationally.
Lancaster Colony Corporation, headquartered in Columbus, Ohio, makes and
sells specialty foods, such as salad dressings, sauces, noodles, pastas,
snacks, desserts and frozen products; automotive accessories and
components; and glassware and candles.
Lear Corporation, headquartered in Southfield, Michigan, one of the
largest independent suppliers of automotive interior systems in the
world, supplies automotive interiors including seat systems, floor and
acoustic systems, door panels, headliners, and instrument panels. The
company's seating systems are shipped to customer assembly plants on a
just-in-time basis for installation in vehicles near the end of the
assembly process. The company's major customers are "General Motors,"
"Ford," "Fiat," "Chrysler," "Volvo," "Saab," "Volkswagen" and "BMW."
Leggett & Platt, Inc., headquartered in Carthage, Missouri, makes, sells
and distributes components and related products for bedding, furniture
and other furnishings; commercial fixtures, store displays, shelving and
other products for office and commercial use; and materials, equipment
and technologies for company operations and other manufacturers.
MICROS Systems, Inc., headquartered in Beltsville, Maryland, designs,
makes, supplies and services point-of-sale systems, property management
systems and central reservation systems software for hospitality
providers.
Nature's Sunshine Products, Inc., headquartered in Provo, Utah, makes
and markets nutritional and personal care products. Nutritional products
include herbs, beverages, vitamins, mineral and food supplements, and a
line of homeopathic remedies. Personal care products include natural
skin, hair and beauty care products.
Nautica Enterprises, Inc., headquartered in New York, New York, through
subsidiaries, designs, sources and sells fine quality men's sportswear,
outerwear and activewear with a distinctive active outdoor image which
is sold through better department store chains and specialty stores.
Network Associates, Inc., headquartered in Santa Clara, California,
develops, markets, distributes and supports network security and
management software products including anti-virus protection, as well as
client/server network management tools.
T. Rowe Price Associates, Inc., headquartered in Baltimore, Maryland,
serves as investment adviser to the T. Rowe Price Mutual Funds, other
sponsored investment products and institutional and individual private
accounts; and it provides certain administrative and shareholder
services to the Price Funds and other mutual funds.
R&B Falcon Corporation, headquartered in Houston, Texas, provides
contract drilling and workover services for the domestic and
international oil and gas industry. The company owns and operates the
largest fleet of barge drilling rigs in the world and the largest fleet
of mat-supported offshore drilling rigs in the U.S. Gulf of Mexico.
The Reynolds and Reynolds Company (Class A), headquartered in Dayton,
Ohio, makes and sells standard and custom business forms and systems
used by the automotive, healthcare and general business markets; and it
offers computer systems and services to the automotive and healthcare
market. The company also provides financing for its computer systems.
Roper Industries, Inc., headquartered in Bogart, Georgia, makes rotating
machinery control systems; industrial valve, control and measurement
products and vibration instrumentation; industrial pumps, dispense
systems, and flow metering products; and industrial testing and
analysis, digital imaging and microscopy specimen preparation/handling
products.
Page 29
SMART Modular Technologies, Inc., headquartered in Fremont, California,
designs, makes and markets memory modules, personal computer card
products and embedded processor modules primarily to leading original
equipment manufacturers in the computer, networking and
telecommunications industries.
Sun Microsystems, Inc., headquartered in Palo Alto, California, supplies
network computing products, including workstations, desktop systems, storage
subsystems, network switches, servers, software, microprocessors and a
full range of services and support. The company's software utilizes the
UNIX operating system.
Teradyne, Inc., headquartered in Boston, Massachusetts, makes electronic
test systems and software for use in the electronics industry, and
backplane connection systems for the military/aerospace,
telecommunications and computer industries.
Tidewater, Inc., headquartered in New Orleans, Louisiana, through
divisions, provides support services to the international offshore
petroleum industry through a large fleet of vessels operating on a
worldwide basis and natural gas and air compression equipment and
services to the energy industry, mainly in the United States.
What are the Equity Securities Selected for Insurance Growth Trust Series?
Financial Guarantee
___________________
Capital Re Corporation, headquartered in New York, New York, through
subsidiaries, reinsures financial guaranties of investment grade debt
obligations, concentrating on municipal bond insurance. The company also
reinsures financial guaranties of investment grade non-municipals; and
mortgage guaranty, trade credit and other specialty insurance lines.
CMAC Investment Corporation, headquartered in Philadelphia,
Pennsylvania, provides private mortgage insurance coverage in the United
States to residential mortgage lenders, including mortgage bankers,
mortgage brokers, commercial banks and savings institutions.
Enhance Financial Services Group, Inc., headquartered in New York, New
York, through subsidiaries, provides reinsurance of financial guaranties
of municipal and asset-backed debt obligations issued by monoline
financial guaranty insurers, and insures and reinsures various specialty
lines of business. Monoline financial guaranty insurers guaranty to the
holders of debt obligations the full and timely payment of principal and
interest.
MBIA, Inc., headquartered in Armonk, New York, through wholly-owned MBIA
Insurance Corporation, writes municipal bond insurance which provides an
unconditional and irrevocable guarantee of the payment of principal and
interest when due on insured municipal bonds. MBIA Insurance Corporation
also writes insurance for new issues of municipal bonds and for bonds
traded in the secondary market.
MGIC Investment Corporation, headquartered in Milwaukee, Wisconsin,
through subsidiaries, provides private mortgage insurance in the United
States to savings institutions, mortgage bankers, commercial banks,
mortgage brokers, credit unions and other lenders. The company also
provides various underwriting and contract services related to home
mortgage lending.
Life/Health
___________
AFLAC, Inc., headquartered in Columbus, Georgia, through subsidiaries,
writes supplemental health insurance, mainly limited to reimbursement
for medical, non-medical and surgical expenses of cancer. The company
also sells individual and group life, accident and health insurance.
Nationwide Financial Services, Inc. (Class A), headquartered in
Columbus, Ohio, offers long-term savings and retirement products to
retail and institutional customers throughout the United States.
Products offered include variable and fixed annuities, life insurance,
mutual funds, retirement products and administrative services.
ReliaStar Financial Corporation, headquartered in Minneapolis,
Minnesota, through subsidiaries, issues and distributes individual life
insurance and annuities, group life and health insurance, life and
health reinsurance; and it sells and manages mutual funds. The company
operates in four business segments: Individual Insurance, Employee
Benefits, Life and Health Reinsurance and Pension.
SunAmerica, Inc., headquartered in Los Angeles, California, through
subsidiaries, sells tax-deferred, long-term savings products for the pre-
Page 30
retirement market, including single premium insurance products, and
fixed and variable annuities. SunAmerica also provides broker-dealer
operations; retirement trust services; asset management; and premium
financing.
Multi-Line
___________
AEGON N.V. (American Registered Shares), headquartered in The Hague,
Netherlands, through subsidiaries, offers a full line of life, accident,
health and general insurance in the Netherlands, the United States and
Europe. The company also engages in non-insurance activities, mainly in
the area of financial services.
AXA-UAP (ADR), headquartered in Paris, France, through
subsidiaries, markets life insurance, property and casualty insurance
and reinsurance. The company also conducts asset management, investment
banking, securities trading, brokerage, real estate and other financial
services activities.
Allstate Corporation, headquartered in Northbrook, Illinois, through
subsidiaries, writes property-liability insurance, primarily private
passenger automobile and homeowners policies, and offers life insurance,
annuity and group pension products.
American International Group, Inc., headquartered in New York, New York,
provides a broad range of insurance and insurance-related activities and
financial services in the United States and abroad. The company also
owns and operates ski slopes and related facilities in Vermont.
CIGNA Corporation, headquartered in Philadelphia, Pennsylvania, provides
life and health insurance, retirement and employee benefits, property
and casualty insurance, asset management, managed care products and
services and individual financial services.
The Hartford Financial Services Group, Inc., headquartered in Hartford,
Connecticut, writes commercial property and casualty insurance, personal
automobile and homeowners coverages, a variety of life insurance plans,
and it reinsures third-party risks.
Horace Mann Educators Corporation, headquartered in Springfield,
Illinois, through subsidiaries, markets and underwrites personal lines
of property/casualty and life insurance and retirement annuities.
Old Republic International Corporation, headquartered in Chicago,
Illinois, through subsidiaries, writes property, liability, life,
disability, title and mortgage guaranty insurance in 50 states and Guam,
Puerto Rico, the Virgin Islands, Washington, D.C. and all Canadian
provinces.
Travelers Group, Inc., headquartered in New York, New York, through
subsidiaries, provides investment banking and securities brokerage
services; insurance services, including life, accident and health,
credit, property and casualty insurance and consumer finance services.
Zurich Group (ADR), headquartered in Zurich, Switzerland, is an
international insurance company that offers life and non-life insurance
products. The company provides life, automobile, property, accident,
sickness and general liability insurance to individuals and groups. The
company operates through branches and affiliate offices in Switzerland,
the European community, North America and elsewhere.
Property/Casualty
_________________
ALLIED Group, Inc., headquartered in Des Moines, Iowa, through
subsidiaries, operates a regional property-casualty insurance business
specializing in personal lines and small commercial lines. The company
uses independent agencies, exclusive agencies, and direct marketing to
sell products in central and western states.
The Chubb Corporation, headquartered in Warren, New Jersey, through
subsidiaries, writes property and casualty insurance, including personal
and commercial insurance coverage. The company also develops real
estate, mainly in New Jersey and Florida.
Everest Reinsurance Holdings, Inc., headquartered in Newark, New Jersey,
through subsidiaries, provides reinsurance to property/casualty insurers
in selected markets in the United States and in international markets.
The company also provides property and casualty insurance to
policyholders in the United States.
Fremont General Corporation, headquartered in Santa Monica, California,
through subsidiaries, writes, sells and services workers' compensation
and medical malpractice insurance, mainly in California and Illinois;
operates commercial finance and thrift and loan businesses; and provides
financial services.
Orion Capital Corporation, headquartered in New York, New York, through
subsidiaries, underwrites workers compensation insurance; professional
liability insurance for architects, engineers, accountants and lawyers;
non-standard commercial and personal automobile insurance; and other
lines of insurance.
Page 31
Progressive Corporation, headquartered in Mayfield Heights, Ohio,
through subsidiaries, provides personal automobile insurance and other
specialty property-casualty insurance and related services throughout
the United States and in Canada. The company also processes business for
involuntary plans and provides claim services to fleet owners and other
insurance companies.
What are the Equity Securities Selected for Internet Growth Trust,
Series 4?
Access/Information Providers
____________________________
America Online, Inc., headquartered in Dulles, Virginia, provides online
services to consumers in the United States, Canada and Europe, offering
subscribers a wide variety of services, including electronic mail,
conferencing, news, sports, Internet access, entertainment, weather,
stock quotes, software, computing support and online classes.
First Data Corporation, headquartered in Hackensack, New Jersey,
provides processing services to issuers of VISA and MasterCard, payment
instrument processing services to institutions and consumers, telephone
and information processing services, shareholder services, information
systems and data processing.
MindSpring Enterprises, Inc., headquartered in Atlanta, Georgia,
provides Internet access serving individual subscribers, including
individuals with little or no prior on-line experience.
Tel-Save Holdings, Inc., headquartered in New Hope,
Pennsylvania, provides long distance telecommunication services,
including outbound service, inbound toll-free 800 service and dedicated
private line services for data, primarily to small and medium-sized
businesses located throughout the United States. The company provides
these services mainly through contract tariffs with AT&T and generally
markets these services nationally through an established distribution
network of independent long distance and marketing companies known as
"partitions," each of which has entered into a non-exclusive agreement
with the company. The company and its partitions market long distance
services to end users emphasizing the quality of the services provided
on the AT&T long distance network, the accuracy of AT&T billing and
pricing advantages.
WorldCom, Inc., headquartered in Jackson, Mississippi, through
subsidiaries, provides long distance and local products, 800 services,
calling cards, domestic and international private lines, broadband data
services, debit cards, conference calling, fax and data connections and
interconnection to Internet service providers.
Computer Networking
____________________
3Com Corporation, headquartered in Santa Clara, California, designs,
makes, markets and supports a wide range of global data networking
computer systems based on industry standards and an open systems
architecture. The company also offers integrated services, digital
network adapters, Internet-working products and integrated digital
remote access systems. The company's products are distributed and
serviced worldwide.
Ascend Communications, Inc., headquartered in Alameda, California,
develops, makes, markets, sells and supports a broad range of high-speed
digital wide area network access products that enable the company's
customers to build Internet access systems, extensions and enhancements
to corporate backbone networks, and videoconferencing and multimedia
access facilities. Internet access systems consist of point-of-presence
(POP) termination equipment for Internet service providers (ISPs) and
remote site Internet access equipment for Internet subscribers.
Bay Networks, Inc., headquartered in Santa Clara, California, develops,
makes, markets and supports a line of data networking products and
services which enable end users to build or enhance their data network
systems.
Cisco Systems, Inc., headquartered in San Jose, California, develops,
makes, sells and supports high performance internet-working systems that
link geographically dispersed local-area and wide-area networks to form
a single, seamless information infrastructure.
Computers
_________
Compaq Computer Corporation, headquartered in Houston, Texas, makes and
markets desktop personal computers, portable computers, workstations,
communications products and tower PC servers and peripheral products
Page 32
that store and manage data in network environments. Products are
marketed mainly to business, home, government and education customers.
Products are sold directly to full-service computer specialty dealers
for resale to end-users.
Dell Computer Corporation, headquartered in Round Rock, Texas, designs,
develops, makes, sells, services and supports a broad range of personal
computers, including desktops, notebooks and servers compatible with
industry standards under the "Dell" brand name. The company also sells
software, peripheral equipment, and service and support programs.
Gateway 2000, Inc., headquartered in North Sioux City, South Dakota,
develops, makes, sells and supports a broad line of desktop and portable
personal computers for use by businesses, individuals, government
agencies and educational institutions.
Hewlett-Packard Company, headquartered in Palo Alto,
California, designs, makes and services equipment and systems for
measurement, computation and communications, including computer systems,
personal computers, printers, calculators, electronic test equipment,
medical electronic equipment, solid state components and instrumentation
for chemical analysis.
Sun Microsystems, Inc., headquartered in Palo Alto, California, supplies
network computing products, including workstations, desktop systems, storage
subsystems, network switches, servers, software, microprocessors and a
full range of services and support. The company's software utilizes the
UNIX operating system.
Semiconductors
______________
Intel Corporation, headquartered in Santa Clara, California, designs,
develops, makes and markets advanced microcomputer components and
related products at various levels of integration. Microcomputer
components are integrated circuits consisting of silicon-based
semiconductors etched with complex patterns of transistors.
SMART Modular Technologies, Inc., headquartered in Fremont, California,
designs, makes and markets memory modules, personal computer card
products and embedded processor modules primarily to leading original
equipment manufacturers in the computer, networking and
telecommunications industries.
Software
________
BMC Software, Inc., headquartered in Houston, Texas, develops, markets
and supports standard systems software products to enhance IBM's
mainframe database management, network management and data
communications software systems.
Computer Associates International, Inc., headquartered in Islandia, New
York, designs, develops, markets and supports standardized computer
software products for mainframe, midrange and desktop computers from
various hardware manufacturers.
Check Point Software Technologies, Ltd., headquartered in Redwood City,
California, develops, markets and supports network security software
products that enable connectivity with security and manageability. The
company's "Firewall-1" product provides scaleable application support,
an open and extensible architecture and integration of authentication,
encryption and remote access.
Microsoft Corporation, headquartered in Redmond, Washington, makes,
sells and licenses software products, including operating systems,
server applications, business and consumer products, Internet software
technologies and development tools. The company also markets personal
computer books and input devices and researches and develops software
technologies. The company is divided into four groups: the Platforms
Product Group, the Applications and Content Product Group, the Sales and
Support Group and the Operations Group.
Network Associates, Inc., headquartered in Santa Clara, California,
develops, markets, distributes and supports network security and
management software products, including anti-virus protection, as well
as client/server network management tools.
Oracle Corporation, headquartered in Redwood City, California, designs,
develops, markets and supports computer software products with a wide
variety of uses, including database management, network products,
application development, business intelligence productivity tools and
client server business applications.
PeopleSoft, Inc., headquartered in Pleasanton, California, develops
PeopleSoft Human Resource Management System, PeopleSoft Financials,
PeopleSoft Distribution and PeopleSoft Financials for Public Sector
Page 33
software products, which are portable and scaleable families of cross-
industry client/server enterprise-wide applications for use throughout
companies.
Sterling Commerce, Inc., headquartered in Dallas, Texas, provides
electronic commerce software products and network services that enable
businesses to participate in business-to-business electronic
communications and transactions. The company's tools also allow
customers to get product descriptions, technical specifications and
stock information. The company operates worldwide.
Wind River Systems, Inc., headquartered in Alameda, California,
develops, sells and supports advanced software development systems that
allow customers to create complex, real-time software applications for
embedded computers and enables customers to enhance product performance,
reduce research and development costs and shorten product development
cycles.
What are the Equity Securities Selected for Media & Entertainment Growth
Trust, Series 2?
Advertising
___________
The Interpublic Group of Companies, Inc., headquartered in New York, New
York, provides advertising agency and related services, mainly through
worldwide advertising agency systems, and also through association
arrangements with local agencies in various parts of the world. Other
activities include market research, sales promotion, product
development, direct marketing, telemarketing and other related services.
Omnicom Group, Inc., headquartered in New York, New York, through
subsidiaries and affiliates, conducts advertising agency businesses
using newspapers, magazines, radio and television as the media for
advertising for its clients in North America, the United Kingdom,
Continental Europe, the Middle East, Africa, Latin America, the Far
East, and Australia. The company offers its clients additional services
such as marketing consultation, consumer market research, design and
production of merchandising and sales promotion programs and materials,
direct mail advertising, corporate identification and public relations.
The company offers services to clients worldwide on a local, national,
pan-regional or global basis. According to the unaudited, industry-wide
figures published in 1996 by the trade journal Advertising Age, the
company was ranked as the second largest advertising agency group
worldwide.
Broadcasting
_____________
The Ackerley Group, Inc., headquartered in Seattle, Washington, through
subsidiaries, owns outdoor advertising sign faces; operates advertising
displays in domestic airports; owns and operates television and radio
stations; and owns and operates professional sports teams such as the
Seattle SuperSonics and the Seattle SeaDogs.
CBS Corporation, headquartered in Pittsburgh, Pennsylvania, operates
broadcasting, industrial and technology businesses. The company owns
CBS, Inc. and runs several radio and television stations and also serves
the mobile transport refrigeration, power generation, energy systems,
government operations and security and communications systems.
Chancellor Media Corporation, headquartered in Irving, Texas, owns and
operates radio stations in several markets. The company has a combined
weekly listener base of several million people.
Clear Channel Communications, Inc., headquartered in San Antonio, Texas,
owns or programs radio and television stations in domestic markets;
operates one of the largest outdoor advertising concerns in the United
States; and owns a 50% equity interest in the Australian Radio Network
Property, Ltd.
Emmis Broadcasting Corporation (Class A), headquartered in Indianapolis,
Indiana, owns and operates AM and FM radio stations serving Chicago,
Indianapolis, Los Angeles, New York and St. Louis. The company also
publishes magazines and various statistical publications for the radio
industry.
Jacor Communications, Inc., headquartered in Covington, Kentucky, owns
and/or operates radio stations in broadcast areas across the United
States.
Hearst-Argyle Television, Inc., headquartered in San
Antonio, Texas, owns and operates network-affiliated television stations
in Massachusetts, Pennsylvania, Maryland, Ohio, Wisconsin, Missouri,
Oklahoma, Rhode Island, Hawaii, Mississippi and Arkansas. The company
also owns and operates Hearst-Argyle Television Productions which
produces programming for cable networks and broadcast stations. The
company provides management services to television stations in Florida
and Missouri and radio stations in Maryland.
Page 34
PanAmSat Corporation, headquartered in Greenwich, Connecticut, operates
the world's first privately-owned international satellite communications
system. The company provides satellite services primarily to the
broadcasting and business communications markets and also provides
services to the long-distance telephone market.
Sinclair Broadcasting Group, Inc. (Class A), headquartered in Baltimore,
Maryland, owns and operates or provides programming services to
television stations in different markets and radio stations in
geographically diverse markets.
Cable Television
________________
Comcast Corporation (Class A), headquartered in Philadelphia,
Pennsylvania, owns and operates cable television systems in the United
States and the United Kingdom and develops, manages and operates
cellular telephone systems in portions of New Jersey, Pennsylvania,
Delaware and Illinois. The company also provides electronic retailing
services through QVC, Inc., a nationwide general merchandise retailer.
Liberty Media Corporation, headquartered in Englewood, Colorado,
acquires, owns and operates cable television systems and provides
satellite-delivered video entertainment, information and home shopping
programming services to various video distribution media, mainly cable
television systems. The company also has investments in cable and
telecommunications operations and television programming in certain
international markets, as well as investments in companies and joint
ventures involved in developing and providing programming for new
television and telecommunications technologies.
Tele-Communications Helvetica:xd0 TCI Group (Class A),
headquartered in Englewood, Colorado, constructs, acquires, owns and
operates cable television systems and provides satellite-delivered video
entertainment, information and home shopping programming services to
various video distribution media, mainly cable television systems. The
company also has investments in cable and telecommunications operations
and television programming in certain international markets, as well as
investments in companies and joint ventures involved in developing and
providing programming for new television and telecommunications
technologies.
USA Networks, Inc., headquartered in St. Petersburg, Florida, through
subsidiaries, sells consumer goods and services and engages in
television broadcasting.
US West Media Group, headquartered in Englewood, Colorado, provides
cable and telecommunications network businesses outside of the
Midwestern and Western United States and internationally; domestic and
international wireless communications network businesses; and domestic
and international directory and information services.
Entertainment
_____________
The Walt Disney Company, headquartered in Burbank, California, operates
as a diversified international entertainment company with operations
consisting of filmed entertainment, theme parks and resorts and consumer
products. The company also has broadcasting (including Capital
Cities/ABC, Inc.) and publishing operations.
Imax Corporation, headquartered in Mississauga, Ontario Canada, designs,
makes and markets proprietary projection and sound systems for theaters
using the IMAX system; produces and distributes films shown in the IMAX
theater network; operates theaters and designs and supplies motion
simulation theaters and produces films for movie rides.
King World Productions, Inc., headquartered in Los Angeles, California,
distributes feature length films and television programs to television
stations in television markets in the United States, Canada and other
foreign countries. Programs include "Wheel of Fortune," "Jeopardy!,"
"The Oprah Winfrey Show," "Inside Edition" and "American Journal."
News Corporation Limited (ADR), headquartered in Sydney, Australia,
prints and publishes newspapers, magazines and free standing inserts;
provides television broadcasting; produces and distributes films;
operates motion picture studios; and publishes books.
Time Warner, Inc., headquartered in New York, New York, publishes and
distributes magazines and books; produces and distributes recorded
music, motion pictures and television programming; owns and administers
music copyrights; owns and operates retail stores and theme parks; and
operates cable TV systems.
Page 35
Viacom, Inc. (Class B), headquartered in New York, New York, operates
satellite entertainment networks, television stations, and theme parks;
produces and distributes theatrical motion pictures and television
programming; operates videocassette rental and sales stores; and
publishes books and software products.
Media
_____
Gannett Company, Inc., headquartered in Arlington, Virginia, with
subsidiaries, publishes daily newspapers; owns and operates television
and radio stations; operates cable television systems in several states;
and provides marketing, commercial printing, a newswire service, data
services, news programming and alarm security services.
Knight Ridder, headquartered in Miami, Florida, publishes both daily and
non-daily newspapers and provides news and information services,
electronic retrieval services, news, graphics and photo services.
Tribune Company, headquartered in Chicago, Illinois, publishes daily
newspapers and community publications in several states; operates
television and radio stations; provides television program production
and syndication; owns the Chicago Cubs; and publishes educational
materials.
What are the Equity Securities Selected for Medical Growth Trust Series?
Medical Devices
_______________
Ballard Medical Products, headquartered in Draper, Utah, makes
disposable medical products, including endoscopic devices and
accessories and an endotracheal suctioning device. Other products
include a line of portable and stationary foam soap products, surgical
masks, feeding tubes, catheters, and gastrointestinal products.
Biomet, Inc., headquartered in Warsaw, Indiana, and subsidiaries, makes
and sells reconstructive and trauma devices, electrical bone growth
stimulators, orthopedic support devices, operating room supplies,
powered surgical instruments, general surgical instruments, arthroscopy
products and craniomaxillofacial products.
Boston Scientific Corporation, headquartered in Natick, Massachusetts,
makes medical devices which are used by physicians to perform less
invasive medical procedures. Products are used in a broad range of
interventional medical specialties, including cardiology,
gastroenterology, pulmonary medicine, radiology, urology and vascular
surgery.
DePuy, Inc., headquartered in Warsaw, Indiana, develops, makes and sells
orthopedic joint implants (mainly hips, knees and shoulders), spinal
implants, related surgical instruments, trauma products and sports
medicine soft goods.
Medtronic, Inc., headquartered in Minneapolis, Minnesota, makes and
sells implantable and interventional therapies, including implantable
pacemaker systems, tachyarrhythmia management devices and ablation
systems; heart valves; balloon and guiding catheters; stents;
implantable neurostimulation and drug delivery systems; and perfusion
systems. Perfusion systems include blood oxygenators, centrifugal blood
pumps, cannulae products, autotransfusion, blood monitoring systems and
minimally invasive cardiac surgery products.
Stryker Corporation, headquartered in Kalamazoo, Michigan, develops,
makes and markets specialty surgical and medical products, including
orthopaedic implants, powered surgical instruments, endoscopic systems
and patient care and handling equipment for the global market. The
company also provides physical therapy services in the U.S. Matsumoto
Medical Instruments, Inc., subsidiary, is one of the largest
distributors of medical devices in Japan.
Theragenics Corporation, headquartered in Norcross, Georgia, makes and
markets therapeutic radiological pharmaceuticals and devices for use
primarily in the treatment of cancer.
Medical Products
________________
Arterial Vascular Engineering, Inc., headquartered in Santa Rosa,
California, designs, develops, makes and markets a variety of stent
systems and balloon angioplasty catheters for the treatment of coronary
artery disease.
Becton, Dickinson and Company, headquartered in Franklin Lakes, New
Jersey, makes and sells a broad line of medical supplies and devices, as
well as diagnostic systems used by healthcare professionals, medical
Page 36
research institutions and the general public. The company's operations
consist of two worldwide businesses: medical supplies and devices, and
diagnostic systems.
DENTSPLY International, Inc., headquartered in York, Pennsylvania,
designs, develops, makes and markets dental consumable and laboratory
products and dental equipment.
Johnson & Johnson, headquartered in New Brunswick, New Jersey, makes and
sells pharmaceuticals, personal healthcare products, medical and
surgical equipment and contact lenses.
Life Technologies, Inc., headquartered in Rockville, Maryland, develops,
makes and supplies products used in life sciences research and the
commercial manufacture of genetically engineered products. The company's
products include sera, cell growth media, biochemicals, enzymes and
other biological products necessary for recombinant DNA procedures.
STERIS Corporation, headquartered in Mentor, Ohio, develops, makes and
markets infection prevention, contamination control and surgical support
systems, products and technologies for healthcare, scientific, research
and industrial customers worldwide.
Sybron International Corporation, headquartered in Milwaukee, Wisconsin
develops, makes and markets value-added products for the laboratory and
professional orthodontic and dental markets in the United States and
abroad. Products include reusable and disposable plastic labware;
microscope slides; restorative and impression materials; and preventive
products.
Pharmaceuticals/Biotech
______________________
Abbott Laboratories, headquartered in Abbott Park, Illinois, discovers,
develops, makes and sells a broad and diversified line of healthcare
products and services. The company's operations are comprised of two
principal segments: pharmaceutical and nutritional products and hospital
and laboratory products.
Amgen, Inc., headquartered in Thousand Oaks, California, a global
biotechnology concern, develops, makes and markets human therapeutics
based on advanced cellular and molecular biology, including a protein
that stimulates red blood cell production and a protein that stimulates
white blood cell production.
BioChem Pharma, Inc., headquartered in Laval, Quebec, Canada, researches
and develops therapeutic products and researches, develops, makes and
sells vaccine and diagnostic products for a broad range of infectious
and other diseases.
Bristol-Myers Squibb Company, headquartered in New York, New
York, through divisions and subsidiaries, produces and distributes
pharmaceutical and non-prescription health products, toiletries and
beauty aids and medical devices.
Dura Pharmaceticals, Inc., headquartered in San Diego, California,
markets and develops prescription pharmaceuticals, drug delivery and
monitoring systems for the treatment of asthma, hay fever, chronic
obstructive pulmonary disease, the common cold and other respiratory
illnesses. The company also operates a mail service pharmacy.
Genzyme Corporation, headquartered in Cambridge, Massachusetts, through
divisions, develops and markets specialty therapeutic, surgical and
diagnostic products, pharmaceuticals and genetic diagnostic services;
and it develops, makes and markets biological products for the treatment
of cartilage damage, severe burns, chronic skin ulcers and
neurodegenerative diseases.
ICN Pharmaceuticals, Inc., headquartered in Costa Mesa, California,
develops, makes and sells pharmaceutical and nutritional products,
research chemicals and diagnostic products.
IDEC Pharmarceuticals Corporation, headquartered in San Diego,
California, develops products for the long-term management of immune
system cancers and autoimmune and inflammatory diseases. The company's
lead immune system cancer and rheumatoid arthritis products are
genetically engineered to combat disease through the patient's immune
system.
Jones Medical Industries, Inc., headquartered in St. Louis, Missouri,
makes and sells pharmaceuticals, including products that serve the
thyroid treatment and the critical care segments of the healthcare
industry, and nutritional supplements, including vitamins, minerals and
anti-oxidants.
Medicis Pharmaceutical Corporation, headquartered in Phoenix, Arizona,
develops and markets products and technologies in the area of
dermatology, including four ESOTERICA over-the-counter fade creams, a
moisturizer, DYNACIN, TRIAZ, THERAMYCIN Z, BENZASHAVE, THERAPLEX
emollient products and shampoos and ONYPLEX.
PAREXEL International Corporation, headquartered in Waltham,
Massachusetts, provides clinical research and development services to
the worldwide pharmaceutical, biotechnology and medical device industries.
Page 37
The Sponsor has obtained the foregoing company descriptions from sources
it deems reliable. The Sponsor has not independently verified the
provided information either in terms of accuracy or completeness.
What are Some Additional Considerations for Investors?
Investors should be aware of certain other considerations before making
a decision to invest in the Trusts.
The value of the Equity Securities will fluctuate over the life of a
Trust and may be more or less than the price at which they were
deposited in such Trust. The Equity Securities may appreciate or
depreciate in value (or pay dividends) depending on the full range of
economic and market influences affecting these 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 notice
that any Equity Security will not be delivered ("Failed Contract
Obligations") to a Trust, the Sponsor is authorized under the Indenture
to direct the Trustee to acquire other Equity Securities ("Replacement
Securities"). Any Replacement Security will be identical to those which
were the subject of the failed contract. The Replacement Securities must
be purchased within 20 days after delivery of the notice of a failed
contract and the purchase price may not exceed the amount of funds
reserved for the purchase of the Failed Contract Obligations.
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 Contract Obligations to all Unit holders of
a Trust and the Trustee will distribute the principal attributable to
such Failed Contract Obligations 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 a Trust. In addition,
Unit holders should be aware that, at the time of receipt of such
principal, they may not be able to reinvest such proceeds in other
securities at a yield equal to or in excess of the yield which such
proceeds would have earned for Unit holders of a Trust.
The Indenture also authorizes the Sponsor to increase the size of a
Trust and the number of Units thereof by the deposit of additional
Equity Securities, or cash (including a letter of credit) with
instructions to purchase additional Equity Securities, in such Trust and
the issuance of a corresponding number of additional Units. If the
Sponsor deposits cash, existing and new investors could experience a
dilution of their investments and a reduction in anticipated income
because of fluctuations in the prices of the Equity Securities between
the time of the cash deposit and the actual purchase of the Equity
Securities and because the Trusts will pay the brokerage fees associated
therewith.
Each Trust consists of the Equity Securities listed under "Schedule of
Investments" for each Trust (or contracts to purchase such Securities)
as may continue to be held from time to time in such Trust and any
additional Equity Securities acquired and held by such Trust pursuant to
the provisions of the Indenture (including provisions with respect to
deposits into such Trust of Equity Securities in connection with the
issuance of additional Units).
Once all of the Equity Securities in a Trust are acquired, the Trustee
will have no power to vary the investments of such Trust, i.e., the
Trustee will have no managerial power to take advantage of market
variations to improve a Unit holder's investment, and may dispose of
Equity Securities only under limited circumstances. See "Rights of Units
Holders-How May Equity Securities be Removed from a Trust?"
Like other investment companies, financial and business organizations
and individuals around the world, the Trusts could be adversely affected
if the computer systems used by the Sponsor, Evaluator, Portfolio
Supervisor or Trustee or other service providers to the Trusts do not
properly process and calculate date-related information and data
involving dates of January 1, 2000 and thereafter. This is commonly
known as the "Year 2000 Problem." The Sponsor, Evaluator, Portfolio
Supervisor 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 each 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 the Trusts.
The Year 2000 Problem is expected to impact corporations, which may
include issuers of the Equity Securities contained in the Trusts to
varying degrees based upon various factors, including, but not limited
Page 38
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 Equity Securities contained in the
Trusts.
To the best of the Sponsor's knowledge, there is no litigation pending
as of the Initial Date of Deposit in respect of any Equity Security
which might reasonably be expected to have a material adverse effect on
a Trust. At any time after the Initial Date of Deposit, litigation may
be instituted on a variety of grounds with respect to the Equity
Securities. The Sponsor is unable to predict whether any such litigation
will be instituted, or if instituted, whether such litigation might have
a material adverse effect on a Trust.
Legislation. From time to time Congress considers proposals to reduce
the rate of the dividends-received deductions. Enactment into law of a
proposal to reduce the rate would adversely affect the after-tax return
to investors who can take advantage of the deduction. Unit holders are
urged to consult their own tax advisers. Further, at any time after the
Initial Date of Deposit, legislation may be enacted that could
negatively affect the Equity Securities in a Trust or the issuers of the
Equity Securities. Changing approaches to regulation, particularly with
respect to any of the industry sectors represented in a Trust, 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 the Trusts or will not impair the
ability of the issuers of the Equity Securities to achieve their
business goals.
PUBLIC OFFERING
How is the Public Offering Price Determined?
Units are offered at the Public Offering Price. During the initial
offering period, the Public Offering Price is based on the aggregate
underlying value of the Equity Securities in a Trust (generally
determined by the closing sale prices of listed Equity Securities and
the ask prices of over-the-counter traded Equity Securities), plus or
minus cash, if any, in the Income and Capital Accounts of a Trust, plus
an initial sales charge equal to the difference between the maximum
sales charge of 4.5% of the Public Offering Price and the maximum
remaining deferred sales charge, initially $.35 per Unit. Commencing on
November 20, 1998, and on the twentieth day of each month thereafter (or
if such date is not a business day, on the preceding business day)
through March 19, 1999, a deferred sales charge of $.07 will be assessed
per Unit per month. Units purchased subsequent to the initial deferred
sales charge payment but still during the initial offering period will
be subject to the initial sales charge and the remaining deferred sales
charge payments not yet collected. The deferred sales charge will be
paid from funds in the Income and/or Capital Accounts, if sufficient, or
from the periodic sale of Equity Securities. The total maximum sales
charge assessed to Unit holders on a per Unit basis will be 4.5% of the
Public Offering Price (equivalent to 4.545% of the net amount invested,
exclusive of the deferred sales charge).
During the initial offering period, the Sponsor's Repurchase Price is
based on the aggregate underlying value of the Equity Securities in a
Trust (generally determined by the closing sale prices of listed Equity
Securities and the ask prices of over-the-counter traded Equity
Securities), plus or minus cash, if any, in the Income and Capital
Accounts of a Trust divided by the number of Units of a Trust
outstanding, reduced by the deferred sales charge not yet paid. For
secondary market sales after the completion of the deferred sales charge
period, the Public Offering Price is also based on the aggregate
underlying value of the Equity Securities in a Trust (generally
determined by the closing sale prices of listed Equity Securities and
the bid prices of over-the-counter traded Equity Securities), plus or
minus cash, if any, in the Income and Capital Accounts of a Trust, plus
a one-time initial sales charge of 4.5% of the Public Offering Price
(equivalent to 4.712% of the net amount invested) divided by the number
of outstanding Units of a Trust and will be reduced by 1/2 of 1% on each
subsequent April 30, commencing April 30, 1999 to a minimum sales charge
of 3.0%.
The minimum amount which an investor may purchase of a Trust is $1,000
($500 for Individual Retirement Accounts or other retirement plans). The
applicable sales charge for the Trusts for both primary and secondary
market sales is reduced by a discount as indicated below for aggregate
volume purchases of the Trusts (except for sales made pursuant to a
"wrap fee account" or similar arrangements as set forth below):
Page 39
<TABLE>
<CAPTION>
Primary and Secondary
_____________________
Percent of Percent of
Dollar Amount of Transaction Offering Net Amount
at Public Offering Price* Price Invested
____________________________ __________ __________
<S> <C> <C>
$ 50,000 but less than $100,000 0.25% 0.2506%
$100,000 but less than $250,000 0.50% 0.5025%
$250,000 but less than $500,000 1.00% 1.0101%
$500,000 or more 2.00% 2.0408%
___________
<FN>
* The breakpoint sales charges are also applied on a Unit basis
utilizing a breakpoint equivalent in the above table of $10 per Unit and
will be applied on whichever basis is more favorable to the investor.
The breakpoints will be adjusted to take into consideration purchase
orders stated in dollars which cannot be completely fulfilled due to the
requirement that only whole Units be issued.
</FN>
</TABLE>
Any such reduced sales charge shall be the responsibility of the selling
broker/dealer, bank or other selling agent. The reduced sales charge
structure will apply on all purchases of Units of a Trust by the same
person on any one day from any one broker/dealer, bank or other selling
agent. An investor may aggregate purchases of Units of Trusts contained
in this Prospectus and other trusts sponsored by Nike Securities L.P.
which are currently in the initial offering period and which have
substantially the same sales load and years to maturity as the Trusts
for purposes of qualifying for volume purchase discounts listed above.
Unit holders of other unit investment trusts in which the Sponsor acted
as sole Principal Underwriter and which at the time of their creation
had substantially the same sales load and approximately a five-year term
("Eligible Sector Trusts") may utilize their redemption or termination
proceeds from the Eligible Sector Trusts to acquire Units of the Trusts
during the initial offering period subject only to the remaining
deferred sales charge to be collected on such Units. Unit holders who
redeem Units of the Eligible Sector Trusts should note that they will be
assessed the amount of any remaining deferred sales charges on such
units at the time of redemption. Additionally, Units purchased in the
name of the spouse of a purchaser or in the name of a child of such
purchaser under 21 years of age will be deemed, for the purposes of
calculating the applicable sales charge, to be additional purchases by
the purchaser. The reduced sales charges will also be applicable to a
trustee or other fiduciary purchasing securities for a single trust
estate or single fiduciary account. The purchaser must inform the
broker/dealer, bank or other selling agent of any such combined purchase
prior to the sale in order to obtain the indicated discount. In
addition, with respect to the employees, officers and directors
(including their immediate family members, defined as spouses, children,
grandchildren, parents, grandparents, siblings, mothers-in-law, fathers-
in-law, sons-in-law and daughters-in-law, and trustees, custodians or
fiduciaries for the benefit of such persons) of the Sponsor and
broker/dealers, banks or other selling agents and their subsidiaries and
vendors providing services to the Sponsor, Units may be purchased at the
Public Offering Price less the concession the Sponsor typically allows
to dealers and other selling agents.
Units may be purchased in the primary or secondary market at the Public
Offering Price less the concession the Sponsor typically allows to
dealers and other selling agents (see "Public Offering-How are Units
Distributed?") for purchases by investors who purchase Units through
registered investment advisers, certified financial planners or
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.
Had the Units of the Trusts been available for sale on the business day
prior to the Initial Date of Deposit, the Public Offering Price would
have been as indicated in "Summary of Essential Information." The Public
Offering Price of Units on the date of the prospectus or during the
initial offering period may vary from the amount stated under "Summary
of Essential Information" in accordance with fluctuations in the prices
of the underlying Equity Securities. During the initial offering period,
the aggregate value of the Units of a Trust shall be determined on the
basis of the aggregate underlying value of the Equity Securities therein
plus or minus cash, if any, in the Income and Capital Accounts of a
Trust. The aggregate underlying value of the Equity Securities during
the initial offering period will be determined in the following manner:
if the Equity Securities are listed, this evaluation is generally based
on the closing sale prices on that exchange (unless it is determined
that these prices are inappropriate as a basis for valuation) or, if
there is no closing sale price on that exchange, at the closing ask
prices. If the Equity Securities are not so listed or, if so listed and
Page 40
the principal market therefor is other than on the exchange, the
evaluation shall generally be based on the current ask prices on the
over-the-counter market (unless it is determined that these prices are
inappropriate as a basis for evaluation). If current ask prices are
unavailable, the evaluation is generally determined (a) on the basis of
current ask prices for comparable securities, (b) by appraising the
value of the Equity Securities on the ask side of the market or (c) by
any combination of the above.
After the completion of the initial offering period, the secondary
market Public Offering Price will be equal to the aggregate underlying
value of the Equity Securities therein, plus or minus cash, if any, in
the Income and Capital Accounts of a Trust plus the applicable sales
charge. The aggregate underlying value of the Equity Securities for
secondary market sales is calculated in the same manner as described
above for sales made during the initial offering period with the
exception that bid prices are used instead of ask prices.
Although payment is normally made three business days following the
order for purchase (the "date of settlement"), payment may be made prior
thereto. A person will become owner of the Units on the date of
settlement provided payment has been received. Cash, if any, made
available to the Sponsor prior to the date of settlement for the
purchase of Units may be used in the Sponsor's business and may be
deemed to be a benefit to the Sponsor, subject to the limitations of the
Securities Exchange Act of 1934. Delivery of Certificates representing
Units so ordered will be made three business days following such order
or shortly thereafter. See "Rights of Unit Holders-How May Units be
Redeemed?" for information regarding the ability to redeem Units ordered
for purchase.
How are Units Distributed?
During the initial offering period (i) for Units issued on the Initial
Date of Deposit and (ii) for additional Units issued after such date as
additional Equity Securities or cash are deposited by the Sponsor, Units
will be distributed to the public at the then current Public Offering
Price. The initial offering period may be up to approximately 360 days.
During such period, the Sponsor may deposit additional Equity Securities
or cash in a Trust and create additional Units. Units reacquired by the
Sponsor during the initial offering period (at prices based upon the
aggregate underlying value of the Equity Securities in a Trust plus or
minus a pro rata share of cash, if any in the Income and Capital
Accounts of such Trust) may be resold at the then current Public
Offering Price. Upon the termination of the initial offering period,
unsold Units created or reacquired during the initial offering period
will be sold or resold at the then current Public Offering Price.
Upon completion of the initial offering, Units repurchased in the
secondary market (see "Public Offering-Will There be a Secondary
Market?") may be offered by this prospectus at the secondary market
public offering price determined in the manner described above.
It is the intention of the Sponsor to qualify Units of the Trusts for
sale in a number of states. Sales initially will be made to dealers and
other selling agents at prices which represent a concession or agency
commission of 3.2% of the Public Offering Price, and, for secondary
market sales, 3.2% of the Public Offering Price (or 65% of the then
current maximum sales charge after April 30, 1999). Dealers and other
selling agents will be allowed a concession or agency commission on the
sale of Units purchased with redemption or termination proceeds from
Eligible Sector Trusts equal to (i) $.22 per Unit on Units sold subject
to a deferred sales charge of $.35 per Unit or (ii) 63% of the then
current maximum remaining deferred sales charge on Units sold subject to
a deferred sales charge of less than $.35 per Unit. Volume concessions
or agency commissions of an additional 0.30% of the Public Offering
Price on all purchases of Units of the Trusts will be given to any
broker/dealer or bank who has aggregate purchases of Trust Units from
the Sponsor on the Initial Date of Deposit of at least $100,000 of the
Trusts or purchases $250,000 of any one of such Trusts on any day
thereafter. In addition, dealers and other selling agents will receive
an additional volume concession or agency commission with respect to
sales of Units of each individual Trust in the amounts set forth below:
Page 41
Additional
Total Sales per Trust Concession
_____________________ __________
$1,000,000 but less than $2,000,000 .10%
$2,000,000 but less than $3,000,000 .15%
$3,000,000 but less than $10,000,000 .20%
$10,000,000 or more .30%
Effective on each April 30, commencing April 30, 1999, the sales charge
will be reduced by 1/2 of 1% to a minimum sales charge of 3.0%. However,
resales of Units of a Trust by such dealers and other selling agents to
the public will be made at the Public Offering Price described in the
prospectus. The Sponsor reserves the right to change the amount of the
concession or agency commission from time to time. Certain commercial
banks may be making Units of a Trust 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 indicated above.
Under the Glass-Steagall Act, banks are prohibited from underwriting
Trust Units; however, the Glass-Steagall Act does permit certain agency
transactions and the banking regulators have not indicated that these
particular agency transactions are not permitted under such Act. In
Texas and in certain other states, any banks making Units available must
be registered as broker/dealers under state law.
From time to time the Sponsor may implement programs under which
broker/dealers, banks or other selling agents of a Trust may receive
nominal awards from the Sponsor for each of their registered
representatives who have sold a minimum number of UIT Units during a
specified time period. In addition, at various times the Sponsor may
implement other programs under which the sales force of a broker/dealer,
bank or other selling agent may be eligible to win other nominal awards
for certain sales efforts, or under which the Sponsor will reallow to
any such dealer that sponsors sales contests or recognition programs
conforming to criteria established by the Sponsor, or participates in
sales programs sponsored by the Sponsor, an amount not exceeding the
total applicable sales charges on the sales generated by such person at
the public offering price during such programs. Also, the Sponsor in its
discretion may from time to time pursuant to objective criteria
established by the Sponsor pay fees to qualifying dealers for certain
services or activities which are primarily intended to result in sales
of Units of a Trust. Such payments are made by the Sponsor out of its
own assets, and not out of the assets of a Trust. These programs will
not change the price Unit holders pay for their Units or the amount that
the Trusts will receive from the Units sold.
The Sponsor may from time to time in its advertising and sales materials
compare the then current estimated returns on the Trusts and returns
over specified periods on other similar trusts sponsored by Nike
Securities L.P. with returns on other taxable investments such as
corporate or U.S. Government bonds, bank CDs and money market accounts
or money market funds, each of which has investment characteristics
that may differ from those of the Trusts. U.S. Government bonds,
for example, are backed by the full faith and credit of the U.S.
Government and bank CDs and money market accounts are insured by an
agency of the federal government. Money market accounts and money market
funds provide stability of principal, but pay interest at rates that
vary with the condition of the short-term debt market. The investment
characteristics of the Trusts are described more fully elsewhere in this
Prospectus.
Information on percentage changes in the dollar value of Units, on the
basis of changes in Unit price may be included from time to time in
advertisements, sales literature, reports and other information
furnished to current or prospective Unit holders. Total return figures
are not averaged, and may not reflect deduction of the sales charge,
which would decrease the return. Average annualized return figures
reflect deduction of the maximum sales charge. No provision is made for
any income taxes payable.
Past performance may not be indicative of future results. Each Trust's
portfolio is not managed. Unit price and return fluctuate with the value
of the common stocks in a Trust's portfolio, so there may be a gain or
loss when Units are sold.
Each Trust's performance may be compared to performance on a total
return basis with the Dow Jones Industrial Average, the S&P 500
Composite Stock Price Index, or performance data from Lipper Analytical
Services, Inc. and Morningstar Publications, Inc. or from publications
such as Money, The New York Times, U.S. News and World Report, Business
Week, Forbes or Fortune. As with other performance data, performance
comparisons should not be considered representative of a Trust's
relative performance for any future period.
Page 42
What are the Sponsor's Profits?
The Sponsor of the Trusts will receive a gross sales commission equal to
4.5% of the Public Offering Price of the Units (equivalent to 4.545% of
the net amount invested, exclusive of the deferred sales charge), less
any reduced sales charge described under "Public Offering-How is the
Public Offering Price Determined?" See "Public Offering-How are Units
Distributed?" for information regarding the receipt of additional
concessions available to dealers and other selling agents. In addition,
the Sponsor may 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 Equity Securities to the Trusts (which is based
on the Evaluator's determination of the aggregate offering price of the
underlying Equity Securities of such Trust on the Initial Date of
Deposit as well as subsequent deposits) and the cost of such Equity
Securities to the Sponsor. See Note (2) of "Schedule of Investments" for
each Trust. During the initial offering period, the dealers and other
selling agents also may realize profits or sustain losses as a result of
fluctuations after the Initial Date of Deposit in the Public Offering
Price received by the dealers and other selling agents upon the sale of
Units.
In maintaining a market for the Units, the Sponsor will also 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 (which price includes a sales charge of 4.5% subject to reduction
beginning April 30, 1999) or redeemed. The secondary market public
offering price of Units may be greater or less than the cost of such
Units to the Sponsor.
Will There be a Secondary Market?
After the initial offering period, although not obligated to do so, the
Sponsor intends to maintain a market for the Units and continuously
offer to purchase Units at prices, subject to change at any time, based
upon the aggregate underlying value of the Equity Securities in a Trust
plus or minus cash, if any, in the Income and Capital Accounts of such
Trust. All expenses incurred in maintaining a secondary market, other
than the fees of the Evaluator and the costs of the Trustee in
transferring and recording the ownership of Units, will be borne by the
Sponsor. If the supply of Units exceeds demand, or for some other
business reason, the Sponsor may discontinue purchases of Units at such
prices. IF A UNIT HOLDER WISHES TO DISPOSE OF HIS OR HER UNITS, HE OR
SHE SHOULD INQUIRE OF THE SPONSOR AS TO CURRENT MARKET PRICES PRIOR TO
MAKING A TENDER FOR REDEMPTION TO THE TRUSTEE. 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.
RIGHTS OF UNIT HOLDERS
How is Evidence of Ownership Issued and Transferred?
The Trustee is authorized to treat as the record owner of Units that
person who is registered as such owner on the books of the Trustee.
Ownership of Units may be evidenced by registered certificates executed
by the Trustee and the Sponsor. Delivery of certificates representing
Units ordered for purchase is normally made three business days
following such order or shortly thereafter. Certificates are
transferable by presentation and surrender to the Trustee properly
endorsed or accompanied by a written instrument or instruments of
transfer. Certificates to be redeemed must be properly endorsed or
accompanied by a written instrument or instruments of transfer. A Unit
holder must sign exactly as his name appears on the face of the
certificate with the signature guaranteed by a participant in the
Securities Transfer Agents Medallion Program ("STAMP") or such other
signature guaranty program in addition to, or in substitution for,
STAMP, as may be accepted by 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. Record ownership
may occur before settlement.
Certificates will be issued in fully registered form, transferable only
on the books of the Trustee in denominations of one Unit or any multiple
thereof, numbered serially for purposes of identification.
Unit holders may elect to hold their Units in uncertificated form. The
Trustee will maintain an account for each such Unit holder and will
Page 43
credit each such account with the number of Units purchased by that Unit
holder. Within two business days of the issuance or transfer of Units
held in uncertificated form, the Trustee will send to the registered
owner of Units a written initial transaction statement containing a
description of their respective Trust; the number of Units issued or
transferred; the name, address and taxpayer identification number, if
any, of the new registered owner; a notation of any liens and
restrictions of the issuer and any adverse claims to which such Units
are or may be subject or a statement that there are no such liens,
restrictions or adverse claims; and the date the transfer was
registered. Uncertificated Units are transferable through the same
procedures applicable to Units evidenced by certificates (described
above), except that no certificate need be presented to the Trustee and
no certificate will be issued upon the transfer unless requested by the
Unit holder. A Unit holder may at any time request the Trustee to issue
certificates for Units.
Although no such charge is now made or contemplated, a Unit holder may
be required to pay $2.00 to the Trustee per certificate reissued or
transferred and to pay any governmental charge that may be imposed in
connection with each such transfer or exchange. For new certificates
issued to replace destroyed, stolen or lost certificates, the Unit
holder may be required to furnish indemnity satisfactory to the Trustee
and pay such expenses as the Trustee may incur. Mutilated certificates
must be surrendered to the Trustee for replacement.
How are Income and Capital Distributed?
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 Unit holders of record on the preceding Income Distribution Record
Date. See "Summary of Essential Information." 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. The pro
rata share of cash in the Capital Account of a Trust will be computed as
of the fifteenth day of each month. Proceeds received on the sale of any
Equity Securities in a Trust, to the extent not used to meet redemptions
of Units or pay expenses, will, however, be distributed on the last day
of each month to Unit holders of record on the fifteenth day of such
month if the amount available for distribution equals at least $1.00 per
100 Units. 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). Notwithstanding,
distributions of funds in the Capital Account, if any, will be made on
the last day of each December to Unit holders of record as of December
15. See "What is the Federal Tax Status of Unit Holders?"
It is anticipated that the deferred sales charge will be collected from
the Capital Account and that amounts in the Capital Account will be
sufficient to cover the cost of the deferred sales charge. However, to
the extent that amounts in the Capital Account are insufficient to
satisfy the then current deferred sales charge obligation, Equity
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 Unit
holders' 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 Unit holder'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 Unit holder only when filing a tax return. Under
normal circumstances the Trustee obtains the Unit holder's tax
identification number from the selling broker. However, a Unit holder
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 each Trust is terminated, each Unit
holder will, upon surrender of his Units for redemption, receive: (i)
the pro rata share of the amounts realized upon the disposition of
Equity Securities, unless he elects an In-Kind Distribution as described
under "Other Information-How May the Indenture be Amended or
Terminated?" and (ii) a pro rata share of any other assets of a Trust,
less expenses of such Trust.
The Trustee will credit to the Income Account of a Trust any dividends
Page 44
received on the Equity Securities therein. All other receipts (e.g.
return of capital, etc.) are credited to the Capital Account of each
Trust.
The Trustee may establish reserves (the "Reserve Account") within each
Trust for state and local taxes, if any, and any governmental charges
payable out of a Trust.
What Reports will Unit Holders Receive?
The Trustee shall furnish Unit holders in connection with each
distribution a statement of the amount of income, if any, and the amount
of other receipts, if any, which are being distributed, expressed in
each case as a dollar amount per Unit. 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 Unit holder
of a Trust the following information in reasonable detail: (1) a summary
of transactions in such Trust for such year; (2) any Equity Securities
sold during the year and the Equity Securities held at the end of such
year by such 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,
Unit holders will be furnished, upon request to the Trustee, evaluations
of the Securities in the Trusts furnished to it by the Evaluator.
How May Units be Redeemed?
A Unit holder may redeem all or a portion of his Units by tender to the
Trustee at its unit investment trust office in the City of New York of
the certificates representing the Units to be redeemed, or in the case
of uncertificated Units, delivery of a request for redemption, duly
endorsed or accompanied by proper instruments of transfer with signature
guaranteed as explained above (or by providing satisfactory indemnity,
as in connection with lost, stolen or destroyed certificates), and
payment of applicable governmental charges, if any. No redemption fee
will be charged. On the third business day following such tender, the
Unit holder will be entitled to receive in cash an amount for each Unit
equal to the Redemption Price per Unit next computed after receipt by
the Trustee of such tender of Units. The "date of tender" is deemed to
be the date on which Units are received by the Trustee (if such day is a
day on which the New York Stock Exchange is open for trading), except
that as regards Units received after 4:00 p.m. Eastern time (or as of
any earlier closing time on a day on which the New York Stock Exchange
is scheduled in advance to close at such earlier time), the date of
tender is the next day on which the New York Stock Exchange is open for
trading and such Units will be deemed to have been tendered to the
Trustee on such day for redemption at the redemption price computed on
that day. Units so redeemed shall be cancelled. Units 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.
Any Unit holder tendering 2,500 Units or more of a Trust 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 Equity
Securities in an amount and value of Equity Securities per Unit equal to
the Redemption Price Per Unit as determined as of the evaluation next
following tender. However, no In-Kind Distribution requests submitted
during the nine business days prior to the Mandatory Termination Date
will be honored. To the extent possible, in-kind distributions ("In-Kind
Distributions") shall be made by the Trustee through the distribution of
each of the Equity Securities in book-entry form to the account of the
Unit holder'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 Unit holder will receive his pro
rata number of whole shares of each of the Equity Securities comprising
the portfolio and cash from the Capital Account equal to the fractional
shares to which the tendering Unit holder is entitled. The Trustee may
adjust the number of shares of any issue of Equity Securities included
in a Unit holder's In-Kind Distribution to facilitate the distribution
of whole shares, such adjustment to be made on the basis of the value of
Equity Securities on the date of tender. See "What is the Federal Tax
Status of Unit Holders?" If funds in the Capital Account are
insufficient to cover the required cash distribution to the tendering
Unit holder, the Trustee may sell Equity Securities in the manner
described above.
Under regulations issued by the Internal Revenue Service, the Trustee is
required to withhold a specified percentage of the principal amount of a
Unit redemption if the Trustee has not been furnished the redeeming Unit
holder's tax identification number in the manner required by such
Page 45
regulations. For further information regarding this withholding, see
"Rights of Unit Holders-How are Income and Capital Distributed?" 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
of each Trust.
The Trustee is empowered to sell Equity Securities of each Trust in
order to make funds available for redemption. To the extent that Equity
Securities are sold, the size and diversity of each Trust will be
reduced. Such sales may be required at a time when Equity Securities
would not otherwise be sold and might result in lower prices than might
otherwise be realized.
The Redemption Price per Unit will be determined on the basis of the
aggregate underlying value of the Equity Securities in a Trust plus or
minus cash, if any, in the Income and Capital Accounts of such Trust.
The Redemption Price per Unit is the pro rata share of each Unit
determined by the Trustee by adding: (1) the cash on hand in a Trust
other than cash deposited in a Trust to purchase Equity Securities not
applied to the purchase of such Equity Securities; (2) the aggregate
value of the Equity Securities held in a Trust, as determined by the
Evaluator on the basis of the aggregate underlying value of the Equity
Securities in such Trust next computed; and (3) dividends receivable on
the Equity Securities trading ex-dividend as of the date of computation;
and deducting therefrom: (1) amounts representing any applicable taxes
or governmental charges payable out of the Trust; (2) any amounts owing
to the Trustee for its advances; (3) an amount representing estimated
accrued expenses of a Trust, including but not limited to fees and
expenses of the Trustee (including legal and auditing fees), the
Evaluator and supervisory fees, if any; (4) cash held for distribution
to Unit holders of record of a Trust as of the business day prior to the
evaluation being made; and (5) other liabilities incurred by a Trust;
and finally dividing the results of such computation by the number of
Units of the Trust outstanding as of the date thereof. The redemption
price per Unit will be assessed the amount, if any, of the remaining
deferred sales charge at the time of redemption.
The aggregate value of the Equity Securities used to calculate the
Redemption Price per Unit will be determined in the following manner: if
the Equity Securities are listed, this evaluation is generally based on
the closing sale prices on that exchange (unless it is determined that
these prices are inappropriate as a basis for valuation) or, if there is
no closing sale price on that exchange, at the closing ask prices
(during the initial offering period) or the closing bid prices
(subsequent to the initial offering period). If the Equity Securities
are not so listed or, if so listed and the principal market therefor is
other than on the exchange, the evaluation shall generally be based on
the current ask or bid prices (as appropriate) on the over-the-counter
market (unless these prices are inappropriate as a basis for
evaluation). If current ask or bid prices (as appropriate) are
unavailable, the evaluation is generally determined (a) on the basis of
current ask or bid prices (as appropriate) for comparable securities,
(b) by appraising the value of the Equity Securities on the ask or bid
side of the market (as appropriate) or (c) by any combination of the
above.
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 Unit holders 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.
How May Units be Purchased by the Sponsor?
The Trustee shall 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 per Unit, it may purchase such
Units by notifying the Trustee before 1:00 p.m. Eastern time on the same
business day and by making payment therefor to the Unit holder not later
than the day on which the Units would otherwise have been redeemed by
Page 46
the Trustee. Units held by the Sponsor may be tendered to the Trustee
for redemption as any other Units. In the event the Sponsor does not
purchase Units, the Trustee may sell Units tendered for redemption in
the over-the-counter market, if any, as long as the amount to be
received by the Unit holder is equal to the amount he would have
received on redemption of the Units.
The offering price of any Units acquired by the Sponsor will be in
accord with the Public Offering Price described in the then effective
prospectus describing such Units. Any profit or loss resulting from the
resale or redemption of such Units will belong to the Sponsor.
How May Equity Securities be Removed from a Trust?
The Portfolios of the Trusts are not "managed" by the Sponsor or the
Trustee; their activities described herein are governed solely by the
provisions of the Indenture. The Indenture provides that the Sponsor may
(but need not) direct the Trustee to dispose of an Equity Security in
the event that an issuer defaults in the payment of a dividend that has
been declared, that any action or proceeding has been instituted
restraining the payment of dividends or there exists any legal question
or impediment affecting such Equity Security, that the issuer of the
Equity Security has breached a covenant which would affect the payments
of dividends, the credit standing of the issuer or otherwise impair the
sound investment character of the Equity Security, that the issuer has
defaulted on the payment on any other of its outstanding obligations,
that the price of the Equity Security has declined to such an extent or
other such credit factors exist so that in the opinion of the Sponsor,
the retention of such Equity Securities would be detrimental to a Trust.
Except as stated under "Portfolio-What are Some Additional
Considerations for Investors?" for Failed Contract Obligations, the
acquisition by a Trust of any securities or other property other than
the Equity Securities is prohibited. Pursuant to the Indenture and with
limited exceptions, the Trustee may sell any securities or other
property acquired in exchange for Equity Securities such as those
acquired in connection with a merger or other transaction. If offered
such new or exchanged securities or property, the Trustee shall reject
the offer. However, in the event such securities or property are
nonetheless acquired by a Trust, they may be accepted for deposit in a
Trust and either sold by the Trustee or held in a Trust pursuant to the
direction of the Sponsor (who may rely on the advice of the Portfolio
Supervisor). Proceeds from the sale of Equity Securities (or any
securities or other property received by a Trust in exchange for Equity
Securities) by the Trustee are credited to the Capital Account of a
Trust for distribution to Unit holders or to meet redemptions. The
Trustee may, from time to time, retain and pay compensation to the
Sponsor (or an affiliate of the Sponsor) to act as agent for the Trusts
with respect to selling Equity Securities from the Trusts. In acting in
such capacity, the Sponsor or its affiliate will be held subject to the
restrictions under the Investment Company Act of 1940, as amended.
The Trustee may also sell Equity Securities designated by the Sponsor,
or if not so directed, in its own discretion, for the purpose of
redeeming Units of a Trust tendered for redemption and the payment of
expenses.
The Sponsor, in designating Equity Securities to be sold by the Trustee,
will generally make selections in order to maintain, to the extent
practicable, the proportionate relationship among the number of shares
of individual issues of Equity Securities. To the extent this is not
practicable, the composition and diversity of the Equity Securities may
be altered. In order to obtain the best price for a Trust, it may be
necessary for the Sponsor to specify minimum amounts (generally 100
shares) in which blocks of Equity Securities are to be sold. The Sponsor
may consider sales of Units of unit investment trusts which it sponsors
in making recommendations to the Trustee as to the selection of
broker/dealers to execute the Trusts' portfolio transactions.
INFORMATION AS TO SPONSOR, TRUSTEE AND EVALUATOR
Who is the Sponsor?
Nike Securities L.P., the Sponsor, specializes in the underwriting,
trading and distribution of unit investment trusts and other securities.
Nike Securities L.P., an Illinois limited partnership formed in 1991,
acts as Sponsor for successive series of The First Trust Combined
Series, the FT Series (formerly known as The First Trust Special
Situations Trust), The First Trust Insured Corporate Trust, The First
Trust of Insured Municipal Bonds and The First Trust GNMA. First Trust
introduced the first insured unit investment trust in 1974 and to date
more than $9 billion in First Trust unit investment trusts have been
Page 47
deposited. The Sponsor's employees include a team of professionals with
many years of experience in the unit investment trust industry. The
Sponsor is a member of the National Association of Securities Dealers,
Inc. and Securities Investor Protection Corporation and has its
principal offices at 1001 Warrenville Road, Lisle, Illinois 60532;
telephone number (630) 241-4141. As of December 31, 1997, the total
partners' capital of Nike Securities L.P. was $11,724,071 (audited).
(This paragraph relates only to the Sponsor and not to the Trusts or to
any series thereof or to any other dealer. The information is included
herein only for the purpose of informing investors as to the financial
responsibility of the Sponsor and its ability to carry out its
contractual obligations. More detailed financial information will be
made available by the Sponsor upon request.)
Who is the Trustee?
The Trustee is The Chase Manhattan Bank, with its principal executive
office located at 270 Park Avenue, New York, New York 10017 and its unit
investment trust office at 4 New York Plaza, 6th floor, New York, New
York 10004-2413. Unit holders who have questions regarding the Trusts
may call the Customer Service Help Line at 1-800-682-7520. The Trustee
is subject to supervision by the Superintendent of Banks of the State of
New York, the Federal Deposit Insurance Corporation and the Board of
Governors of the Federal Reserve System.
The Trustee, whose duties are ministerial in nature, has not
participated in the selection of the Equity Securities. For information
relating to the responsibilities of the Trustee under the Indenture,
reference is made to the material set forth under "Rights of Unit
Holders."
The Trustee and any successor trustee may resign by executing an
instrument in writing and filing the same with the Sponsor and mailing a
copy of a notice of resignation to all Unit holders. Upon receipt of
such notice, the Sponsor is obligated to appoint a successor trustee
promptly. If the Trustee becomes incapable of acting or becomes bankrupt
or its affairs are taken over by public authorities, the Sponsor may
remove the Trustee and appoint a successor as provided in the Indenture.
If upon resignation of a trustee no successor has accepted the
appointment within 30 days after notification, the retiring trustee may
apply to a court of competent jurisdiction for the appointment of a
successor. The resignation or removal of a trustee becomes effective
only when the successor trustee accepts its appointment as such or when
a court of competent jurisdiction appoints a successor trustee.
Any corporation into which a Trustee may be merged or with which it may
be consolidated, or any corporation resulting from any merger or
consolidation to which a Trustee shall be a party, shall be the
successor Trustee. The Trustee must be a banking corporation organized
under the laws of the United States or any State and having at all times
an aggregate capital, surplus and undivided profits of not less than
$5,000,000.
Limitations on Liabilities of Sponsor and Trustee
The Sponsor and the Trustee shall be under no liability to Unit holders
for taking any action or for refraining from taking any action in good
faith pursuant to the Indenture, or for errors in judgment, but shall be
liable only for their own willful misfeasance, bad faith, gross
negligence (ordinary negligence in the case of the Trustee) or reckless
disregard of their obligations and duties. The Trustee shall not be
liable for depreciation or loss incurred by reason of the sale by the
Trustee of any of the Equity Securities. In the event of the failure of
the Sponsor to act under the Indenture, the Trustee may act thereunder
and shall not be liable for any action taken by it in good faith under
the Indenture.
Page 48
The Trustee shall not be liable for any taxes or other governmental
charges imposed upon or in respect of the Securities or upon the
interest thereon or upon it as Trustee under the Indenture or upon or in
respect of the Trust which the Trustee may be required to pay under any
present or future law of the United States of America or of any other
taxing authority having jurisdiction. In addition, the Indenture
contains other customary provisions limiting the liability of the Trustee.
If the Sponsor shall fail to perform any of its duties under the
Indenture or becomes incapable of acting or becomes bankrupt or its
affairs are taken over by public authorities, then the Trustee may (a)
appoint a successor Sponsor at rates of compensation deemed by the
Trustee to be reasonable and not exceeding amounts prescribed by the
Securities and Exchange Commission, or (b) terminate the Indenture and
liquidate the Trust as provided herein, or (c) continue to act as
Trustee without terminating the Indenture.
Who is the Evaluator?
The Evaluator is First Trust Advisers L.P., an Illinois limited
partnership formed in 1991 and an affiliate of the Sponsor. The
Evaluator's address is 1001 Warrenville Road, Lisle, Illinois 60532. The
Evaluator may resign or may be removed by the Sponsor or the Trustee, in
which event the Sponsor and the Trustee are to use their best efforts to
appoint a satisfactory successor. Such resignation or removal shall
become effective upon the acceptance of appointment by the successor
Evaluator. If upon resignation of the Evaluator no successor has
accepted appointment within 30 days after notice of resignation, the
Evaluator may apply to a court of competent jurisdiction for the
appointment of a successor.
The Trustee, Sponsor and Unit holders may rely on any evaluation
furnished by the Evaluator and shall have no responsibility for the
accuracy thereof. Determinations by the Evaluator under the Indenture
shall be made in good faith upon the basis of the best information
available to it, provided, however, that the Evaluator shall be under no
liability to the Trustee, Sponsor or Unit holders for errors in
judgment. This provision shall not protect the Evaluator in any case of
willful misfeasance, bad faith, gross negligence or reckless disregard
of its obligations and duties.
OTHER INFORMATION
How May the Indenture be Amended or Terminated?
The Sponsor and the Trustee have the power to amend the Indenture
without the consent of any of the Unit holders when such an amendment is
(1) to cure any ambiguity or to correct or supplement any provision of
the Indenture which may be defective or inconsistent with any other
provision contained therein, or (2) to make such other provisions as
shall not adversely affect the interest of the Unit holders (as
determined in good faith by the Sponsor and the Trustee).
The Indenture provides that a Trust shall terminate upon the Mandatory
Termination Date indicated herein under "Summary of Essential
Information." A Trust may be liquidated at any time by consent of 100%
of the Unit holders of a Trust or by the Trustee when the value of the
Equity Securities owned by a Trust as shown by any evaluation, is less
than the lower of $2,000,000 or 20% of the total value of Equity
Securities deposited in such Trust during the primary offering period,
or in the event that Units of a Trust not yet sold aggregating more than
60% of the Units of such Trust are tendered for redemption by a
broker/dealer, including the Sponsor. If a Trust is liquidated because
of the redemption of unsold Units of such Trust by a broker/dealer, the
Sponsor will refund to each purchaser of Units of such Trust the entire
sales charge paid by such purchaser. In the event of termination,
written notice thereof will be sent by the Trustee to all Unit holders
of such Trust. Within a reasonable period after termination, the Trustee
will follow the procedures set forth under "Rights of Unit Holders-How
are Income and Capital Distributed?"
Commencing during the period beginning nine business days prior to, and
no later than, the Mandatory Termination Date, Equity Securities will
begin to be sold in connection with the termination of a Trust. The
Sponsor will determine the manner, timing and execution of the sale of
the Equity Securities. Written notice of any termination of a Trust
specifying the time or times at which Unit holders may surrender their
certificates for cancellation shall be given by the Trustee to each Unit
holder at his address appearing on the registration books of the Trust
maintained by the Trustee. At least 60 days prior to the Mandatory
Termination Date of a Trust the Trustee will provide written notice
thereof to all Unit holders and will include with such notice a form to
enable Unit holders to elect a distribution of shares of Equity
Securities (reduced by customary transfer and registration charges), if
such Unit holder owns at least 2,500 Units of such Trust, rather than to
receive payment in cash for such Unit holder's pro rata share of the
amounts realized upon the disposition by the Trustee of Equity
Securities. To be effective, the election form, together with
surrendered certificates and other documentation required by the
Trustee, must be returned to the Trustee at least ten business days
prior to the Mandatory Termination Date of a Trust. Unit holders not
electing or eligible to receive a distribution of shares of Equity
Securities will receive a cash distribution from the sale of the
remaining Equity Securities within a reasonable time after a Trust is
terminated. Regardless of the distribution involved, the Trustee will
deduct from the funds of such Trust any accrued costs, expenses,
advances or indemnities provided by the Trust Agreement, including
Page 49
estimated compensation of the Trustee and costs of liquidation and any
amounts required as a reserve to provide for payment of any applicable
taxes or other governmental charges. Any sale of Equity Securities in a
Trust in connection with termination may result in a lower amount than
might otherwise be realized if such sale were not required at such time.
In addition, to the extent that Equity Securities are sold prior to the
Mandatory Termination Date, Unit holders will not benefit from any stock
appreciation they would have received had the Equity Securities not been
sold at such time. The Trustee will then distribute to each Unit holder
his pro rata share of the balance of the Income and Capital Accounts.
Legal Opinions
The legality of the Units offered hereby and certain matters relating to
Federal tax law have been passed upon by Chapman and Cutler, 111 West
Monroe Street, Chicago, Illinois 60603, as counsel for the Sponsor.
Carter, Ledyard & Milburn, will act as counsel for the Trustee and as
special New York tax counsel for the Trusts.
Experts
The statements of net assets, including the schedules of investments, of
the Trusts at the opening of business on the Initial Date of Deposit
appearing in this Prospectus and Registration Statement, have been
audited by Ernst & Young LLP, independent auditors, as set forth in
their report thereon appearing elsewhere herein and in the Registration
Statement, and are included in reliance upon such report given upon the
authority of such firm as experts in accounting and auditing.
Page 50
REPORT OF INDEPENDENT AUDITORS
The Sponsor, Nike Securities L.P., and Unit Holders
FT 250
We have audited the accompanying statements of net assets, including the
schedules of investments, of FT 250, comprised of Communications Growth
Trust, Series 2, Fundamental Value Trust Series, Insurance Growth Trust
Series, Internet Growth Trust, Series 4, Media & Entertainment Growth
Trust, Series 2 and Medical Growth Trust Series as of the opening of
business on April 15, 1998. These statements of net assets are the
responsibility of the Trusts' Sponsor. Our responsibility is to express
an opinion on these statements of net assets based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the statements of net assets
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
statements of net assets. Our procedures included confirmation of the
letter of credit allocated among the Trusts on April 15, 1998. An audit
also includes assessing the accounting principles used and significant
estimates made by the Sponsor, as well as evaluating the overall
presentation of the statements of net assets. We believe that our audit
of the statements of net assets provides a reasonable basis for our
opinion.
In our opinion, the statements of net assets referred to above present
fairly, in all material respects, the financial position of FT 250,
comprised of Communications Growth Trust, Series 2, Fundamental Value
Trust Series, Insurance Growth Trust Series, Internet Growth Trust,
Series 4, Media & Entertainment Growth Trust, Series 2 and Medical
Growth Trust Series at the opening of business on April 15, 1998 in
conformity with generally accepted accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
April 15, 1998
Page 51
Statements of Net Assets
FT 250
At the Opening of Business on the
Initial Date of Deposit-April 15, 1998
<TABLE>
<CAPTION>
Communications Fundamental Insurance
Growth Trust Value Growth Trust
Series 2 Trust Series Series
_______________ _______________ _____________
<S> <C> <C> <C>
NET ASSETS
Investment in Equity Securities represented
by purchase contracts (1) (2) $148,725 $148,633 $148,906
Organizational and offering costs (3) 45,000 45,000 45,000
________ ________ ________
193,725 193,633 193,906
Less accrued organizational and offering costs (3) (45,000) (45,000) (45,000)
Less liability for deferred sales charge (4) (5,258) (5,255) (5,264)
________ ________ ________
Net assets $143,467 $143,378 $143,642
======== ======== ========
Units outstanding 15,023 15,013 15,041
ANALYSIS OF NET ASSETS
Cost to investors (5) $150,227 $150,134 $150,410
Less sales charge (5) (6,760) (6,756) (6,768)
________ ________ ________
Net assets $143,467 $143,378 $143,642
======== ======== ========
<FN>
NOTES TO STATEMENT OF NET ASSETS
(1) Aggregate cost of the Equity Securities listed under "Schedule of
Investments" for each Trust is based on their aggregate underlying value.
(2) An irrevocable letter of credit totaling $1,200,000 issued by The
Chase Manhattan Bank, which will be allocated among each of the six
Trusts in FT 250, has been deposited with the Trustee as collateral,
which is sufficient to cover the monies necessary for the purchase of
the Equity Securities pursuant to contracts for the purchase of such
Equity Securities.
(3) Each Trust will bear all or a portion of its estimated
organizational and offering costs which will be deferred and charged off
over a period not to exceed the life of the Trust (approximately five
years). The estimated organizational and offering costs are based on
2,000,000 Units of each Trust expected to be issued. To the extent the
number of Units issued is larger or smaller, the estimate will vary.
(4) Represents the amount of mandatory distributions from each Trust
($.35 per Unit), payable to the Sponsor in five equal monthly
installments beginning on November 20, 1998, and on the twentieth day of
each month thereafter (or if such date is not a business day, on the
preceding business day) through March 19, 1999. If Units are redeemed
prior to March 19, 1999, the remaining amount of the deferred sales
charge applicable to such Units will be payable at the time of redemption.
(5) The aggregate cost to investors includes a sales charge computed at
the rate of 4.5% of the Public Offering Price (equivalent to 4.545% of
the net amount invested, exclusive of the deferred sales charge),
assuming no reduction of sales charge as set forth under "Public
Offering-How is the Public Offering Price Determined?"
</FN>
</TABLE>
Page 52
Statements of Net Assets (con't.)
FT 250
At the Opening of Business on the
Initial Date of Deposit-April 15, 1998
<TABLE>
<CAPTION>
Media &
Internet Entertainment Medical
Growth Trust Growth Trust Growth
Series 4 Series 2 Trust Series
____________ ____________ _____________
<S> <C> <C> <C>
NET ASSETS
Investment in Equity Securities represented
by purchase contracts (1) (2) $148,311 $148,604 $148,906
Organizational and offering costs (3) 45,000 45,000 45,000
________ ________ ________
193,311 193,604 193,906
Less accrued organizational and offering costs (3) (45,000) (45,000) (45,000)
Less liability for deferred sales charge (4) (5,243) (5,254) (5,264)
________ ________ ________
Net assets $143,068 $143,350 $143,642
======== ======== ========
Units outstanding 14,981 15,010 15,041
ANALYSIS OF NET ASSETS
Cost to investors (5) $149,809 $150,105 $150,410
Less sales charge (5) (6,741) (6,755) (6,768)
________ ________ ________
Net assets $143,068 $143,350 $143,642
======== ======== ========
<FN>
NOTES TO STATEMENT OF NET ASSETS
(1) Aggregate cost of the Equity Securities listed under "Schedule of
Investments" for each Trust is based on their aggregate underlying value.
(2) An irrevocable letter of credit totaling $1,200,000 issued by The
Chase Manhattan Bank, which will be allocated among each of the six
Trusts in FT 250, has been deposited with the Trustee as collateral,
which is sufficient to cover the monies necessary for the purchase of
the Equity Securities pursuant to contracts for the purchase of such
Equity Securities.
(3) Each Trust will bear all or a portion of its estimated
organizational and offering costs which will be deferred and charged off
over a period not to exceed the life of the Trust (approximately five
years). The estimated organizational and offering costs are based on
2,000,000 Units of each Trust expected to be issued. To the extent the
number of Units issued is larger or smaller, the estimate will vary.
(4) Represents the amount of mandatory distributions from each Trust
($.35 per Unit), payable to the Sponsor in five equal monthly
installments beginning on November 20, 1998, and on the twentieth day of
each month thereafter (or if such date is not a business day, on the
preceding business day) through March 19, 1999. If Units are redeemed
prior to March 19, 1999, the remaining amount of the deferred sales
charge applicable to such Units will be payable at the time of redemption.
(5) The aggregate cost to investors includes a sales charge computed at
the rate of 4.5% of the Public Offering Price (equivalent to 4.545% of
the net amount invested, exclusive of the deferred sales charge),
assuming no reduction of sales charge as set forth under "Public
Offering-How is the Public Offering Price Determined?"
</FN>
</TABLE>
Page 53
Schedule of Investments
COMMUNICATIONS GROWTH TRUST, SERIES 2
FT 250
At the Opening of Business on the
Initial Date of Deposit-April 15, 1998
<TABLE>
<CAPTION>
Percentage Market Cost of
of Aggregate Value Equity
Number Ticker Symbol and Offering per Securities
of Shares Name of Issuer of Equity Securities (1) Price Share to Trust (2)
_________ _______________________________________ ____________ ______ _____________
<S> <C> <C> <C> <C>
COMPUTER NETWORKING
182 COMS 3Com Corporation 4% $ 32.563 $ 5,926
149 ASND Ascend Communications, Inc. 4% 39.750 5,923
250 BAY Bay Networks, Inc. 4% 23.875 5,969
87 CSCO Cisco Systems, Inc. 4% 67.688 5,889
COMMUNICATIONS EQUIPMENT
227 ADCT ADC Telecommunications, Inc. 4% 26.313 5,973
202 ADTN ADTRAN, Inc. 4% 29.063 5,871
224 ASPT Aspect Telecommunications Corporation 4% 26.813 6,006
86 LU Lucent Technologies, Inc. 4% 68.938 5,929
97 NT Northern Telecom Ltd. (3) 4% 61.063 5,923
278 PAIR Pairgain Technologies, Inc. 4% 20.938 5,821
88 TLAB Tellabs, Inc. 4% 68.688 6,045
COMMUNICATIONS SERVICES
134 AT ALLTEL Corporation 4% 44.375 5,946
132 AIT Ameritech Corporation 4% 45.250 5,973
95 BLS BellSouth Corporation 4% 62.688 5,955
156 CWP Cable & Wireless plc (ADR) 4% 38.375 5,987
134 CTL Century Telephone Enterprises, Inc. 4% 44.438 5,955
235 CTC Compania de Telefonos de Chile SA (ADR) 4% 25.063 5,890
182 LOR Loral Space & Communications Ltd. 4% 32.688 5,949
148 SBC SBC Communications, Inc. 4% 40.313 5,966
44 TEF Telefonica de EspaHelvetica:x96a SA (ADR) 4% 134.688 5,926
253 TALK Tel-Save Holdings, Inc. 4% 23.563 5,961
133 WCOM WorldCom, Inc. 4% 44.828 5,962
WIRELESS COMMUNICATIONS
109 ERICY L.M. Ericsson AB (ADR) 4% 54.625 5,954
50 NOK/A Nokia Oy AB (ADR) 4% 119.688 5,984
57 VOD Vodafone Group plc (ADR) 4% 106.000 6,042
______ _________
Total Investments 100% $148,725
====== =========
____________
<FN>
(1) All Equity Securities are represented by regular way contracts to
purchase such Equity Securities for the performance of which an
irrevocable letter of credit has been deposited with the Trustee. The
contracts to purchase Equity Securities were entered into by the Sponsor
on April 14, 1998.
(2) The cost of the Equity Securities to the Trust represents the
aggregate underlying value with respect to the Equity Securities
acquired (generally determined by the last sale prices of the listed
Equity Securities and the ask prices of the over-the-counter traded
Equity Securities on the business day preceding the Initial Date of
Deposit). The valuation of the Equity Securities has been determined by
the Evaluator, an affiliate of the Sponsor. The aggregate underlying
value of the Equity Securities on the Initial Date of Deposit was
$148,725. Cost and loss to Sponsor relating to the Equity Securities
sold to the Trust were $149,186 and $461, respectively.
(3) This Equity Security represents the common stock of a foreign company
which trades directly on a United States securities exchange.
</FN>
</TABLE>
Page 54
Schedule of Investments
FUNDAMENTAL VALUE TRUST SERIES
FT 250
At the Opening of Business on the
Initial Date of Deposit-April 15, 1998
<TABLE>
<CAPTION>
Percentage Market Cost of
Number of Aggregate Value Equity
of Ticker Symbol and Offering per Securities
Shares Name of Issuer of Equity Securities (1) Price Share to Trust (2)
______ _______________________________________ ____________ ______ ___________
<S> <C> <C> <C> <C>
227 ADCT ADC Telecommunications, Inc. 4% $26.313 $ 5,973
79 ABT Abbott Laboratories 4% 75.188 5,940
220 AEIC Air Express International Corporation 4% 27.125 5,967
71 SLOT Anchor Gaming 4% 85.000 6,035
169 AMAT Applied Materials, Inc. 4% 36.188 6,116
86 BDX Becton, Dickinson and Company 4% 69.250 5,955
82 CCL Carnival Corporation (Class A) 4% 72.250 5,925
267 CMH Clayton Homes, Inc. 4% 22.375 5,974
206 HRC HEALTHSOUTH Corporation 4% 28.688 5,910
161 IEX IDEX Corporation 4% 36.125 5,816
137 LANC Lancaster Colony Corporation 4% 43.500 5,959
107 LEA Lear Corporation 4% 55.438 5,932
108 LEG Leggett & Platt, Inc. 4% 55.125 5,954
102 MCRS MICROS Systems, Inc. 4% 58.500 5,967
241 NATR Nature's Sunshine Products, Inc. 4% 24.750 5,965
216 NAUT Nautica Enterprises, Inc. 4% 27.563 5,954
96 NETA Network Associates, Inc. 4% 62.188 5,970
80 TROW T. Rowe Price Associates, Inc. 4% 72.625 5,810
205 FLC R&B Falcon Corporation 4% 29.125 5,971
250 REY The Reynolds and Reynolds Company (Class A) 4% 23.875 5,969
191 ROP Roper Industries, Inc. 4% 31.125 5,945
265 SMOD SMART Modular Technologies, Inc. 4% 22.375 5,929
146 SUNW Sun Microsystems, Inc. 4% 40.188 5,867
153 TER Teradyne, Inc. 4% 38.500 5,890
144 TDW Tidewater, Inc. 4% 41.250 5,940
______ _________
Total Investments 100% $148,633
====== =========
_________________
<FN>
(1) All Equity Securities are represented by regular way contracts to
purchase such Equity Securities for the performance of which an
irrevocable letter of credit has been deposited with the Trustee. The
contracts to purchase Equity Securities were entered into by the Sponsor
on April 14, 1998.
(2) The cost of the Equity Securities to the Trust represents the
aggregate underlying value with respect to the Equity Securities
acquired (generally determined by the last sale prices of the listed
Equity Securities and the ask prices of the over-the-counter traded
Equity Securities on the business day preceding the Initial Date of
Deposit). The valuation of the Equity Securities has been determined by
the Evaluator, an affiliate of the Sponsor. The aggregate underlying
value of the Equity Securities on the Initial Date of Deposit was
$148,633. Cost and loss to Sponsor relating to the Equity Securities
sold to the Trust were $148,839 and $206, respectively.
</FN>
</TABLE>
Page 55
Schedule of Investments
INSURANCE GROWTH TRUST SERIES
FT 250
At the Opening of Business on the
Initial Date of Deposit-April 15, 1998
<TABLE>
<CAPTION>
Percentage Market Cost of
of Aggregate Value Equity
Number Ticker Symbol and Offering per Securities
of Shares Name of Issuer of Equity Securities (1) Price Share to Trust (2)
_________ _______________________________________ ____________ ______ ___________
<S> <C> <C> <C> <C>
FINANCIAL GUARANTEE
92 KRE Capital Re Corporation 4% $ 65.375 $ 6,015
93 CMT CMAC Investment Corporation 4% 64.063 5,958
85 EFS Enhance Financial Services Group, Inc. 4% 69.938 5,945
75 MBI MBIA, Inc. 4% 79.313 5,948
88 MTG MGIC Investment Corporation 4% 67.500 5,940
LIFE/HEALTH
95 AFL AFLAC, Inc. 4% 62.688 5,955
130 NFS Nationwide Financial Services, Inc. (Class A) 4% 46.000 5,980
123 RLR ReliaStar Financial Corporation 4% 48.500 5,966
111 SAI SunAmerica, Inc. 4% 53.750 5,966
MULTI-LINE
44 AEG AEGON N.V. (American Registered Shares) (3) 4% 136.875 6,023
98 AXA AXA-UAP (ADR) 4% 60.375 5,917
62 ALL Allstate Corporation 4% 97.125 6,022
46 AIG American International Group, Inc. 4% 129.250 5,945
29 CI CIGNA Corporation 4% 207.000 6,003
53 HIG The Hartford Financial Services Group, Inc. 4% 112.750 5,976
165 HMN Horace Mann Educators Corporation 4% 36.000 5,940
128 ORI Old Republic International Corporation 4% 46.188 5,912
89 TRV Travelers Group, Inc. (4) 4% 66.688 5,935
49 ZURRY Zurich Group (ADR) 4% 120.500 5,905
PROPERTY/CASUALTY
175 GRP ALLIED Group, Inc. 4% 34.000 5,950
73 CB The Chubb Corporation 4% 81.125 5,922
134 RE Everest Reinsurance Holdings, Inc. 4% 44.250 5,929
101 FMT Fremont General Corporation 4% 59.250 5,984
106 OC Orion Capital Corporation 4% 56.000 5,936
46 PGR Progressive Corporation 4% 129.000 5,934
______ _________
Total Investments 100% $148,906
====== =========
__________________
<FN>
(1) All Equity Securities are represented by regular way contracts to
purchase such Equity Securities for the performance of which an
irrevocable letter of credit has been deposited with the Trustee. The
contracts to purchase Equity Securities were entered into by the Sponsor
on April 14, 1998.
(2) The cost of the Equity Securities to the Trust represents the
aggregate underlying value with respect to the Equity Securities
acquired (generally determined by the last sale prices of the listed
Equity Securities and the ask prices of the over-the-counter traded
Equity Securities on the business day preceding the Initial Date of
Deposit). The valuation of the Equity Securities has been determined by
the Evaluator, an affiliate of the Sponsor. The aggregate underlying
value of the Equity Securities on the Initial Date of Deposit was
$148,906. Cost and loss to Sponsor relating to the Equity Securities
sold to the Trust were $149,417 and $511, respectively.
(3) This Equity Security represents the common stock of a foreign company
which trades directly on a United States securities exchange.
(4) Travelers Group, Inc. ("Travelers") has recently announced plans to
acquire Citicorp. As per the terms of the merger agreement, the company
will be renamed Citigroup, Inc. ("Citigroup") and each shareholder of
Travelers will receive one share of Citigroup for each share of
Travelers held. As a result of this expected transaction, it is
anticipated that the Trust will receive shares of common stock of
Citigroup in exchange for the shares of Travelers which it holds. The
transaction is subject to the approval of the shareholders of both
companies and various regulatory authorities.
</FN>
</TABLE>
Page 56
Schedule of Investments
INTERNET GROWTH TRUST, SERIES 4
FT 250
At the Opening of Business on the
Initial Date of Deposit-April 15, 1998
<TABLE>
<CAPTION>
Percentage Market Cost of
of Aggregate Value Equity
Number Ticker Symbol and Offering per Securities
of Shares Name of Issuer of Equity Securities (1) Price Share to Trust (2)
_________ _______________________________________ ____________ ______ ____________
<S> <C> <C> <C> <C>
ACCESS/INFORMATION PROVIDERS
80 AOL America Online, Inc. 4% $74.313 $ 5,945
190 FDC First Data Corporation 4% 31.500 5,985
80 MSPG MindSpring Enterprises, Inc. 4% 71.625 5,730
251 TALK Tel-Save Holdings, Inc. 4% 23.563 5,914
133 WCOM WorldCom, Inc. 4% 44.828 5,962
COMPUTER NETWORKING
185 COMS 3Com Corporation 4% 32.563 6,024
150 ASND Ascend Communications, Inc. 4% 39.750 5,963
253 BAY Bay Networks, Inc. 4% 23.875 6,040
87 CSCO Cisco Systems, Inc. 4% 67.688 5,889
COMPUTERS
228 CPQ Compaq Computer Corporation 4% 25.813 5,885
86 DELL Dell Computer Corporation 4% 68.625 5,902
126 GTW Gateway 2000, Inc. 4% 47.063 5,930
97 HWP Hewlett-Packard Company 4% 60.938 5,911
148 SUNW Sun Microsystems, Inc. 4% 40.188 5,948
SEMICONDUCTORS
78 INTC Intel Corporation 4% 76.000 5,928
267 SMOD SMART Modular Technologies, Inc. 4% 22.375 5,974
SOFTWARE
69 BMCS BMC Software, Inc. 4% 86.875 5,995
108 CA Computer Associates International, Inc. 4% 54.500 5,886
144 CHKPF Check Point Software Technologies, Ltd. 4% 40.813 5,877
67 MSFT Microsoft Corporation 4% 88.438 5,925
96 NETA Network Associates, Inc. 4% 62.188 5,970
209 ORCL Oracle Corporation 4% 28.500 5,957
110 PSFT PeopleSoft, Inc. 4% 54.000 5,940
129 SE Sterling Commerce, Inc. 4% 45.875 5,918
162 WIND Wind River Systems, Inc. 4% 36.500 5,913
______ _________
Total Investments 100% $148,311
====== =========
___________________
<FN>
(1) All Equity Securities are represented by regular way contracts to
purchase such Equity Securities for the performance of which an
irrevocable letter of credit has been deposited with the Trustee. The
contracts to purchase Equity Securities were entered into by the Sponsor
on April 14, 1998.
(2) The cost of the Equity Securities to the Trust represents the
aggregate underlying value with respect to the Equity Securities
acquired (generally determined by the last sale prices of the listed
Equity Securities and the ask prices of the over-the-counter traded
Equity Securities on the business day preceding the Initial Date of
Deposit). The valuation of the Equity Securities has been determined by
the Evaluator, an affiliate of the Sponsor. The aggregate underlying
value of the Equity Securities on the Initial Date of Deposit was
$148,311. Cost and loss to Sponsor relating to the Equity Securities
sold to the Trust were $148,640 and $329, respectively.
</FN>
</TABLE>
Page 57
Schedule of Investments
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
FT 250
At the Opening of Business on the
Initial Date of Deposit-April 15, 1998
<TABLE>
<CAPTION>
Percentage Market Cost of
of Aggregate Value Equity
Number Ticker Symbol and Offering per Securities
of Shares Name of Issuer of Equity Securities (1) Price Share to Trust (2)
_________ _____________________________________ ____________ ______ ___________
<S> <C> <C> <C> <C>
ADVERTISING
97 IPG The Interpublic Group of Companies, Inc. 4% $ 60.313 $ 5,850
125 OMC Omnicom Group, Inc. 4% 47.000 5,875
BROADCASTING
266 AK The Ackerley Group, Inc. 4% 22.188 5,902
169 CBS CBS Corporation 4% 35.125 5,936
118 AMFM Chancellor Media Corporation 4% 50.250 5,930
63 CCU Clear Channel Communications, Inc. 4% 94.750 5,969
115 EMMS Emmis Broadcasting Corporation (Class A) 4% 52.000 5,980
104 JCOR Jacor Communications, Inc. 4% 56.750 5,902
165 HATV Hearst-Argyle Television, Inc. 4% 35.250 5,816
97 SPOT PanAmSat Corporation 4% 62.500 6,063
103 SBGI Sinclair Broadcasting Group, Inc. (Class A) 4% 57.750 5,948
CABLE TELEVISION
172 CMCSK Comcast Corporation (Class A) 4% 34.688 5,966
184 LBTYA Liberty Media Corporation 4% 32.125 5,911
193 TCOMA Tele-Communications - TCI Group (Class A) 4% 31.125 6,007
222 USAI USA Networks, Inc. 4% 26.875 5,966
162 UMG US West Media Group 4% 36.750 5,954
ENTERTAINMENT
53 DIS The Walt Disney Company 4% 113.188 5,999
212 IMAXF Imax Corporation (3) 4% 27.813 5,896
209 KWP King World Productions, Inc. 4% 28.875 6,035
214 NWS News Corporation Limited (ADR) 4% 27.938 5,979
76 TWX Time Warner, Inc. 4% 78.000 5,928
108 VIA/B Viacom, Inc. (Class B) 4% 54.813 5,920
MEDIA
80 GCI Gannett Company, Inc. 4% 74.125 5,930
106 KRI Knight Ridder 4% 56.875 6,029
85 TRB Tribune Company 4% 69.563 5,913
______ _________
Total Investments 100% $148,604
====== =========
____________
<FN>
(1) All Equity Securities are represented by regular way contracts to
purchase such Equity Securities for the performance of which an
irrevocable letter of credit has been deposited with the Trustee. The
contracts to purchase Equity Securities were entered into by the Sponsor
on April 14, 1998.
(2) The cost of the Equity Securities to the Trust represents the
aggregate underlying value with respect to the Equity Securities
acquired (generally determined by the last sale prices of the listed
Equity Securities and the ask prices of the over-the-counter traded
Equity Securities on the business day preceding the Initial Date of
Deposit). The valuation of the Equity Securities has been determined by
the Evaluator, an affiliate of the Sponsor. The aggregate underlying
value of the Equity Securities on the Initial Date of Deposit was
$148,604. Cost and loss to Sponsor relating to the Equity Securities
sold to the Trust were $148,948 and $344, respectively.
(3) This Equity Security represents the common stock of a foreign company
which trades directly on a United States securities exchange.
</FN>
</TABLE>
Page 58
Schedule of Investments
MEDICAL GROWTH TRUST SERIES
FT 250
At the Opening of Business on the
Initial Date of Deposit-April 15, 1998
<TABLE>
<CAPTION>
Percentage Market Cost of
Number of Aggregate Value Equity
of Ticker Symbol and Offering per Securities
Shares Name of Issuer of Equity Securities (1) Price Share to Trust (2)
______ _______________________________________ ____________ ______ ___________
<S> <C> <C> <C> <C>
MEDICAL DEVICES
234 BMP Ballard Medical Products 4% $ 25.500 $ 5,967
202 BMET Biomet, Inc. 4% 29.875 6,035
89 BSX Boston Scientific Corporation 4% 68.375 6,085
198 DPU DePuy, Inc. 4% 29.875 5,915
112 MDT Medtronic, Inc. 4% 52.500 5,880
125 SYK Stryker Corporation 4% 48.000 6,000
94 THRX Theragenics Corporation 4% 62.563 5,881
MEDICAL PRODUCTS
158 AVEI Arterial Vascular Engineering, Inc. 4% 37.875 5,984
86 BDX Becton, Dickinson and Company 4% 69.250 5,956
191 XRAY DENTSPLY International, Inc. 4% 31.375 5,993
82 JNJ Johnson & Johnson 4% 72.563 5,950
154 LTEK Life Technologies, Inc. 4% 38.250 5,891
110 STRL STERIS Corporation 4% 54.000 5,940
208 SYB Sybron International Corporation 4% 29.125 6,058
PHARMACEUTICALS/BIOTECH
79 ABT Abbott Laboratories 4% 75.188 5,940
103 AMGN Amgen, Inc. 4% 58.000 5,974
257 BCHE BioChem Pharma, Inc. (3) 4% 23.375 6,007
57 BMY Bristol-Myers Squibb Company 4% 103.438 5,896
258 DURA Dura Pharmaceticals, Inc. 4% 23.000 5,934
186 GENZ Genzyme Corporation 4% 31.938 5,941
128 ICN ICN Pharmaceuticals, Inc. 4% 45.938 5,880
150 IDPH IDEC Pharmarceuticals Corporation 4% 38.875 5,831
179 JMED Jones Medical Industries, Inc. 4% 33.063 5,918
137 MDRX Medicis Pharmaceutical Corporation 4% 44.000 6,028
218 PRXL PAREXEL International Corporation 4% 27.625 6,022
______ _________
Total Investments 100% $148,906
====== =========
_________________
<FN>
(1) All Equity Securities are represented by regular way contracts to
purchase such Equity Securities for the performance of which an
irrevocable letter of credit has been deposited with the Trustee. The
contracts to purchase Equity Securities were entered into by the Sponsor
on April 14, 1998.
(2) The cost of the Equity Securities to the Trust represents the
aggregate underlying value with respect to the Equity Securities
acquired (generally determined by the last sale prices of the listed
Equity Securities and the ask prices of the over-the-counter traded
Equity Securities on the business day preceding the Initial Date of
Deposit). The valuation of the Equity Securities has been determined by
the Evaluator, an affiliate of the Sponsor. The aggregate underlying
value of the Equity Securities on the Initial Date of Deposit was
$148,906. Cost and profit to Sponsor relating to the Equity Securities
sold to the Trust were $148,840 and $66, respectively.
(3) This Equity Security represents the common stock of a foreign company
which trades directly on a United States securities exchange.
</FN>
</TABLE>
Page 59
CONTENTS:
Summary of Essential Information:
Communications Growth Trust, Series 2 4
Fundamental Value Trust Series 4
Insurance Growth Trust Series 4
Internet Growth Trust, Series 4 5
Media & Entertainment Growth Trust, Series 2 5
Medical Growth Trust Series 5
FT 250:
What is the FT Series? 10
What are the Expenses and Charges? 14
What is the Federal Tax Status of Unit Holders? 15
Are Investments in the Trusts Eligible for
Retirement Plans? 19
Portfolio:
What are the Equity Securities? 20
Risk Factors 20
What are the Equity Securities Selected for:
Communications Growth Trust, Series 2? 26
Fundamental Value Trust Series? 28
Insurance Growth Trust Series? 30
Internet Growth Trust, Series 4? 32
Media & Entertainment Growth Trust, Series 2? 34
Medical Growth Trust Series? 36
What are Some Additional Considerations for
Investors? 38
Public Offering:
How is the Public Offering Price Determined? 39
How are Units Distributed? 41
What are the Sponsor's Profits? 43
Will There be a Secondary Market? 43
Rights of Unit Holders:
How is Evidence of Ownership Issued and Transferred? 43
How are Income and Capital Distributed? 44
What Reports will Unit Holders Receive? 45
How May Units be Redeemed? 45
How May Units be Purchased by the Sponsor? 46
How May Equity Securities be Removed from a Trust? 47
Information as to Sponsor, Trustee and Evaluator:
Who is the Sponsor? 47
Who is the Trustee? 48
Limitations on Liabilities of Sponsor and Trustee 48
Who is the Evaluator? 49
Other Information:
How May the Indenture be Amended or Terminated? 49
Legal Opinions 50
Experts 50
Report of Independent Auditors 51
Statements of Net Assets:
Communications Growth Trust, Series 2 52
Fundamental Value Trust Series 52
Insurance Growth Trust Series 52
Internet Growth Trust, Series 4 53
Media & Entertainment Growth Trust, Series 2 53
Medical Growth Trust Series 53
Schedules of Investments:
Communications Growth Trust, Series 2 54
Fundamental Value Trust Series 55
Insurance Growth Trust Series 56
Internet Growth Trust, Series 4 57
Media & Entertainment Growth Trust, Series 2 58
Medical Growth Trust Series 59
_____________
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION
OF AN OFFER TO BUY, SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM
IT IS NOT LAWFUL TO MAKE SUCH OFFER IN SUCH JURISDICTION.
THIS PROSPECTUS DOES NOT CONTAIN ALL THE INFORMATION SET FORTH IN THE
REGISTRATION STATEMENTS AND EXHIBITS RELATING THERETO, WHICH THE FUND
HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, WASHINGTON, D.C.
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940,
AND TO WHICH REFERENCE IS HEREBY MADE.
FIRST TRUST (registered trademark)
Communications Growth Trust, Series 2
Fundamental Value Trust Series
Insurance Growth Trust Series
Internet Growth Trust, Series 4
Media & Entertainment Growth Trust, Series 2
Medical Growth Trust Series
Nike Securities L.P.
1001 Warrenville Road, Suite 300
Lisle, Illinois 60532
1-630-241-4141
Trustee:
The Chase Manhattan Bank
4 New York Plaza, 6th floor
New York, New York 10004-2413
1-800-682-7520
April 15, 1998
PLEASE RETAIN THIS PROSPECTUS
FOR FUTURE REFERENCE
Page 60
CONTENTS OF REGISTRATION STATEMENT
A. Bonding Arrangements of Depositor:
Nike Securities L.P. is covered by a Brokers' Fidelity Bond,
in the total amount of $1,000,000, the insurer being
National Union Fire Insurance Company of Pittsburgh.
B. This Registration Statement on Form S-6 comprises the
following papers and documents:
The facing sheet
The Cross-Reference Sheet
The Prospectus
The signatures
Exhibits
Financial Data Schedule
S-1
SIGNATURES
The Registrant, FT 250, hereby identifies The First Trust
Special Situations Trust, Series 4 Great Lakes Growth and
Treasury Trust, Series 1; The First Trust Special Situations
Trust, Series 18 Wisconsin Growth and Treasury Securities Trust,
Series 1; The First Trust Special Situations Trust, Series 69
Target Equity Trust Value Ten Series; The First Trust Special
Situations Trust, Series 108; The First Trust Special Situations
Trust, Series 119 Target 5 Trust, Series 2 and Target 10 Trust,
Series 8; and The First Trust Special Situations Trust, Series
190 Biotechnology Growth Trust, Series 3 for purposes of the
representations required by Rule 487 and represents the
following:
(1) that the portfolio securities deposited in the series
as to the securities of which this Registration Statement is
being filed do not differ materially in type or quality from
those deposited in such previous series;
(2) that, except to the extent necessary to identify the
specific portfolio securities deposited in, and to provide
essential financial information for, the series with respect to
the securities of which this Registration Statement is being
filed, this Registration Statement does not contain disclosures
that differ in any material respect from those contained in the
registration statements for such previous series as to which the
effective date was determined by the Commission or the staff; and
(3) that it has complied with Rule 460 under the Securities
Act of 1933.
Pursuant to the requirements of the Securities Act of 1933,
the Registrant, FT 250, has duly caused this Amendment to
Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the Village of Lisle
and State of Illinois on April 15, 1998.
FT 250
By NIKE SECURITIES L.P.
Depositor
By Robert M. Porcellino
Vice President
S-2
Pursuant to the requirements of the Securities Act of 1933,
this Amendment to the Registration Statement has been signed
below by the following person in the capacity and on the date
indicated:
NAME TITLE* DATE
Robert D. Van Kampen Director of )
Nike Securities )
Corporation, the ) April 15, 1998
General Partner of )
Nike Securities L.P.)
)
)
David J. Allen Director of ) Robert M. Porcellino
Nike Securities ) Attorney-in-Fact**
Corporation, the )
General Partner of )
Nike Securities L.P.
* The title of the person named herein represents his
capacity in and relationship to Nike Securities L.P.,
Depositor.
** An executed copy of the related power of attorney
was filed with the Securities and Exchange Commission in
connection with the Amendment No. 1 to Form S-6 of The
First Trust Combined Series 258 (File No. 33-63483) and
the same is hereby incorporated herein by this reference.
S-3
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption
"Experts" and to the use of our report dated April 15, 1998 in
Amendment No. 3 to the Registration Statement (Form S-6) (File
No. 333-48255) and related Prospectus of FT 250.
ERNST & YOUNG LLP
Chicago, Illinois
April 15, 1998
CONSENTS OF COUNSEL
The consents of counsel to the use of their names in the
Prospectus included in this Registration Statement will be
contained in their respective opinions to be filed as Exhibits
3.1, 3.2, 3.3 and 3.4 of the Registration Statement.
CONSENT OF FIRST TRUST ADVISORS L.P.
The consent of First Trust Advisors L.P. to the use of its
name in the Prospectus included in the Registration Statement
will be filed as Exhibit 4.1 to the Registration Statement.
S-4
EXHIBIT INDEX
1.1 Form of Standard Terms and Conditions of Trust for The
First Trust Special Situations Trust, Series 22 and
certain subsequent Series, effective November 20, 1991
among Nike Securities L.P., as Depositor, United States
Trust Company of New York as Trustee, Securities
Evaluation Service, Inc., as Evaluator, and First Trust
Advisors L.P. as Portfolio Supervisor (incorporated by
reference to Amendment No. 1 to Form S-6 [File No. 33-
43693] filed on behalf of The First Trust Special
Situations Trust, Series 22).
1.1.1 Form of Trust Agreement for Series 250 among Nike
Securities L.P., as Depositor, The Chase Manhattan Bank,
as Trustee, First Trust Advisors L.P., as Evaluator, and
First Trust Advisors L.P., as Portfolio Supervisor.
1.2 Copy of Certificate of Limited Partnership of Nike
Securities L.P. (incorporated by reference to Amendment
No. 1 to Form S-6 [File No. 33-42683] filed on behalf of
The First Trust Special Situations Trust, Series 18).
1.3 Copy of Amended and Restated Limited Partnership
Agreement of Nike Securities L.P. (incorporated by
reference to Amendment No. 1 to Form S-6 [File No. 33-
42683] filed on behalf of The First Trust Special
Situations Trust, Series 18).
1.4 Copy of Articles of Incorporation of Nike Securities
Corporation, the general partner of Nike Securities
L.P., Depositor (incorporated by reference to Amendment
No. 1 to Form S-6 [File No. 33-42683] filed on behalf of
The First Trust Special Situations Trust, Series 18).
1.5 Copy of By-Laws of Nike Securities Corporation, the
general partner of Nike Securities L.P., Depositor
(incorporated by reference to Amendment No. 1 to Form S-
6 [File No. 33-42683] filed on behalf of The First Trust
Special Situations Trust, Series 18).
1.6 Underwriter Agreement (incorporated by reference to
Amendment No. 1 to Form S-6 [File No. 33-42755] filed on
behalf of The First Trust Special Situations Trust,
Series 19).
2.1 Copy of Certificate of Ownership (included in Exhibit
1.1 filed herewith on page 2 and incorporated herein by
reference).
S-5
3.1 Opinion of counsel as to legality of securities being
registered.
3.2 Opinion of counsel as to Federal income tax status of
securities being registered.
3.3 Opinion of counsel as to New York income tax status of
securities being registered.
3.4 Opinion of counsel as to advancement of funds by
Trustee.
4.1 Consent of First Trust Advisors L.P.
6.1 List of Directors and Officers of Depositor and other
related information (incorporated by reference to
Amendment No. 1 to Form S-6 [File No. 33-42683] filed on
behalf of The First Trust Special Situations Trust,
Series 18).
7.1 Power of Attorney executed by the Director listed on
page S-3 of this Registration Statement (incorporated by
reference to Amendment No. 1 to Form S-6 [File No. 33-
63483] filed on behalf of The First Trust Combined
Series 258).
S-6
FT 250
TRUST AGREEMENT
Dated: April 15, 1998
The Trust Agreement among Nike Securities L.P., as Depositor, The Chase
Manhattan Bank, as Trustee and First Trust Advisors L.P., as Evaluator
and Portfolio Supervisor, sets forth certain provisions in full and
incorporates other provisions by reference to the document entitled
"Standard Terms and Conditions of Trust for The First Trust Special
Situations Trust, Series 22 and certain subsequent Series, Effective
November 20, 1991" (herein called the "Standard Terms and Conditions of
Trust"), and such provisions as are incorporated by reference constitute
a single instrument. All references herein to Articles and Sections are
to Articles and Sections of the Standard Terms and Conditions of Trust.
WITNESSETH THAT:
In consideration of the premises and of the mutual agreements herein
contained, the Depositor, the Trustee, the Evaluator and the Portfolio
Supervisor agree as follows:
PART I
STANDARD TERMS AND CONDITIONS OF TRUST
Subject to the provisions of Part II and Part III hereof, all the
provisions contained in the Standard Terms and Conditions of Trust are
herein incorporated by reference in their entirety and shall be deemed
to be a part of this instrument as fully and to the same extent as
though said provisions had been set forth in full in this instrument.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR COMMUNICATIONS GROWTH TRUST, SERIES 2
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR FUNDAMENTAL VALUE TRUST SERIES
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR INSURANCE GROWTH TRUST SERIES
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR INTERNET GROWTH TRUST, SERIES 4
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR MEDICAL GROWTH TRUST SERIES
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART III
A. Notwithstanding anything to the contrary in the Standard Terms
and Conditions of Trust, references to subsequent Series established
after the date of effectiveness of the First Trust Special Situations
Trust, Series 24 shall include FT 250.
B. The term "Principal Account" as set forth in the Standard
Terms and Conditions of Trust shall be replaced with the term "Capital
Account."
C. Section 1.01(2) shall be amended to read as follows:
"(2) "Trustee" shall mean The Chase Manhattan Bank, or
any successor trustee appointed as hereinafter provided."
All references to United States Trust Company of New York in the
Standard Terms and Conditions of Trust shall be amended to refer to The
Chase Manhattan Bank.
D. Section 1.01(3) shall be amended to read as follows:
"(3) "Evaluator" shall mean First Trust Advisors L.P. and its successors
in interest, or any successor evaluator appointed as hereinafter
provided."
E. Section 1.01(4) shall be amended to read as follows:
"(4) "Portfolio Supervisor" shall mean First Trust Advisors L.P. and its
successors in interest, or any successor portfolio supervisor appointed
as hereinafter provided."
F. Section 1.01(29) shall be added to read as follows:
"(29) The term "Distribution Agent" shall refer to the Trustee acting
in its capacity as distribution agent pursuant to Section 5.02 herein."
G. Paragraph (b) of Section 2.01 shall be restated in its
entirety as follows:
(b)(1)From time to time following the Initial Date of Deposit, the
Depositor is hereby authorized, in its discretion, to assign, convey to
and deposit with the Trustee (i) additional Securities, duly endorsed in
blank or accompanied by all necessary instruments of assignment and
transfer in proper form, (ii) Contract Obligations relating to such
additional Securities, accompanied by cash and/or Letter(s) of Credit as
specified in paragraph (c) of this Section 2.01, and/or (iii) cash (or a
Letter of Credit in lieu of cash) with instructions to purchase
additional Securities, in an amount equal to the portion of the Unit
Value of the Units created by such deposit attributable to the
Securities to be purchased pursuant to such instructions. Except as
provided in the following subparagraphs (2), (3) and (4) the Depositor,
in each case, shall ensure that each deposit of additional Securities
pursuant to this Section shall maintain, as nearly as practicable, the
Percentage Ratio. Each such deposit of additional Securities shall be
made pursuant to a Notice of Deposit of Additional Securities delivered
by the Depositor to the Trustee. Instructions to purchase additional
Securities shall be in writing, and shall specify the name of the
Security, CUSIP number, if any, aggregate amount, price or price range
and date to be purchased. When requested by the Trustee, the Depositor
shall act as broker to execute purchases in accordance with such
instructions; the Depositor shall be entitled to compensation therefor
in accordance with applicable law and regulations. The Trustee shall
have no liability for any loss or depreciation resulting from any
purchase made pursuant to the Depositor's instructions or made by the
Depositor as broker.
(2) Additional Securities (or Contract Obligations therefor) may,
at the Depositor's discretion, be deposited or purchased in round lots.
If the amount of the deposit is insufficient to acquire round lots of
each Security to be acquired, the additional Securities shall be
deposited or purchased in the order of the Security in the Trust most
under-represented immediately before the deposit with respect to the
Percentage Ratio.
(3) If at the time of a deposit of additional Securities,
Securities of an issue deposited on the Initial Date of Deposit (or of
an issue of Replacement Securities acquired to replace an issue
deposited on the Initial Date of Deposit) are unavailable, cannot be
purchased at reasonable prices or their purchase is prohibited or
restricted by applicable law, regulation or policies, the Depositor may
(i) deposit, or instruct the Trustee to purchase, in lieu thereof,
another issue of Securities or Replacement Securities or (ii) deposit
cash or a letter of credit in an amount equal to the valuation of the
issue of Securities whose acquisition is not feasible with instructions
to acquire such Securities of such issue when they become available.
(4) Any contrary authorization in the preceding subparagraphs (1)
through (3) notwithstanding, deposits of additional Securities made
after the 90-day period immediately following the Initial Date of
Deposit (except for deposits made to replace Failed Contract Obligations
if such deposits occur within 20 days from the date of a failure
occurring within such initial 90-day period) shall maintain exactly the
Percentage Ratio existing immediately prior to such deposit.
(5) In connection with and at the time of any deposit of
additional Securities pursuant to this Section 2.01(b), the Depositor
shall exactly replicate Cash (as defined below) received or receivable
by the Trust as of the date of such deposit. For purposes of this
paragraph, "Cash" means, as to the Capital Account, cash or other
property (other than Securities) on hand in the Capital Account or
receivable and to be credited to the Capital Account as of the date of
the deposit (other than amounts to be distributed solely to persons
other than holders of Units created by the deposit) and, as to the
Income Account, cash or other property (other than Securities) received
by the Trust as of the date of the deposit or receivable by the Trust in
respect of a record date for a payment on a Security which has occurred
or will occur before the Trust will be the holder of record of a
Security, reduced by the amount of any cash or other property received
or receivable on any Security allocable (in accordance with the
Trustee's calculations of distributions from the Income Account pursuant
to Section 3.05) to a distribution made or to be made in respect of a
Record Date occurring prior to the deposit. Such replication will be
made on the basis of a fraction, the numerator of which is the number of
Units created by the deposit and the denominator of which is the number
of Units which are outstanding immediately prior to the deposit.
H. The following shall be added immediately following the first
sentence of paragraph (c) of Section 2.01:
"The Trustee may allow the Depositor to substitute for any Letter(s) of
Credit deposited with the Trustee in connection with the deposits
described in Section 2.01(a) and (b) cash in an amount sufficient to
satisfy the obligations to which the Letter(s) of Credit relates. Any
substituted Letter(s) of Credit shall be released by the Trustee."
I. Section 2.03(a) of the Standard Terms and Conditions of Trust
shall be amended by adding the following sentence after the first
sentence of such section:
"The number of Units may be increased through a split of the Units or
decreased through a reverse split thereof, as directed in writing by the
Depositor, at any time when the Depositor is the only beneficial holder
of Units, which revised number of Units shall be recorded by the Trustee
on its books. The Trustee shall be entitled to rely on the Depositor's
direction as certification that no person other than the Depositor has a
beneficial interest in the Units and the Trustee shall have no liability
to any person for action taken pursuant to such direction."
J. Section 3.01 of the Standard Terms and Conditions of Trust
shall be replaced in its entirety with the following:
"Section 3.01. Initial Cost. The expenses incurred in establishing a
Trust, including the cost of the preparation and typesetting of the
registration statement, prospectuses (including preliminary
prospectuses), the indenture and other documents relating to the Trust,
printing of Certificates, Securities and Exchange Commission and state
blue sky registration fees, the costs of the initial valuation of the
portfolio and audit of the Trust, the initial fees and expenses of the
Trustee, and legal and other out-of-pocket expenses related thereto, but
not including the expenses incurred in the printing of preliminary
prospectuses and prospectuses, expenses incurred in the preparation and
printing of brochures and other advertising materials and any other
selling expenses, to the extent not borne by the Depositor, shall be
borne by the Trust. To the extent the funds in the Income and Capital
Accounts of the Trust shall be insufficient to pay the expenses borne by
the Trust specified in this Section 3.01, the Trustee shall advance out
of its own funds and cause to be deposited and credited to the Income
Account such amount as may be required to permit payment of such
expenses. The Trustee shall be reimbursed for such advance on each
Record Date from funds on hand in the Income Account or, to the extent
funds are not available in such Account, from the Capital Account, in
the amount deemed to have accrued as of such Record Date as provided in
the following sentence (less prior payments on account of such advances,
if any), and the provisions of Section 6.04 with respect to the
reimbursement of disbursements for Trust expenses, including, without
limitation, the lien in favor of the Trustee therefor and the authority
to sell Securities as needed to fund such reimbursement, shall apply to
the payment of expenses and the amounts advanced pursuant to this
Section. For the purposes of the preceding sentence and the addition
provided in clause (4) of the first sentence of Section 5.01, the
expenses borne by the Trust pursuant to this Section shall be deemed to
have been paid on the date of the Trust Agreement and to accrue at a
daily rate over the time period specified for their amortization
provided in the Prospectus; provided, however, that nothing herein shall
be deemed to prevent, and the Trustee shall be entitled to, full
reimbursement for any advances made pursuant to this Section no later
than the termination of the Trust. For purposes of calculating the
accrual of organizational expenses under this Section 3.01, the Trustee
shall rely on the written estimates of such expenses provided by the
Depositor pursuant to Section 5.01."
K. The second paragraph of Section 3.02 of the Standard
Terms and Conditions is hereby deleted and replaced with the following
sentence:
"Any non-cash distributions (other than a non-taxable distribution of
the shares of the distributing corporation which shall be retained by a
Trust) received by a Trust shall be dealt with in the manner described
at Section 3.11, herein, and shall be retained or disposed of by such
Trust according to those provisions. The proceeds of any disposition
shall be credited to the Income Account of a Trust. Neither the Trustee
nor the Depositor shall be liable or responsible in any way for
depreciation or loss incurred by reason of any such sale."
L. Section 3.05.II(a) of the Standard Terms and
Conditions of Trust is hereby amended to read in its entirety as follows:
"II. (a) On each Distribution Date, the Trustee shall distribute to
each Unit holder of record at the close of business on the Record Date
immediately preceding such Distribution Date an amount per Unit equal to
such Unit holder's Income Distribution (as defined below), plus such
Unit holder's pro rata share of the balance of the Capital Account
(except for monies on deposit therein required to purchase Contract
Obligations) computed as of the close of business on such Record Date
after deduction of any amounts provided in Subsection I, provided,
however, that the Trustee shall not be required to make a distribution
from the Capital Account unless the amount available for distribution
shall equal $1.00 per 100 Units.
Each Trust shall provide the following distribution elections: (1)
distributions to be made by check mailed to the post office address of
the Unit holder as it appears on the registration books of the Trustee,
or (2) if provided for in the Prospectus, the following reinvestment
option:
The Trustee will, for any Unit holder who provides the Trustee written
instruction, properly executed and in form satisfactory to the Trustee,
received by the Trustee no later than its close of business 10 business
days prior to a Record Date (the "Reinvestment Notice Date"), reinvest
such Unit holder's distribution from the Income and Capital Accounts in
Units of the Trust, purchased from the Depositor, to the extent the
Depositor shall make Units available for such purchase, at the
Depositor's offering price as of the third business day prior to the
following Distribution Date, and at such reduced sales charge as may be
described in the prospectus for the Trusts. If, for any reason, the
Depositor does not have Units of the Trust available for purchase, the
Trustee shall distribute such Unit holder's distribution from the Income
and Capital Accounts in the manner provided in clause (1) of the
preceding paragraph. The Trustee shall be entitled to rely on a written
instruction received as of the Reinvestment Notice Date and shall not be
affected by any subsequent notice to the contrary. The Trustee shall
have no responsibility for any loss or depreciation resulting from any
reinvestment made in accordance with this paragraph, or for any failure
to make such reinvestment in the event the Depositor does not make Units
available for purchase.
Any Unit holder who does not effectively elect reinvestment in Units of
their respective Trust pursuant to the preceding paragraph shall receive
a cash distribution in the manner provided in clause (1) of the second
preceding paragraph."
M. Section 3.05.II(b) of the Standard Terms and
Conditions of Trust is hereby amended to read in its entirety as follows:
"II. (b) For purposes of this Section 3.05, the Unit holder's
Income Distribution shall be equal to such Unit holder's pro rata share
of the cash balance in the Income Account computed as of the close of
business on the Record Date immediately preceding such Income
Distribution after deduction of (i) the fees and expenses then
deductible pursuant to Section 3.05.I. and (ii) the Trustee's estimate
of other expenses properly chargeable to the Income Account pursuant to
the Indenture which have accrued, as of such Record Date, or are
otherwise properly attributable to the period to which such Income
Distribution relates."
N. Paragraph (c) of Subsection II of Section 3.05 of
the Standard Terms and Conditions of Trust is hereby amended to read as
follows:
"On each Distribution Date the Trustee shall distribute to each Unit
holder of record at the close of business on the Record Date immediately
preceding such Distribution Date an amount per Unit equal to such Unit
holder's pro rata share of the balance of the Capital Account (except
for monies on deposit therein required to purchase Contract Obligations)
computed as of the close of business on such Record Date after deduction
of any amounts provided in Subsection I."
O. Section 3.05 of Article III of the Standard Terms and
Conditions of Trust is hereby amended to include the following subsection:
"Section 3.05.I.(e)deduct from the Interest Account or, to the extent
funds are not available in such Account, from the Capital Account and
pay to the Depositor the amount that it is entitled to receive pursuant
to Section 3.14.
P. Section 3.11 of the Standard Terms and Conditions of
Trust is hereby deleted in its entirety and replaced with the following
language:
"Section 3.11. Notice to Depositor.
In the event that the Trustee shall have been notified at any time of
any action to be taken or proposed to be taken by at least a legally
required number of holders of any Securities deposited in a Trust, the
Trustee shall take such action or omit from taking any action, as
appropriate, so as to insure that the Securities are voted as closely as
possible in the same manner and the same general proportion as are the
Securities held by owners other than such Trust.
In the event that an offer by the issuer of any of the Securities or any
other party shall be made to issue new securities, or to exchange
securities, for Trust Securities, the Trustee shall reject such offer.
However, should any issuance, exchange or substitution be effected
notwithstanding such rejection or without an initial offer, any
securities, cash and/or property received shall be deposited hereunder
and shall be promptly sold, if securities or property, by the Trustee
pursuant to the Depositor's direction, unless the Depositor advises the
Trustee to keep such securities or property. The Depositor may rely on
the Portfolio Supervisor in so advising the Trustee. The cash received
in such exchange and cash proceeds of any such sales shall be
distributed to Unit holders on the next distribution date in the manner
set forth in Section 3.05 regarding distributions from the Capital
Account. The Trustee shall not be liable or responsible in any way for
depreciation or loss incurred by reason of any such sale.
Neither the Depositor nor the Trustee shall be liable to any person for
any action or failure to take action pursuant to the terms of this
Section 3.11.
Whenever new securities or property is received and retained by a Trust
pursuant to this Section 3.11, the Trustee shall, within five days
thereafter, mail to all Unit holders of such Trust notices of such
acquisition unless legal counsel for such Trust determines that such
notice is not required by The Investment Company Act of 1940, as amended."
Q. The first sentence of Section 3.13. shall be amended to read
as follows:
"As compensation for providing supervisory portfolio services under this
Indenture, the Portfolio Supervisor shall receive, in arrears, against a
statement or statements therefor submitted to the Trustee monthly or
annually an aggregate annual fee in an amount which shall not exceed
$0.0035 per Unit outstanding as of January 1 of such year except for a
Trust during the year or years in which an initial offering period as
determined in Section 4.01 of this Indenture occurs, in which case the
fee for a month is based on the number of Units outstanding at the end
of such month (such annual fee to be pro rated for any calendar year in
which the Portfolio Supervisor provides services during less than the
whole of such year), but in no event shall such compensation when
combined with all compensation received from other series of the Trust
for providing such supervisory services in any calendar year exceed the
aggregate cost to the Portfolio Supervisor for the cost of providing
such services."
R. Article III of the Standard Terms and Conditions of Trust is
hereby amended by inserting the following paragraphs which shall be
entitled Section 3.14.:
"Section 3.14.Bookkeeping and Administrative Expenses. As compensation
for providing bookkeeping and other administrative services of a
character described in Section 26(a)(2)(C) of the Investment Company Act
of 1940 to the extent such services are in addition to, and do not
duplicate, the services to be provided hereunder by the Trustee or the
Portfolio Supervisor, the Depositor shall receive against a statement or
statements therefor submitted to the Trustee monthly or annually an
aggregate annual fee in an amount as set forth in the Prospectus times
the number of Units outstanding as of January 1 of such year except for
a year or years in which an initial offering period as determined by
Section 4.01 of this Indenture occurs, in which case the fee for a month
is based on the number of Units outstanding at the end of such month
(such annual fee to be pro rated for any calendar year in which the
Depositor provides service during less than the whole of such year), but
in no event shall such compensation when combined with all compensation
received from other unit investment trusts for which the Depositor
hereunder is acting as Depositor for providing such bookkeeping and
administrative services in any calendar year exceed the aggregate cost
to the Depositor providing services to such unit investment trusts.
Such compensation may, from time to time, be adjusted provided that the
total adjustment upward does not, at the time of such adjustment, exceed
the percentage of the total increase, after the date hereof, in consumer
prices for services as measured by the United States Department of Labor
Consumer Price Index entitled "All Services Less Rent of Shelter" or
similar index, if such index should no longer be published. The consent
or concurrence of any Unit holder hereunder shall not be required for
any such adjustment or increase. Such compensation shall be paid by the
Trustee, upon receipt of an invoice therefor from the Depositor, upon
which, as to the cost incurred by the Depositor of providing services
hereunder the Trustee may rely, and shall be charged against the Income
and Capital Accounts on or before the Distribution Date following the
Monthly Record Date on which such period terminates. The Trustee shall
have no liability to any Certificateholder or other person for any
payment made in good faith pursuant to this Section.
If the cash balance in the Income and Capital Accounts shall be
insufficient to provide for amounts payable pursuant to this Section
3.14, the Trustee shall have the power to sell (i) Securities from the
current list of Securities designated to be sold pursuant to Section
5.02 hereof, or (ii) if no such Securities have been so designated, such
Securities as the Trustee may see fit to sell in its own discretion, and
to apply the proceeds of any such sale in payment of the amounts payable
pursuant to this Section 3.14.
Any moneys payable to the Depositor pursuant to this Section 3.14 shall
be secured by a prior lien on the Trust Fund except that no such lien
shall be prior to any lien in favor of the Trustee under the provisions
of Section 6.04 herein.
S. Article III of the Standard Terms and Conditions of Trust is
hereby amended by inserting the following paragraph which shall be
entitled Section 3.15:
"Section 3.15. Deferred Sales Charge. If the prospectus related to the
Trust specifies a deferred sales charge, the Trustee shall, on the dates
specified in and as permitted by such Prospectus (the "Deferred Sales
Charge Payment Dates"), withdraw from the Capital Account, an amount per
Unit specified in such Prospectus and credit such amount to a special
non-Trust account designated by the Depositor out of which the deferred
sales charge will be distributed to or on the order of the Depositor on
such Deferred Sales Charge Payment Dates (the "Deferred Sales Charge
Account"). If the balance in the Capital Account is insufficient to
make such withdrawal, the Trustee shall, as directed by the Depositor,
advance funds in an amount required to fund the proposed withdrawal and
be entitled to reimbursement of such advance upon the deposit of
additional monies in the Capital Account, and/or sell Securities and
credit the proceeds thereof to the Deferred Sales Charge Account,
provided, however, that the aggregate amount advanced by the Trustee at
any time for payment of the deferred sales charge shall not exceed
$15,000. Such direction shall, if the Trustee is directed to sell a
Security, identify the Security to be sold and include instructions as
to the execution of such sale. In the absence of such direction by the
Depositor, the Trustee shall sell Securities sufficient to pay the
deferred sales charge (and any unreimbursed advance then outstanding) in
full, and shall select Securities to be sold in such manner as will
maintain (to the extent practicable) the relative proportion of number
of shares of each Security then held. The proceeds of such sales, less
any amounts paid to the Trustee in reimbursement of its advances, shall
be credited to the Deferred Sales Charge Account. If a Unit holder
redeems Units prior to full payment of the deferred sales charge, the
Trustee shall, if so provided in the related Prospectus, on the
Redemption Date, withhold from the Redemption Price payable to such Unit
holder an amount equal to the unpaid portion of the deferred sales
charge and distribute such amount to the Deferred Sales Charge Account.
If the Trust is terminated for reasons other than that set forth in
Section 6.01(g), the Trustee shall, if so provided in the related
Prospectus, on the termination of the Trust, withhold from the proceeds
payable to Unit holders an amount equal to the unpaid portion of the
deferred sales charge and distribute such amount to the Deferred Sales
Charge Account. If the Trust is terminated pursuant to Section 6.01(g),
the Trustee shall not withhold from the proceeds payable to Unit holders
any amounts of unpaid deferred sales charges. If pursuant to Section
5.02 hereof, the Depositor shall purchase a Unit tendered for redemption
prior to the payment in full of the deferred sales charge due on the
tendered Unit, the Depositor shall pay to the Unit holder the amount
specified under Section 5.02 less the unpaid portion of the deferred
sales charge. All advances made by the Trustee pursuant to this Section
shall be secured by a lien on the Trust prior to the interest of the
Unit holders."
T. Notwithstanding anything to the contrary in Sections 3.15 and
4.05 of the Standard Terms and Conditions of Trust, so long as Nike
Securities L.P. is acting as Depositor, the Trustee shall have no power
to remove the Portfolio Supervisor.
U. Section 5.01 of the Standard Terms and Conditions of Trust
shall be amended as follows:
(i) The first sentence of the first paragraph of Section 5.01
shall be amended by deleting the phrase "together with all other assets
of the Trust" at the end of such sentence and adding the following at
the conclusion thereof: ", plus (4) amounts representing organizational
expenses paid from the Trust less amounts representing accrued
organizational expenses of the Trust, plus (5) all other assets of the
Trust."
(ii) The following shall be added at the end of the first paragraph
of Section 5.01:
Until the Depositor has informed the Trustee that there will be no
further deposits of Additional Securities pursuant to section 2.01(b),
the Depositor shall provide the Trustee with written estimates of (i)
the total organizational expenses to be borne by the Trust pursuant to
Section 3.01 and (ii) the total number of Units to be issued in
connection with the initial deposit and all anticipated deposits of
additional Securities. For purposes of calculating the Trust Fund
Evaluation and Unit Value, the Trustee shall treat all such anticipated
expenses as having been paid and all liabilities therefor as having been
incurred, and all Units as having been issued, in each case on the date
of the Trust Agreement, and, in connection with each such calculation,
shall take into account a pro rata portion of such expense and liability
based on the actual number of Units issued as of the date of such
calculation. In the event the Trustee is informed by the Depositor of a
revision in its estimate of total expenses or total Units and upon the
conclusion of the deposit of additional Securities, the Trustee shall
base calculations made thereafter on such revised estimates or actual
expenses, respectively, but such adjustment shall not affect
calculations made prior thereto and no adjustment shall be made in
respect thereof.
V. Section 5.02 of the Standard Terms and Conditions of
Trust is amended by adding the following after the second paragraph of
such section:
"Notwithstanding anything herein to the contrary, in the event that any
tender of Units pursuant to this Section 5.02 would result in the
disposition by the Trustee of less than a whole Security, the Trustee
shall distribute cash in lieu thereof and sell such Securities as
directed by the Sponsors as required to make such cash available.
Subject to the restrictions set forth in the Prospectus, Unit holders
may redeem 2,500 Units or more of a Trust and request a distribution in
kind of (i) such Unit holder's pro rata portion of each of the
Securities in such Trust, in whole shares, and (ii) cash equal to such
Unit holder's pro rata portion of the Income and Capital Accounts as
follows: (x) a pro rata portion of the net proceeds of sale of the
Securities representing any fractional shares included in such Unit
holder's pro rata share of the Securities and (y) such other cash as may
properly be included in such Unit holder's pro rata share of the sum of
the cash balances of the Income and Capital Accounts in an amount equal
to the Unit Value determined on the basis of a Trust Fund Evaluation
made in accordance with Section 5.01 determined by the Trustee on the
date of tender less amounts determined in clauses (i) and (ii)(x) of
this Section. Subject to Section 5.05 with respect to Rollover Unit
holders, if applicable, to the extent possible, distributions of
Securities pursuant to an in kind redemption of Units shall be made by
the Trustee through the distribution of each of the Securities in book-
entry form to the account of the Unit holder's bank or broker-dealer at
the Depository Trust Company. Any distribution in kind will be reduced
by customary transfer and registration charges."
W. Paragraph (g) of Section 6.01 of the Standard Terms
and Conditions of Trust is hereby amended by inserting the following
after the first word thereof:
"(i) the value of any Trust as shown by an evaluation by the Trustee
pursuant to Section 5.01 hereof shall be less than the lower of
$2,000,000 or 20% of the total value of Securities deposited in such
Trust during the initial offering period, or (ii)"
X. Section 8.02 of the Standard Terms and Conditions of Trust
shall be amended as follows:
(i) The fourth sentence of the second paragraph shall be deleted and
replaced with the following:
"The Trustee will honor duly executed requests for in-kind distributions
received (accompanied by the electing Unit holder's Certificate, if
issued) by the close of business ten business days prior to the
Mandatory Termination Date."
(ii) The first sentence of the fourth paragraph shall be deleted and
replaced with the following:
"Commencing no earlier than the business day following that date on
which Unit holders must submit to the Trustee notice of their request to
receive an in-kind distribution of Securities at termination, the
Trustee will liquidate the Securities not segregated for in-kind
distributions during such period and in such daily amounts as the
Depositor shall direct."
IN WITNESS WHEREOF, Nike Securities L.P., The Chase Manhattan Bank and
First Trust Advisors L.P. have each caused this Trust Agreement to be
executed and the respective corporate seal to be hereto affixed and
attested (if applicable) by authorized officers; all as of the day,
month and year first above written.
NIKE SECURITIES L.P., Depositor
By Robert M. Porcellino
Vice President
THE CHASE MANHATTAN BANK, Trustee
By Rosalia A. Raviele
Vice President
[SEAL]
ATTEST:
Joan Currie
Assistant Treasurer
FIRST TRUST ADVISORS L.P., Evaluator
By Robert M. Porcellino
Vice President
FIRST TRUST ADVISORS L.P.,
Portfolio Supervisor
By Robert M. Porcellino
Vice President
SCHEDULE A TO TRUST AGREEMENT
Securities Initially Deposited
FT 250
(Note: Incorporated herein and made a part hereof for the Trust is the
"Schedule of Investments" for the Trust as set forth in the Prospectus.)
CHAPMAN AND CUTLER
111 WEST MONROE STREET
CHICAGO, ILLINOIS 60603
April 15, 1998
Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
Re: FT 250
Gentlemen:
We have served as counsel for Nike Securities L.P., as
Sponsor and Depositor of FT 250 in connection with the
preparation, execution and delivery of a Trust Agreement dated
April 15, 1998 among Nike Securities L.P., as Depositor, The
Chase Manhattan Bank, as Trustee and First Trust Advisors L.P. as
Evaluator and Portfolio Supervisor, pursuant to which the
Depositor has delivered to and deposited the Securities listed in
Schedule A to the Trust Agreement with the Trustee and pursuant
to which the Trustee has issued to or on the order of the
Depositor a certificate or certificates representing units of
fractional undivided interest in and ownership of the Fund
created under said Trust Agreement.
In connection therewith, we have examined such pertinent
records and documents and matters of law as we have deemed
necessary in order to enable us to express the opinions
hereinafter set forth.
Based upon the foregoing, we are of the opinion that:
1. the execution and delivery of the Trust Agreement and
the execution and issuance of certificates evidencing the Units
in the Fund have been duly authorized; and
2. the certificates evidencing the Units in the Fund when
duly executed and delivered by the Depositor and the Trustee in
accordance with the aforementioned Trust Agreement, will
constitute valid and binding obligations of the Fund and the
Depositor in accordance with the terms thereof.
We hereby consent to the filing of this opinion as an
exhibit to the Registration Statement (File No. 333-48255)
relating to the Units referred to above, to the use of our name
and to the reference to our firm in said Registration Statement
and in the related Prospectus.
Respectfully submitted,
CHAPMAN AND CUTLER
EFF:erg
CHAPMAN AND CUTLER
111 WEST MONROE STREET
CHICAGO, ILLINOIS 60603
April 15, 1998
Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
The Chase Manhattan Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2413
Re: FT 250
Gentlemen:
We have acted as counsel for Nike Securities L.P., Depositor
of FT 250 (the "Fund"), in connection with the issuance of units
of fractional undivided interest in the Trusts of said Fund (the
"Trusts"), under a Trust Agreement, dated April 15, 1998 (the
"Indenture"), among Nike Securities L.P., as Depositor, The Chase
Manhattan Bank, as Trustee and Muller Data Corporation, as
Evaluator, and First Trust Advisors L.P., as Portfolio
Supervisor.
In this connection, we have examined the Registration
Statement, the form of Prospectus proposed to be filed with the
Securities and Exchange Commission, the Indenture and such other
instruments and documents we have deemed pertinent. The opinions
expressed herein assume that each Trust will be administered, and
investments by the Trusts from proceeds of subsequent deposits,
if any, will be made, in accordance with the terms of the
Indenture. Each Trust holds Equity Securities as such term is
defined in the Prospectus. For purposes of the following
discussion and opinion, it is assumed that each Equity Security
is equity for Federal income tax purposes.
Based upon the foregoing and upon an investigation of such
matters of law as we consider to be applicable, we are of the
opinion that, under existing United States Federal income tax
law:
I. Each Trust is not an association taxable as a
corporation for Federal income tax purposes; each Unit holder
will be treated as the owner of a pro rata portion of each of the
assets of the Trust under the Internal Revenue Code of 1986 (the
"Code") in the proportion that the number of Units held by him
bears to the total number of Units outstanding; under Subpart E,
Subchapter J of Chapter 1 of the Code, income of each Trust will
be treated as income of the Unit holders in the proportion
described above; and an item of Trust income will have the same
character in the hands of a Unit holder as it would have in the
hands of the Trustee. Each Unit holder will be considered to
have received his pro rata share of income derived from each
Trust asset when such income is considered to be received by the
Trust.
II. The price a Unit holder pays for his Units, generally
including sales charges, is allocated among his pro rata portion
of each Equity Security held by such Trust (in proportion to the
fair market values thereof on the valuation date closest to the
date the Unit holder purchases his Units) in order to determine
his tax basis for his pro rata portion of each Equity Security
held by such Trust. For Federal income tax purposes, a Unit
holder's pro rata portion of distributions of cash or property by
a corporation with respect to an Equity Security ("dividends" as
defined by Section 316 of the Code) is taxable as ordinary income
to the extent of such corporation's current and accumulated
"earnings and profits." A Unit holder's pro rata portion of
dividends paid on such Equity Security which exceeds such current
and accumulated earnings and profits will first reduce a Unit
holder's tax basis in such Equity Security, and to the extent
that such dividends exceed a Unit holder's tax basis in such
Equity Security shall be treated as gain from the sale or
exchange of property.
III. Gain or loss will be recognized to a Unit holder
(subject to various nonrecognition provisions under the Code)
upon redemption or sale of his Units, except to the extent an in
kind distribution of stock is received by such Unit holder from
the Trust as discussed below. Such gain or loss is measured by
comparing the proceeds of such redemption or sale with the
adjusted basis of his Units. Before adjustment, such basis would
normally be cost if the Unit holder had acquired his Units by
purchase. Such basis will be reduced, but not below zero, by the
Unit holder's pro rata portion of dividends with respect to each
Equity Security which is not taxable as ordinary income.
IV. If the Trustee disposes of a Trust asset (whether by
sale, exchange, liquidation, redemption, payment on maturity or
otherwise) gain or loss will be recognized to the Unit holder
(subject to various nonrecognition provisions under the Code) and
the amount thereof will be measured by comparing the Unit
holder's aliquot share of the total proceeds from the transaction
with his basis for his fractional interest in the asset disposed
of. Such basis is ascertained by apportioning the tax basis for
his Units (as of the date on which his Units were acquired) among
each of the Trust assets of such Trust (as of the date on which
his Units were acquired) ratably according to their values as of
the valuation date nearest the date on which he purchased such
Units. A Unit holder's basis in his Units and of his fractional
interest in each Trust asset must be reduced, but not below zero,
by the Unit holder's pro rata portion of dividends with respect
to each Equity Security which is not taxable as ordinary income.
V. Under the Indenture, under certain circumstances, a
Unit holder tendering Units for redemption may request an in kind
distribution of Equity Securities upon the redemption of Units or
upon the termination of the Trust. As previously discussed,
prior to the redemption of Units or the termination of the Trust,
a Unit holder is considered as owning a pro rata portion of each
of the particular Trust's assets. The receipt of an in kind
distribution will result in a Unit holder receiving an undivided
interest in whole shares of stock and possibly cash. The
potential federal income tax consequences which may occur under
an in kind distribution with respect to each Equity Security
owned by the Trust will depend upon whether or not a United
States Unit holder receives cash in addition to Equity
Securities. An "Equity Security" for this purpose is a
particular class of stock issued by a particular corporation. A
Unit holder will not recognize gain or loss if a Unit holder only
receives Equity Securities in exchange for his or her pro rata
portion in the Equity Securities held by the Trust. However, if
a Unit holder also receives cash in exchange for a fractional
share of an Equity Security held by the Trust, such Unit holder
will generally recognize gain or loss based upon the difference
between the amount of cash received by the Unit holder and his
tax basis in such fractional share of an Equity Security held by
the Trust. The total amount of taxable gains (or losses)
recognized upon such redemption will generally equal the sum of
the gain (or loss) recognized under the rules described above by
the redeeming Unit holder with respect to each Equity Security
owned by the Trust.
A domestic corporation owning Units in a Trust may be
eligible for the 70% dividends received deduction pursuant to
Section 243(a) of the Code with respect to such Unit holders' 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), subject to
the limitations imposed by Sections 246 and 246A of the Code.
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.
Section 67 of the Code provides that 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. Unit holders may be
required to treat some or all of the expenses of a Trust as
miscellaneous itemized deductions subject to this limitation.
A Unit holder will recognize taxable gain (or loss)when all
or part of the pro rata interest in an Equity Security is either
sold by the Trust or redeemed or when a Unit holder disposes of
his Units in a taxable transaction, in each case for an amount
greater (or less) than his tax basis therefor; subject to various
nonrecognition provisions of the Code.
A Unit holder will recognize taxable gain (or loss) when all
or part of the pro rata interest in an Equity Security is either
sold by the Trust or redeemed or when a Unit holder disposes of
his Units in a taxable transactions, in each case for an amount
greater (or less) than his tax basis therefor; subject to
various nonrecognition provisions of the Code.
It should be noted that payments to the Trust of dividends
on Equity Securities that are attributable to foreign
corporations may be subject to foreign withholding taxes and Unit
holders should consult their tax advisers regarding the potential
tax consequences relating to the payment of any such withholding
taxes by the Trust. Any dividends withheld as a result thereof
will nevertheless be treated as income to the Unit holders.
Because under the grantor trust rules, an investor is deemed to
have paid directly his share of foreign taxes that have been paid
or accrued, if any, an investor may be entitled to a foreign tax
credit or deduction for United States tax purposes with respect
to such taxes. A required holding period is imposed, however,
for such credit.
Any gain or loss recognized on a sale or exchange will,
under current law, generally be capital gain or loss.
The scope of this opinion is expressly limited to the
matters set forth herein, and, except as expressly set forth
above, we express no opinion with respect to any other taxes,
including foreign, state or local taxes or collateral tax
consequences with respect to the purchase, ownership and
disposition of Units.
We hereby consent to the filing of this opinion as an
exhibit to the Registration Statement (File No. 333-48255)
relating to the Units referred to above and to the use of our
name and to the reference to our firm in said Registration
Statement and in the related Prospectus.
Very truly yours,
CHAPMAN AND CUTLER
EFF/erg
CARTER, LEDYARD & MILBURN
COUNSELLORS AT LAW
2 WALL STREET
NEW YORK, NEW YORK 10005
April 15, 1998
The Chase Manhattan Bank, as Trustee of
FT 250
4 New York Plaza, 6th Floor
New York, New York 10004-2413
Attention: Mr. Thomas Porrazzo
Vice President
Re: FT 250
Dear Sirs:
We are acting as special counsel with respect to New York
tax matters for the unit investment trust or trusts contained in
FT 250 (each, a "Trust"), which will be established under certain
Standard Terms and Conditions of Trust dated November 20, 1991,
and a related Trust Agreement dated as of today (collectively,
the "Indenture") among Nike Securities L.P., as Depositor (the
"Depositor"), First Trust Advisors L.P., as Evaluator, First
Trust Advisors L.P., as Portfolio Supervisor, and The Chase
Manhattan Bank, as Trustee (the "Trustee"). Pursuant to the
terms of the Indenture, units of fractional undivided interest in
the Trust (the "Units") will be issued in the aggregate number
set forth in the Indenture.
We have examined and are familiar with originals or
certified copies, or copies otherwise identified to our
satisfaction, of such documents as we have deemed necessary or
appropriate for the purpose of this opinion. In giving this
opinion, we have relied upon the two opinions, each dated today
and addressed to the Trustee, of Chapman and Cutler, counsel for
the Depositor, with respect to the matters of law set forth
therein.
Based upon the foregoing, we are of the opinion that:
1. The Trust will not constitute an association taxable as
a corporation under New York law, and accordingly will not be
subject to the New York State franchise tax or the New York City
general corporation tax.
2. Under the income tax laws of the State and City of New
York, the income of the Trust will be considered the income of
the holders of the Units.
We consent to the filing of this opinion as an exhibit to
the Registration Statement (No. 333-48255) filed with the
Securities and Exchange Commission with respect to the
registration of the sale of the Units and to the references to
our name under the captions "What is the Federal Tax Status of
Unit-holders?" and "Legal Opinions" in such Registration
Statement and the preliminary prospectus included therein.
Very truly yours,
CARTER, LEDYARD & MILBURN
CARTER, LEDYARD & MILBURN
COUNSELLORS AT LAW
2 WALL STREET
NEW YORK, NEW YORK 10005
April 15, 1998
The Chase Manhattan Bank, as Trustee of
FT 250
4 New York Plaza, 6th Floor
New York, New York 10004-2413
Attention: Mr. Thomas Porrazzo
Vice President
Re: FT 250
Dear Sirs:
We are acting as counsel for The Chase Manhattan Bank
("Chase") in connection with the execution and delivery of a
Trust Agreement ("the Trust Agreement") dated today's date (which
Trust Agreement incorporates by reference certain Standard Terms
and Conditions of Trust dated November 20, 1991, and the same are
collectively referred to herein as the "Indenture") among Nike
Securities L.P., as Depositor (the "Depositor"), First Trust
Advisors L.P., as Evaluator; First Trust Advisors L.P., as
Portfolio Supervisor; and Chase, as Trustee (the "Trustee"),
establishing the unit investment trust or trusts included in FT
250 (each, a "Trust"), and the confirmation by Chase, as Trustee
under the Indenture, that it has registered on the registration
books of the Trust the ownership by the Depositor of a number of
units constituting the entire interest in the Trust (such
aggregate units being herein called "Units"), each of which
represents an undivided interest in the respective Trust which
consists of common stocks (including, confirmations of contracts
for the purchase of certain stocks not delivered and cash, cash
equivalents or an irrevocable letter of credit or a combination
thereof, in the amount required for such purchase upon the
receipt of such stocks), such stocks being defined in the
Indenture as Securities and referenced in the Schedule to the
Indenture.
We have examined the Indenture, a specimen of the
certificates to be issued hereunder (the "Certificates"), the
Closing Memorandum dated todays date, and such other documents
as we have deemed necessary in order to render this opinion.
Based on the foregoing, we are of the opinion that:
1. Chase is a duly organized and existing corporation
having the powers of a Trust Company under the laws of the State
of New York.
2. The Trust Agreement has been duly executed and
delivered by Chase and, assuming due execution and delivery by
the other parties thereto, constitutes the valid and legally
binding obligation of Chase.
3. The Certificates are in proper form for execution and
delivery by Chase, as Trustee.
4. Chase, as Trustee, has registered on the registration
books of the Trust the ownership of the Units by the Depositor.
Upon receipt of confirmation of the effectiveness of the
registration statement for the sale of the Units filed with the
Securities and Exchange Commission under the Securities Act of
1933, the Trustee may deliver Certificates for such Units, in
such names and denominations as the Depositor may request, to or
upon the order of the Depositor as provided in the Closing
Memorandum.
5. Chase, as Trustee, may lawfully advance to the Trust
amounts as may be necessary to provide periodic interest
distributions of approximately equal amounts, and be reimbursed,
without interest, for any such advances from funds in the
interest account, as provided in the Indenture.
In rendering the foregoing opinion, we have not considered,
among other things, whether the Securities have been duly
authorized and delivered.
Very truly yours,
CARTER, LEDYARD & MILBURN
First Trust Advisors L.P.
1001 Warrenville Road
Lisle, Illinois 60532
April 15, 1998
Nike Securities L.P.
1001 Warrenville Road
Lisle, IL 60532
Re: FT 250
Gentlemen:
We have examined the Registration Statement File No.
333-48255 for the above captioned fund. We hereby consent to the
use in the Registration Statement of the references to First
Trust Advisors L.P. as evaluator.
You are hereby authorized to file a copy of this letter with
the Securities and Exchange Commission.
Sincerely,
First Trust Advisors L.P.
Robert M. Porcellino
Vice President
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND> This schedule contains summary financial information extracted
from Amendment number 1 to form S-6 and is qualified in its entirety by
reference to such Amendment number 1 to form S-6.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> Communications Growth Trust, Series 2
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> Other
<FISCAL-YEAR-END> APR-15-1998
<PERIOD-START> APR-15-1998
<PERIOD-END> APR-15-1998
<INVESTMENTS-AT-COST> 148,725
<INVESTMENTS-AT-VALUE> 148,725
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 148,725
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 148,725
<SHARES-COMMON-STOCK> 15,023
<SHARES-COMMON-PRIOR> 15,023
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 148,725
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND> This schedule contains summary financial information extracted
from Amendment number 1 to form S-6 and is qualified in its entirety by
reference to such Amendment number 1 to form S-6.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> Fundamental Value Trust Series
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> Other
<FISCAL-YEAR-END> APR-15-1998
<PERIOD-START> APR-15-1998
<PERIOD-END> APR-15-1998
<INVESTMENTS-AT-COST> 148,633
<INVESTMENTS-AT-VALUE> 148,633
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 148,633
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 148,633
<SHARES-COMMON-STOCK> 15,013
<SHARES-COMMON-PRIOR> 15,013
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 148,633
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND> This schedule contains summary financial information extracted
from Amendment number 1 to form S-6 and is qualified in its entirety by
reference to such Amendment number 1 to form S-6.
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> Insurance Growth Trust Series
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> Other
<FISCAL-YEAR-END> APR-15-1998
<PERIOD-START> APR-15-1998
<PERIOD-END> APR-15-1998
<INVESTMENTS-AT-COST> 148,906
<INVESTMENTS-AT-VALUE> 148,906
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 148,906
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 148,906
<SHARES-COMMON-STOCK> 15,041
<SHARES-COMMON-PRIOR> 15,041
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 148,906
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND> This schedule contains summary financial information extracted
from Amendment number 1 to form S-6 and is qualified in its entirety by
reference to such Amendment number 1 to form S-6.
</LEGEND>
<SERIES>
<NUMBER> 4
<NAME> Internet Growth Trust, Series 4
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> Other
<FISCAL-YEAR-END> APR-15-1998
<PERIOD-START> APR-15-1998
<PERIOD-END> APR-15-1998
<INVESTMENTS-AT-COST> 148,311
<INVESTMENTS-AT-VALUE> 148,311
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 148,311
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 148,311
<SHARES-COMMON-STOCK> 14,981
<SHARES-COMMON-PRIOR> 14,981
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 148,311
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND> This schedule contains summary financial information extracted
from Amendment number 1 to form S-6 and is qualified in its entirety by
reference to such Amendment number 1 to form S-6.
</LEGEND>
<SERIES>
<NUMBER> 5
<NAME> Media & Entertainment Growth Trust,
Series 2
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> Other
<FISCAL-YEAR-END> APR-15-1998
<PERIOD-START> APR-15-1998
<PERIOD-END> APR-15-1998
<INVESTMENTS-AT-COST> 148,604
<INVESTMENTS-AT-VALUE> 148,604
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 148,604
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 148,604
<SHARES-COMMON-STOCK> 15,010
<SHARES-COMMON-PRIOR> 15,010
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 148,604
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND> This schedule contains summary financial information extracted
from Amendment number 1 to form S-6 and is qualified in its entirety by
reference to such Amendment number 1 to form S-6.
</LEGEND>
<SERIES>
<NUMBER> 6
<NAME> Medical Growth Trust Series
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> Other
<FISCAL-YEAR-END> APR-15-1998
<PERIOD-START> APR-15-1998
<PERIOD-END> APR-15-1998
<INVESTMENTS-AT-COST> 148,906
<INVESTMENTS-AT-VALUE> 148,906
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 148,906
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 148,906
<SHARES-COMMON-STOCK> 15,041
<SHARES-COMMON-PRIOR> 15,041
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 148,906
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
