NUVEEN UNIT TRUSTS SERIES 37, 497, 1999-03-24

NUVEEN UNIT TRUSTS SERIES 37
497, 1999-03-24

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<PAGE>

[NUVEEN LOGO]
Defined Portfolios

Nuveen Unit Trusts, Series 37

Nuveen Dow JonesSM Energy Sector Portfolio, March 1999
Nuveen Dow JonesSM Financial Services Sector Portfolio, March 1999
Nuveen Dow JonesSM Pharmaceutical Sector Portfolio, March 1999
Nuveen Dow JonesSM Technology Sector Portfolio, March 1999
Nuveen Retail Sector Portfolio, March 1999

Prospectus Part A dated March 23, 1999

.Portfolios Seek Capital Appreciation
.Reinvestment Option
.Letter of Intent Available

The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any representation
to the contrary is a criminal offense.

SCT-03-99-P
<PAGE>

Nuveen Unit Trusts, Series 37
CUSIP Nos:
Dividend in cash Reinvested
Nuveen Dow JonesSM Energy Sector Portfolio,
March 1999 67065Y155 67065Y163
Nuveen Dow JonesSM Financial Services Sector
Portfolio, March 1999 67065Y171 67065Y189
Nuveen Dow JonesSM Pharmaceutical Sector
Portfolio, March 1999 67065Y197 67065Y205
Nuveen Dow JonesSM Technology Sector Portfolio,
March 1999 67065Y213 67065Y221
Nuveen Retail Sector Portfolio, March 1999 67066T239 67066T247

Overview

Nuveen Unit Trusts, Series 37 in-
cludes the separate unit investment
trusts listed above. Each Portfolio
seeks to provide capital appreciation
by investing in the securities of
companies in its industry sector.

The Portfolios are scheduled to ter-
minate in approximately five years.

Contents

2 Overview
3 NUVEEN DOW JONESSM ENERGY SECTOR
PORTFOLIO, MARCH 1999
3 Risk/Return Summary
5 Schedule of Investments
6 Securities Descriptions
8 NUVEEN DOW JONESSM FINANCIAL
SERVICES SECTOR PORTFOLIO, MARCH 1999
8 Risk/Return Summary
10 Schedule of Investments
11 Securities Descriptions
13 NUVEEN DOW JONESSM PHARMACEUTICAL
SECTOR PORTFOLIO, MARCH 1999
13 Risk/Return Summary
15 Schedule of Investments
16 Securities Descriptions
18 NUVEEN DOW JONESSM TECHNOLOGY
SECTOR PORTFOLIO, MARCH 1999
18 Risk/Return Summary
20 Schedule of Investments
21 Securities Descriptions
23 NUVEEN RETAIL SECTOR PORTFOLIO,
MARCH 1999
23 Risk/Return Summary
25 Schedule of Investments
26 Securities Descriptions
28 How to Buy and Sell Units
28 Investing in the Portfolios
28 Sales or Redemptions
28 Risk Factors
30 Distributions
30 Income Distributions
30 Capital Distributions
30 General Information
30 Termination
30 The Sponsor
31 Portfolio Selection
31 Dealer Concessions
31 Optional Features
31 Letter of Intent
31 Reinvestment
31 Nuveen Mutual Funds
32 Notes to Portfolios
33 Statement of Condition
34 Report of Independent Public Accountants
For the Table of Contents of Part
B, see Part B of the Prospectus.
- ---------
Units are not deposits or obligations of, or guaranteed by any bank. Units are
not FDIC insured and involve investment risk, including the possible loss of
principal.

"Dow Jones Industrial AverageSM", The Dow 5SM, The Dow 10SM, Dow JonesSM, Dow
Jones Global IndexesSM and "DJIASM" are service marks of Dow Jones & Company,
Inc. ("Dow Jones") and have been licensed for use for certain purposes by John
Nuveen & Co. Incorporated ("Nuveen" or the "Sponsor") on behalf of certain
Portfolios. The Portfolios are not endorsed, sold or promoted by Dow Jones,
and Dow Jones makes no representation regarding the advisability of investing
in the Portfolios.

---
2
<PAGE>

Nuveen Dow JonesSM Energy Sector Portfolio, March 1999

Risk/Return Summary

Investment Objective

The Portfolio seeks to provide capital appreciation.

Investment Strategy

The Portfolio consists of the stocks of energy companies. The Portfolio is di-
versified across many energy sectors including integrated oil, oil field serv-
ices and equipment, oil and gas exploration and production, oil and gas drill-
ing, oil refining and marketing and natural gas.

The stocks are expected to remain in the Portfolio until termination.

Security Selection

To create the Portfolio, the Sponsor follows these steps:

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

. determines weighting of each subgroup within the Portfolio;

. selects the largest capitalization stocks within each subgroup and weights
them appropriately;

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

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

As of the Initial Date of Deposit, the stocks in the Portfolio are approxi-
mately equally dollar weighted.

Sector Description

Oil and natural gas are leading sources of energy. Analysts believe that over
the next 20 years, world oil demand will potentially rise with most growth
coming from Asia. The Sponsor believes that a number of recent developments,
including the following, have combined to sustain demand and promote growth in
these industries:

. Technology has lowered costs and improved efficiency in finding and develop-
ing oil and gas reserves.

. Production costs outside the United States have declined, making projects
more economically feasible and increasing drilling activity.

. Increasing Asian and Eastern European demand for natural gas may fuel that
segment's continued positive growth; and

. Offshore drilling was, at one time, five times as costly as onshore drill-
ing, but improved accessibility and technological advances have reduced that
gap. Analysts forecast continued long-term growth for the major offshore
drilling areas.

The Sponsor believes that the energy companies are well-positioned to take ad-
vantage of the world's increasing demand for energy.

Primary Risks

You can lose money by investing in the Portfolio. In addition, the Portfolio
may not perform as well as you hope. These things can happen for various rea-
sons, including:

. Stock prices can be volatile.

. Share prices or dividend rates on the stocks may decline during the life of
the Portfolio.

. The Portfolio is not actively managed and may continue to purchase or hold a
stock included in the Portfolio even though the stock's outlook or its mar-
ket value or yield may have changed.

. The Portfolio is concentrated in the energy industry. Adverse developments
in this industry may affect the value of your Units. Companies involved in
the energy industry must contend with price and supply fluctuations of un-
predictable energy fuels, fluctuating consumer demand, international poli-
tics, regulation, taxes, energy conservation and environmental concerns.

. Certain of the securities included in the Portfolio may be foreign securi-
ties or American Depositary Receipts that evidence ownership of underlying
foreign securities. Foreign securities present risks beyond those of U.S.
issuers.

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3
<PAGE>

Investor Suitability

The Portfolio may be suitable for you if:

. You are seeking to own energy stocks in one convenient package;

. You want capital appreciation potential;

. The Portfolio represents only a portion of your overall investment portfo-
lio; and

. The Portfolio is part of a longer term investment strategy.

The Portfolio is not appropriate for you if:

. You are unwilling to take the risks involved with owning a concentrated eq-
uity investment; or

. You are seeking preservation of capital or high current income.

Fees and Expenses

This table shows the fees and expenses you may pay, directly or indirectly,
when you invest in the Portfolio.

Estimated Annual Operating Expenses

<TABLE>
<CAPTION>
Amount per
$1,000
Invested
(as of
Initial Date
Amount per Unit of Deposit)
--------------- ------------
<S> <C> <C>
Trustee's Fee...................................... $0.00950 $ 0.95
Sponsor's Supervisory Fee.......................... $0.00350 $ 0.35
Bookkeeping and Administrative Fees................ $0.00250 $ 0.25
Evaluator's Fees................................... $0.00300 $ 0.30
Other Operating Expenses(1)........................ $0.00750 $ 0.75
-------- ------
Total.............................................. $0.02600 $ 2.60

Maximum Organization Costs(2)...................... $ 0.022 $2.20

Investor Fees
(As of the Initial Date of Deposit)
Maximum Initial Sales Charge....................... 1.00% $10.00
Maximum Deferred Sales Charge...................... 3.50% $35.00
-------- ------
Total Maximum Sales Charge......................... 4.50% $45.00
</TABLE>
- ---------
(1) Other Operating Expenses include annual licensing fees paid to cover a li-
cense to use service marks, trademarks and trade names of Dow Jones.

(2) Organization costs are deducted from Portfolio assets at the earlier of
the close of the initial offering period or six months after the Initial
Date of Deposit.

You will pay both an upfront and a deferred sales charge. The upfront sales
charge equals the difference between 4.5% of the Public Offering Price and any
remaining deferred sales charges. The deferred sales charges are $0.35 per
Unit and are deducted monthly in installments of $0.07 per Unit on the last
business day of the month from October 29, 1999 through February 29, 2000.

The maximum per Unit sales charges are reduced as follows:

<TABLE>
<CAPTION>
Total
Upfront Deferred Maximum
Sales Sales Sales
Number of Units(1) Charge(2) Charge Charge
-------------------------------------------------- --------- -------- -------
<S> <C> <C> <C>
Less than 5,000................................... 1.00% $0.35 4.50%
5,000 to 9,999.................................... 0.75% $0.35 4.25%
10,000 to 24,999.................................. 0.50% $0.35 4.00%
25,000 to 49,999.................................. 0.00% $0.35 3.50%
50,000 to 99,999.................................. 0.00% $0.35(3) 2.50%
100,000 or more................................... 0.00% $0.35(3) 1.50%
</TABLE>
- ---------
(1) Sales charge reductions are computed both on a dollar basis and on the ba-
sis of the number of Units purchased, using the equivalent of 5,000 Units
to $50,000, 10,000 Units to $100,000 etc., and will be applied on that ba-
sis which is more favorable to you.
(2) The Upfront Sales Charge is based on the Unit price on the Initial Date of
Deposit. The percentage amount of the Upfront charge will vary as the Unit
price varies and after deferred charges begin.
(3) All Units are subject to the same deferred sales charges. When the de-
ferred charges exceed the maximum sales charge, you will be given extra
Units at the time of purchase.

The maximum sales charge on reinvested dividends is $0.35 per Unit.

As described in "Public Offering Price" in Part B of the Prospectus, certain
classes of investors are also entitled to reduced sales charges. See "Public
Offering Price" in Part B of the Prospectus for secondary market sales
charges.

Example

This example may help you compare the cost of investing in the Portfolio to
the cost of investing in other funds.

The example assumes that you invest $10,000 in the Portfolio for the periods
indicated and then either redeem or do not redeem your Units at the end of
those periods. The example also assumes a 5% return on your investment each
year and that the Portfolio's operating expenses stay the same. Although your
actual costs may be higher or lower, based on these assumptions your costs
would be:

<TABLE>
<S> <C> <C>
1 Year 3 Years Life of Portfolio
------- ------- -----------------
$497.68 $550.90 $609.28
</TABLE>

See "Trust Operating Expenses" in Part B of the Prospectus for additional in-
formation regarding expenses.

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4
<PAGE>

- --------------------------------------------------------------------------------
Schedule of Investments
(at the Initial Date of Deposit, March 23, 1999)

Nuveen Dow JonesSM Energy Sector Portfolio, March 1999

Dow JonesSM Major Integrated 35.95%
78 Atlantic Richfield Company ARC 4.00% 64.0000 4,992 4.45%
50 BP Amoco p.l.c., ADR BPA 4.00% 99.8750 4,994 2.40%
56 Chevron Corporation CHV 3.97% 88.4375 4,953 2.76%
73 Elf Aquitaine, ADR ELF 4.01% 68.5000 5,001 1.55%
79 ENI SpA, ADR E 4.00% 63.1875 4,992 1.68%
68 Exxon Corporation XON 4.03% 73.8750 5,024 2.22%
92 Royal Dutch Petroleum Company (4) RD 3.99% 54.0625 4,974 1.97%
88 Texaco Inc. TX 3.96% 56.1250 4,939 3.21%
84 TOTAL SA, ADR TOT 3.99% 59.3125 4,982 1.56%

Dow JonesSM Other Oilfield
Equipment 12.02%
217 Baker Hughes Incorporated BHI 4.00% 23.0000 4,991 2.00%
131 Halliburton Company HAL 4.01% 38.2500 5,011 1.31%
85 Schlumberger Limited SLB 4.01% 58.8125 4,999 1.28%

Dow JonesSM Pipelines 11.94%
143 The Coastal Corporation CGP 3.96% 34.5625 4,942 0.72%
74 Enron Corp. ENE 4.01% 67.6875 5,009 1.48%
128 The Williams Companies, Inc. WMB 3.97% 38.6875 4,952 1.55%

Dow JonesSM Secondary 27.97%
102 Amerada Hess Corporation AHC 3.98% 48.6250 4,960 1.23%
140 Anadarko Petroleum Corporation APC 3.98% 35.4375 4,961 0.56%
118 Ashland Inc. ASH 4.01% 42.3750 5,000 2.60%
125 Burlington Resources, Inc. BR 3.99% 39.8750 4,984 1.38%
291 Occidental Petroleum Corporation OXY 4.02% 17.2500 5,020 5.80%
216 Tosco Corporation TOS 3.99% 23.0625 4,982 1.04%
113 Vastar Resources, Inc. VRI 4.00% 44.1250 4,986 0.68%
----- ----- --------
3,202 100% $124,767
===== ===== ========
</TABLE>
- ---------
See "Notes to Portfolios."

Please note that if this prospectus is used as a preliminary prospectus for fu-
ture Nuveen Defined Portfolios, the portfolio will contain different stocks
from those described above.

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5
<PAGE>

Securities Descriptions
The stocks of the following companies are included in the Portfolio:

Amerada Hess Corporation (AHC)
Amerada Hess Corporation and its subsidiaries explore for, produce, purchase,
transport, and sell crude oil, natural gas and petroleum products. The
Company's exploration and production activities are located primarily in the
United States, United Kingdom, Norway, and Gabon.

Anadarko Petroleum Corporation (APC)
Anadarko Petroleum Corporation is engaged in the exploration, development, pro-
duction, and marketing of natural gas, crude oil, condensate and natural gas
liquids. The Company explores for oil in Kansas, Oklahoma, and Texas, as well
as offshore in the Gulf of Mexico and in Alaska.

Ashland Inc. (ASH)
Ashland Inc. specializes in automotive and chemical products and highway con-
struction materials. The Company is also involved in coal and oil production.
Ashland's consumer products include Valvoline motor oil and Zerex antifreeze.

Atlantic Richfield Company (ARC)
Atlantic Richfield Company and its affiliates explore, produce, and market
crude oil, natural gas, and natural gas liquids. The Company also refines, mar-
kets, and transports petroleum products. Atlantic Richfield owns interests in
chemicals and coal, and has created businesses ancillary to its operations, in-
cluding retail convenience stores, electronic payment systems, and others.

BP Amoco p.l.c., ADR (BPA)
BP Amoco p.l.c., headquartered in the United Kingdom and formed from the merger
of British Petroleum and Amoco, is the world's third largest integrated oil
company. The Company explores for and produces oil in about 20 countries and is
also a major chemical manufacturer.

Baker Hughes Incorporated (BHI)
Baker Hughes Incorporated provides downhole tool technologies, products, and
services for the worldwide oilfield service industry. The Company also produces
and markets drilling fluids for oil and gas well drilling.

Burlington Resources, Inc. (BR)
Burlington Resources, Inc., through its subsidiaries, is engaged in the explo-
ration, development, production and marketing of oil and gas. The Company's op-
erations are conducted by five divisions located in New Mexico and Texas.

Chevron Corporation (CHV)
Chevron Corporation explores for, develops, and produces crude oil and natural
gas. The Company also refines crude oil into finished petroleum products, as
well as markets and transports crude oil, natural gas, and petroleum products.
Chevron operates in the U.S. and approximately 90 countries.

The Coastal Corporation (CGP)
The Coastal Corporation is a diversified energy company involved in the explo-
ration, production, refining, and marketing of petroleum and natural gas prod-
ucts around the world. The Company's operations include 1,700 retail gasoline
outlets and a major natural gas pipeline.

Diamond Offshore Drilling, Inc. (DO)
Diamond Offshore Drilling, Inc. drills offshore oil and gas wells throughout
the world. The Company, which boasts the world's largest fleet of
semisubmersible rigs, contracts its services and equipment to major oil compa-
nies, both publicly-owned and government-owned.

ENI SpA, ADR (E)
EnI SpA, headquartered in Italy, is a major integrated oil and gas company en-
gaged in all aspects of the petroleum business. The Company also provides
oilfield devices, contracting and engineering services.

Elf Aquitaine, ADR (ELF)
Elf Aquitaine, headquartered in France, explores for, refines and markets pe-
troleum. The Company operates worldwide, manufacturing specialty, basic and
fine chemicals, polymers, plastic additives and metal plating.

Enron Corp. (ENE)
Enron Corp. is the number one buyer and seller of natural gas in the United
States. The Company also develops and operates energy production, pipeline, and
water facilities throughout the world.

Exxon Corporation (XON)
Exxon Corporation is the world's second largest producer of oil and gas. With
operations in more than 100 countries, the Company is involved in the explora-
tion, production, transportation and marketing of crude oil, natural gas, pet-
rochemicals and other petroleum products and minerals.

Halliburton Company (HAL)
Halliburton Company is a diversified energy services, engineering, maintenance,
and construction company. The Company provides a broad range of energy services
and products, industrial and marine engineering, and construction services.

Noble Drilling Corporation (NE)
Noble Drilling Corporation provides diversified services for the international
oil and gas industry. In addition to contract deepwater drilling operations,
the Company offers project design, engineering, and management services.

Occidental Petroleum Corporation (OXY)
Occidental Petroleum Corporation explores for, develops, produces, and markets
crude oil and natural gas. The Company also manufactures and markets a variety
of basic chemicals, polymers and plastics, specialty chemicals and petrochemi-
cals. Occidental Pe-
-6--
<PAGE>

troleum operates through Occidental Oil and Gas Corporation and Occidental
Chemical Corporation.

Royal Dutch Petroleum Company (RD)
Royal Dutch Petroleum Company, headquartered in the Netherlands, owns 60% of
the Royal Dutch/Shell Group of companies, which are involved in all phases of
the petroleum industry from exploration to final processing and delivery.

Schlumberger Limited (SLB)
Schlumberger Limited is a diversified company that provides oil and gas explo-
ration and production services; manufactures energy, water and communications
measurement instruments; and provides communications and information technology
solutions.

Texaco Inc. (TX)
Texaco Inc. and its subsidiaries explore for, produce, transport, refine and
market crude oil, natural gas and petroleum products, including petrochemicals.
The Company owns, leases or has interests in extensive production, manufactur-
ing, marketing, transportation and other facilities throughout the world.

Tosco Corporation (TOS)
Tosco Corporation is the leading independent oil refiner and petroleum marketer
in the United States, operating primarily on the east and west coasts. The Com-
pany also has related commercial activities, including ownership of the Circle
K convenience store chain.

TOTAL SA, ADR (TOT)
TOTAL SA, headquartered in France, is a major integrated oil and gas company.
With operations in more than 100 countries, the Company engages in all aspects
of the petroleum industry, from exploration and production to marketing and
shipping. TOTAL also maintains interests in other energy-related industries and
produces specialty chemical products for industrial and consumer use.

Transocean Offshore Inc. (RIG)
Transocean Offshore Inc. provides deepwater and harsh environment contract
drilling services for oil and gas wells. The Company currently owns, has inter-
ests in, or operates mobile offshore drilling rigs, including semisubmersibles,
drillships, and jackup rigs. Transocean also provides turnkey drilling, coiled
tubing drilling, and well engineering and planning.

Vastar Resources, Inc. (VRI)
Vastar Resources, Inc. explores for, produces, and markets oil and natural gas.
The Company's principal producing areas are located in the southern and western
United States.

The Williams Companies, Inc. (WMB)
The Williams Companies, Inc. transports natural gas and provides a full range
of energy and communications services. The Company provides international video
satellite and fiber-optic transmission; multi-point video- and audio-
conferencing; satellite business applications; interactive technical training;
on-demand distance learning; and Internet, wireless, and telemarketing servic-
es.

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7
<PAGE>

Nuveen Dow JonesSM Financial Services Sector Portfolio, March 1999

Risk/Return Summary

Investment Objective

The Portfolio seeks to provide capital appreciation.

Investment Strategy

The Portfolio consists of the stocks of financial services companies. The
Portfolio is diversified across many financial institutions including banks,
thrifts, insurance companies, real estate firms and asset management compa-
nies.

The stocks are expected to remain in the Portfolio until termination.

Security Selection

To create the Portfolio, the Sponsor follows these steps:

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

. determines weighting of each subgroup within the Portfolio;

. selects the largest capitalization stocks within each subgroup and weights
them appropriately;

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

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

Sector Description

Financial institutions continue to establish themselves as comprehensive serv-
ice providers. The Sponsor believes that a number of developments, including
the following, have combined to fuel growth in this sector:

. Global Markets--As brokers seek new clients and issuers pursue attractive
rates in foreign markets, the industry becomes increasingly global. Addi-
tionally, many investors are looking abroad for greater returns and reduced
risk through globally diversified portfolios.

. Baby Boomers--Because baby boomers have historically undersaved, the Sponsor
believes that a prolonged period of large-scale investing could occur as
this group advances in age. Analysts believe that inflows in recent years
into equity mutual funds are one signal that these individuals are taking
responsibility for their retirement.

Primary Risks

You can lose money by investing in the Portfolio. In addition, the Portfolio
may not perform as well as you hope. These things can happen for various rea-
sons, including:

. Stock prices can be volatile.

. Share prices or dividend rates on the stocks may decline during the life of
the Portfolio.

. The Portfolio is not actively managed and may continue to purchase or hold a
stock included in the Portfolio even though the stock's outlook or its mar-
ket value or yield may have changed.

. The Portfolio is concentrated in the financial services industry. Adverse
developments in this industry may affect the value of your Units. In gener-
al, companies involved in the financial services industry must contend with
volatile interest rates, the adverse effects of economic recession, the cost
of new technology, domestic and global competition, regulation and tax law
changes. Insurance companies must also contend with the costs associated
with weather catastrophes and other disasters and mortality rates.

Investor Suitability

The Portfolio may be suitable for you if:

. You are seeking to own financial services stocks in one convenient package;

. You want capital appreciation potential;

. The Portfolio represents only a portion of your overall investment portfo-
lio; and

. The Portfolio is part of a longer term investment strategy.

---
8
<PAGE>

The Portfolio is not appropriate for you if:

. You are unwilling to take the risks involved with owning a concentrated eq-
uity investment; or

. You are seeking preservation of capital or high current income.

Fees and Expenses

This table shows the fees and expenses you may pay, directly or indirectly,
when you invest in the Portfolio.

Estimated Annual Operating Expenses

Maximum Organization Costs(2)...................... $ 0.022 $ 2.20

(2) Organization costs are deducted from Portfolio assets at the earlier of
the close of the initial offering period or six months after the Initial
Date of Deposit.

The maximum per Unit sales charges are reduced as follows:

The maximum sales charge on reinvested dividends is $0.35 per Unit.

Example

This example may help you compare the cost of investing in the Portfolio to
the cost of investing in other funds.

<TABLE>
<CAPTION>
Life of
1 Year 3 Years Portfolio
------- ------- ---------
<S> <C> <C>
$497.68 $550.90 $609.28
</TABLE>

See "Trust Operating Expenses" in Part B of the Prospectus for additional in-
formation regarding expenses.

---
9
<PAGE>

- --------------------------------------------------------------------------------
Schedule of Investments
(at the Initial Date of Deposit, March 23, 1999)

Nuveen Dow JonesSM Financial Services Sector Portfolio, March 1999

<TABLE>
<CAPTION>
Percentage
of
Aggregate Cost of Current
Number of Ticker Offering Market Value Securities to Dividend
Shares Name of Issuer of Securities(1) Symbol Price per Share Portfolio(2) Yield(3)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dow JonesSM Diversified Financial 19.99%
41 American Express Company AXP 4.03% $122.8750 $ 5,038 0.73%
79 Citigroup Inc. C 4.02% 63.6250 5,026 1.13%
74 Fannie Mae FNM 4.01% 67.6875 5,009 1.60%
89 ING Groep N.V., ADR ING 3.99% 56.0000 4,984 2.08%
51 Morgan Stanley Dean Witter & Co. MWD 3.94% 96.6250 4,928 0.99%

Dow JonesSM Insurance-Property & Casualty 4.00%
130 The Allstate Corporation ALL 4.00% 38.4375 4,997 1.56%

Dow JonesSM Money Center 27.93%
116 Abbey National plc, ADR ABYNY 3.99% 43.0000 4,988 3.41%
235 ABN AMRO Holding N.V., ADR AAN 4.03% 21.4375 5,038 2.49%
91 BANK ONE CORPORATION ONE 3.99% 54.7500 4,982 3.07%
69 BankAmerica Corporation BAC 4.00% 72.5000 5,003 2.48%
43 Barclays PLC, ADR BCS 3.97% 115.5000 4,967 3.10%
61 The Chase Manhattan Corporation CMB 4.00% 81.9375 4,998 2.00%
36 National Westminster Bank Plc, ADR NW 3.95% 137.0000 4,932 3.41%
Dow JonesSM Real Estate 8.00%
195 Equity Office Properties Trust EOP 4.00% 25.6250 4,997 5.78%
197 Simon Property Group, Inc. SPG 4.00% 25.3750 4,999 7.96%

Dow JonesSM Securities Broker 8.02%
56 The Charles Schwab Corporation SCH 3.99% 89.0000 4,984 0.13%
56 Merrill Lynch & Co., Inc. MER 4.03% 89.9375 5,037 1.07%
Dow JonesSM US Regional 32.06%
131 The Bank of New York Company, Inc. BK 4.00% 38.1875 5,003 1.47%
68 Fifth Third Bancorp FITB 4.03% 74.0625 5,036 1.08%
93 First Union Corporation FTU 4.02% 54.0625 5,028 3.48%
126 Fleet Financial Group, Inc. FLT 4.00% 39.6875 5,001 2.72%
72 National City Corporation NCC 3.98% 69.0625 4,973 3.01%
76 SunTrust Banks, Inc. STI 4.03% 66.2500 5,035 2.08%
140 U.S. Bancorp USB 3.98% 35.5000 4,970 2.20%
129 Wells Fargo & Company WFC 4.02% 38.9375 5,023 1.90%
----- ------ --------
2,454 100% $124,976
===== ====== ========
</TABLE>
- ---------
See "Notes to Portfolios."

Please note that if this prospectus is used as a preliminary prospectus for fu-
ture Nuveen Defined Portfolios, the portfolio will contain different stocks
from those described above.

---
10
<PAGE>

Securities Descriptions

The stocks of the following companies are included in the Portfolio:

Abbey National plc, ADR (ABYNY)
Abbey National plc, headquartered in the United Kingdom, offers retail banking
and mortgage finance, consumer credit services, international banking, and in-
surance. Abbey National has approximately 800 branches throughout the UK.

ABN AMRO Holding N.V., ADR (AAN)
ABN AMRO Holding N.V., headquartered in the Netherlands, is a leading interna-
tional bank group with nearly $500 billion in assets. The Company offers a va-
riety of financial services, including payment, lending, corporate finance,
leasing, treasury, private banking, trade and commodity finance, insurance and
investment services.

The Allstate Corporation (ALL)
The Allstate Corporation is a major life and property/casualty insurer in North
America. The Company's core home and automobile insurance lines account for ap-
proximately 75% of its sales.

American Express Company (AXP)
American Express Company provides travel related services, financial advisory
services, and international banking services throughout the world.

The Bank of New York Company, Inc. (BK)
The Bank of New York Company, Inc. provides a complete range of banking and
other services to corporations and individuals worldwide. The Company's serv-
ices include retail banking, processing of securities, investment management
and trust services.

BANK ONE CORPORATION (ONE)
BANK ONE CORPORATION, a leading bank holding company, operates in 33 states and
provides a full range of consumer and commercial banking related financial
services.

BankAmerica Corporation (BAC)
BankAmerica Corporation is the holding company for Bank of America and
NationsBank. The Company, which operates in 22 states and the District of Co-
lumbia, provides retail banking services, asset management, financial products,
corporate finance, specialized finance, capital markets, and financial servic-
es.

Barclays PLC, ADR (BCS)
Barclays PLC, headquartered in the United Kingdom, offers commercial and in-
vestment banking, insurance, financial and related services. The Company's sub-
sidiary, Barclays Bank plc, operates over 2,500 branches in the United Kingdom
and over 1,000 branches in 76 countries.

The Charles Schwab Company (SCH)
The Charles Schwab Company is a discount brokerage firm and one of the top dis-
tributors of mutual funds. The Company dominates online trading, has begun an
international expansion, and is moving to offer more investment advisory and
asset allocation services.

The Chase Manhattan Corporation (CMB)
The Chase Manhattan Corporation is a bank holding company which conducts domes-
tic and international financial services through various bank and non-bank sub-
sidiaries. The Company provides corporate finance, wholesale banking, and in-
vestment services, as well as underwriting, distribution, risk management prod-
ucts, and private banking.

Citigroup Inc. (C)
Citigroup Inc. is a diversified financial services holding company that pro-
vides investment services, including asset management, consumer finance servic-
es, property and casualty insurance services, and life insurance services. Sub-
sidiaries include Salomon Smith Barney Holdings Inc., Commercial Credit Compa-
ny, Travelers Property & Casualty Corp., and others.

Equity Office Properties Trust (EOP)
Equity Office Properties Trust is a fully integrated, self-administrated and
self-managed real estate investment trust engaged in acquiring, owning, manag-
ing, leasing, and renovating office properties and parking facilities.

Fannie Mae (FNM)
Fannie Mae, formerly the Federal National Mortgage Association, buys and holds
mortgages and packages guaranteed mortgage-backed securities to facilitate
housing ownership for low- to middle-income Americans.

Fifth Third Bancorp (FITB)
Fifth Third Bancorp is a multibank holding company that operates nearly 500
Fifth Third Bank locations in Arizona, Florida, Indiana, Kentucky, and Ohio.
The Company offers retail and business banking as well as trust, retirement,
and investment products.

First Union Corporation (FTU)
First Union Corporation is a bank holding company for First Union National Bank
and First Union Mortgage Corporation. The Company provides a wide range of com-
mercial and retail banking and trust services.

Fleet Financial Group, Inc. (FLT)
Fleet Financial Group, Inc. is a diversified financial services company. The
Company's lines of business include investment management, commercial and busi-
ness banking, mortgage banking, corporate finance, government banking, asset-
based lending, equipment leasing and student loan processing. Fleet branches
are located primarily in the northeastern U.S.

ING Groep N.V., ADR (ING)
ING Groep N.V., headquartered in the Netherlands, offers a wide range of finan-
cial services to individuals, corporations and other institutions. The
Company's services include commercial, savings and investment banking as well
as life, property and commercial insurance.

Merrill Lynch & Co., Inc. (MER)
Merrill Lynch & Co., Inc. is a global financial management and advisory company
which serves the needs of both individuals and institutional clients with a

---
11
<PAGE>

diverse range of financial services, including personal financial planning,
trading and brokering, banking and lending, insurance and others.

Morgan Stanley Dean Witter & Co. (MWD)
Morgan Stanley Dean Witter & Co. is a diversified financial services company
providing a full range of consumer and institutional services worldwide includ-
ing retail brokerage, securing underwriting, corporate finance, investment re-
search, asset management and consumer lending. The Company is currently the
third largest retail brokerage firm and its "Discover" card unit is a leading
issuer of consumer credit.

National City Corporation (NCC)
National City Corporation is a multi-bank holding company which offers a full
range of financial services, including investment banking, brokerage, and tra-
ditional banking services to individuals and businesses. National City has
branch offices in Ohio, Pennsylvania, Michigan, Indiana, Kentucky, and Illi-
nois.

National Westminster Bank Plc, ADR (NW)
National Westminster Bank PLC, headquartered in the United Kingdom, offers a
wide variety of consumer and commercial banking services including mortgage
banking, retail brokerage, leasing and asset management.

Simon Property Group, Inc. (SPG)
Simon Property Group, Inc. is one of the largest real estate investment trusts
in North America. The Company owns, develops, and manages over 240 properties,
primarily malls and shopping centers in 35 states and Canada.

SunTrust Banks, Inc. (STI)
SunTrust Banks, Inc. is a regional bank holding company providing personal,
corporate, and institutional financial services. The Company also provides on-
line banking through its "SunTrust Online" subsidiary and securities underwrit-
ing and brokerage services through SunTrust Equitable Securities.

U.S. Bancorp (USB)
U.S. Bancorp is a bank holding company with subsidiary banks that provide com-
prehensive banking, trust investment and payment systems to customers, busi-
nesses and institutions.

Wells Fargo & Company (WFC)
Wells Fargo & Company is a bank holding company that provides a broad array of
financial products and service to customers in the western United States, as
well as commercial, corporate, real estate, and small business customers
throughout the U.S. The Company's recent merger with Norwest has given it the
largest mortgage banking operation in the U.S. and a joint venture with HSBC
Holdings Plc of the United Kingdom will provide access to international mar-
kets.

---
12
<PAGE>

Nuveen Dow JonesSM Pharmaceutical Sector Portfolio, March 1999

Risk/Return Summary

Investment Objective

The Portfolio seeks to provide capital appreciation.

Investment Strategy

The Portfolio consists of the stocks of pharmaceutical companies. The Portfo-
lio is diversified across many industries including biotechnology, generics,
proprietary medicines and medical devices and supplies.

The stocks are expected to remain in the Portfolio until termination.

Security Selection

To create the Portfolio, the Sponsor follows these steps:

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

. determines weighting of each subgroup within the Portfolio;

. selects the largest capitalization stocks within each subgroup and weights
them appropriately;

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

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

As of the Initial Date of Deposit, the stocks in the Portfolio are approxi-
mately equally dollar weighted.

Sector Description

Today's health care environment is ever changing--from managed care to major
medical breakthroughs. The Sponsor believes that a number of developments, in-
cluding the following, have combined to fuel growth in this sector:

. Aging Population--As baby-boomers advance in years, the global over-65 popu-
lation is predicted to rise through the year 2025. This aging population
pressures the industry to continue developing new drugs to improve and pro-
long life.

. Managed Care--Managed care is a way of linking health care coverage with
health care providers. Enrollees who receive services through managed care
providers such as health maintenance organizations (HMOs), receive their
health care from a group of approved doctors and hospitals. Managed care's
share of the retail pharmaceutical market was less than 30% at the start of
the decade. The Sponsor believes that the rapid growth of managed care's
presence should continue to transform the market place.

. Legislation--Key drivers of industry growth include recent legislation that
expedites the new drug review process and allows the promotion of drugs for
unapproved uses under certain circumstances, and the FDA's relaxed rules on
direct-to-consumer advertising of prescription drugs.

Primary Risks

You can lose money by investing in the Portfolio. In addition, the Portfolio
may not perform as well as you hope. These things can happen for various rea-
sons, including:

. Stock prices can be volatile.

. Share prices or dividend rates on the stocks may decline during the life of
the Portfolio.

. The Portfolio is not actively managed and may continue to purchase or hold a
stock included in the Portfolio even though the stock's outlook or its mar-
ket value or yield may have changed.

. The Portfolio is concentrated in the pharmaceutical industry. Adverse devel-
opments in this industry may affect the value of your Units. Companies in-
volved in the pharmaceutical industry must contend with regulation, competi-
tion, termination of patent protections and the risk that technological ad-
vances will render their products obsolete.

Investor Suitability

The Portfolio may be suitable for you if:

. You are seeking to own pharmaceutical stocks in one convenient package;

. You want capital appreciation potential;

---
13
<PAGE>

. The Portfolio represents only a portion of your overall investment portfo-
lio; and

. The Portfolio is part of a longer term investment strategy.

The Portfolio is not appropriate for you if:

. You are unwilling to take the risks involved with owning a concentrated eq-
uity investment; or

. You are seeking preservation of capital or high current income.

Fees and Expenses

This table shows the fees and expenses you may pay, directly or indirectly,
when you invest in the Portfolio.

Estimated Annual Operating Expenses

Maximum Organization Costs(2)...................... $ 0.022 $ 2.20

(2) Organization costs are deducted from Portfolio assets at the earlier of
the close of the initial offering period or six months after the Initial
Date of Deposit.

The maximum per Unit sales charges are reduced as follows:

The maximum sales charge on reinvested dividends is $0.35 per Unit.

Example

This example may help you compare the cost of investing in the Portfolio to
the cost of investing in other funds.

<TABLE>
<CAPTION>
Life of
1 Year 3 Years Portfolio
------- ------- ---------
<S> <C> <C>
$497.68 $550.90 $609.28
</TABLE>

See "Trust Operating Expenses" in Part B of the Prospectus for additional in-
formation regarding expenses.

---
14
<PAGE>

- --------------------------------------------------------------------------------
Schedule of Investments
(at the Initial Date of Deposit, March 23, 1999)

Nuveen Dow JonesSM Pharmaceutical Sector Portfolio, March 1999

Dow JonesSM Drug Companies 60.18%
75 American Home Products Corporation AHP 4.01% 66.6250 4,997 1.35%
81 Bristol-Myers Squibb Company BMY 4.01% 61.6250 4,992 1.40%
59 Eli Lilly and Company LLY 4.03% 85.1875 5,026 1.08%
82 Glaxo Wellcome plc, ADR GLX 4.04% 61.3750 5,033 2.22%
54 Johnson & Johnson JNJ 3.98% 91.8125 4,958 1.09%
58 Merck & Co., Inc. MRK 4.02% 86.3750 5,010 1.25%
60 Novartis AG, ADR NVTSY 4.00% 83.0000 4,980 0.86%
35 Pfizer Inc. PFE 4.02% 143.0000 5,005 0.62%
86 Pharmacia & Upjohn, Inc. PNU 4.01% 58.1250 4,999 1.86%
107 Rhone-Poulenc S.A., ADR RP 4.01% 46.7500 5,002 1.02%
41 Roche Holding Ltd, ADR ROHHY 4.05% 123.0000 5,043 0.39%
86 Schering-Plough Corporation SGP 3.99% 57.8750 4,977 0.76%
74 SmithKline Beecham plc, ADR SBH 4.03% 67.8125 5,018 1.76%
74 Warner-Lambert Company WLA 3.97% 66.9375 4,953 1.20%
114 Zeneca Group PLC, ADR ZEN 4.01% 43.8750 5,002 1.13%

Dow JonesSM Medical Devices 7.98%
82 Guidant Corporation GDT 4.01% 60.9375 4,997 N/A
72 Medtronic, Inc. MDT 3.97% 68.6250 4,941 0.38%

Dow JonesSM Medical Supplies 15.82%
102 Abbott Laboratories ABT 3.97% 48.5625 4,953 1.40%
74 Baxter International Inc. BAX 3.98% 67.0000 4,958 1.74%
136 Becton, Dickinson and Company BDX 3.90% 35.7500 4,862 0.95%
125 Boston Scientific Corporation BSX 3.97% 39.5625 4,945 N/A
----- ------ --------
1,940 100% $124,609
===== ====== ========
</TABLE>
- ---------
See "Notes to Portfolios."

Please note that if this prospectus is used as a preliminary prospectus for fu-
ture Nuveen Defined Portfolios, the portfolio will contain different stocks
from those described above.

---
15
<PAGE>

Securities Descriptions

The stocks of the following companies are included in the Portfolio:

Abbott Laboratories (ABT)
Abbott Laboratories is a pharmaceuticals company that also produces nutritional
supplements such as Similac and Ensure. The Company also makes hospital and
laboratory products, including medical diagnostic and drug-delivery systems.

American Home Products Corporation (AHP)
American Home Products Corporation makes health care and agricultural products.
The Company's products include estrogen-replacement drug Premarin and consumer
products Advil and Robitussin.

Amgen Inc. (AMGN)
Amgen Inc. is a major biotechnology company involved in research and develop-
ment, manufacturing, and marketing of therapeutic products. The Company's key
products are genetically engineered versions of natural hormones that stimulate
production of blood components.

Baxter International Inc. (BAX)
Baxter International Inc. develops, distributes, and manufactures health-care
products, systems, and services. The Company's products are manufactured in 25
countries and sold worldwide.

Becton, Dickinson and Company (BDX)
Becton, Dickinson and Company manufactures and sells a variety of medical sup-
plies and diagnostic devices. The Company is the leading maker of syringes in
the U.S. and has operations in more than 40 countries.

Biogen, Inc. (BGEN)
Biogen, Inc. researches, manufactures, and markets biopharmaceuticals to treat
a variety of medical conditions. The Company's primary product is AVONEX, a
drug used to treat relapsing multiple sclerosis.

Boston Scientific Corporation (BSX)
Boston Scientific Corporation develops, manufactures, and markets minimally-
invasive medical devices. The Company's products assist in the diagnosis and
treatment of a variety of medical problems.

Bristol-Myers Squibb Company (BMY)
Bristol-Myers Squibb Company, a diversified worldwide health and personal care
company, manufactures and markets pharmaceuticals, consumer medicines, beauty
care products, nutritionals, and medical devices.

Eli Lilly and Company (LLY)
Eli Lilly and Company is a global research-based pharmaceutical corporation
that creates and delivers pharmaceutical-based health care solutions for neuro-
logical afflictions, endocrine diseases, cancer, cardiovascular diseases, in-
fectious diseases, and women's health problems.

Genentech, Inc. (GNE)
Genentech, Inc. is a biotechnology company which discovers, develops, manufac-
tures, and markets human pharmaceuticals for unmet medical needs. Genentech
currently manufactures and markets seven pharmaceutical products in the United
States for several serious medical conditions.

Genzyme Corporation (GENZ)
Genzyme Corporation researches gene therapy treatments for diseases and medical
conditions such as burns and cartilage damage. The Company also develops surgi-
cal and diagnostic products.

Glaxo Wellcome plc, ADR (GLX)
Glaxo Wellcome plc, headquartered in the United Kingdom, is one of the world's
top makers of prescription drugs. The Company researches, develops, manufac-
tures, and markets a variety of pharmaceuticals, including products for the
treatment of respiratory illnesses and hepatitis.

Guidant Corporation (GDT)
Guidant Corporation designs, develops, manufactures, and markets products used
in cardiac rhythm management, vascular intervention, and cardiac and vascular
surgery. The Company sells its products around the world.

Johnson & Johnson (JNJ)
Johnson & Johnson is one of the world's largest and most diversified makers of
health care products. The Company's products include consumer products such as
Tylenol and Motrin analgesics, professional products such as AcuVue contact
lenses, and pharmaceuticals such as Ortho-Novum oral contraceptives.

Medtronic, Inc. (MDT)
Medtronic, Inc. specializes in implantable and interventional cardiac and neu-
rological therapies. The Company's products are sold to hospitals and physi-
cians worldwide.

Merck & Co., Inc. (MRK)
Merck & Co., Inc. is a worldwide research-intensive health products company op-
erating through five divisions: human health, managed pharmaceutical care, man-
ufacturing, research, and vaccine. Merck's products include treatments for
osteoporosis and high blood pressure.

Novartis AG, ADR (NVTSY)
Novartis AG was created by the merger of Swiss pharmaceutical companies Sandoz
and Ciba-Geigy. The Company manufactures healthcare products for use in a broad
range of medical fields, as well as nutritional and agricultural products.
Novartis markets its products worldwide.

Pfizer Inc. (PFE)
Pfizer Inc. is a research-based, global health care company that develops,
manufactures, and sells products that improve the quality of life of people
around the world. The Company operates in three business segments: health care,
animal health, and consumer health care.

---
16
<PAGE>

Pharmacia & Upjohn, Inc. (PNU)
Pharmacia & Upjohn, Inc. is an international pharmaceutical and
biotechnological group of companies that manufactures and markets a wide as-
sortment of subscription and over-the-counter products, which are produced in
Europe and the United States and sold worldwide.

Rhone-Poulenc S.A., ADR (RP)
Rhone-Poulenc S.A., headquartered in France, manufactures chemicals, polymers,
fibers, pharmaceuticals, and agricultural chemicals. The Company has sales
throughout the world, with a concentration in France, the United States and
Canada.

Roche Holding Ltd, ADR (ROHHY)
Roche Holding Ltd, headquartered in Switzerland, develops and manufactures
pharmaceutical and chemical products. The Company distributes its products
throughout Europe, the United States, Asia and Latin America.

Schering-Plough Corporation (SGP)
Schering-Plough Corporation, through its subsidiaries, discovers, develops,
manufactures, and markets pharmaceutical and health care products worldwide.
The Company's top-selling product is Claritin antihistamine.

SmithKline Beecham plc, ADR (SBH)
SmithKline Beecham plc, headquartered in the United Kingdom, discovers, devel-
ops, manufactures, and markets pharmaceuticals, vaccines, over-the-counter med-
icines, and health-related consumer products, and provides healthcare services,
including disease management, clinical laboratory testing, and pharmaceutical
benefit management.

Warner-Lambert Company (WLA)
Warner-Lambert Company discovers, develops, manufactures, and markets pharma-
ceutical, consumer health care and confectionary products. The Company's Parke-
Davis and Goedecke pharmaceuticals divisions make analgesics, anesthetics, and
hemostatic agents as well as diabetes and cholesterol treatments.

Zeneca Group PLC, ADR (ZEN)
Zeneca Group PLC, headquartered in the United Kingdom, is a holding company
whose subsidiaries research, manufacture, and sell pharmaceutical and
agrochemical products, seeds, specialty chemicals, and other related products.
The Company distributes and sells its products internationally.

---
17
<PAGE>

Nuveen Dow JonesSM Technology Sector Portfolio, March 1999

Risk/Return Summary

Investment Objective

The Portfolio seeks to provide capital appreciation.

Investment Strategy

The Portfolio consists of the stocks of technology companies. The Portfolio is
diversified across many technology sectors including computers, computer
networking, software, semiconductors and communications.

The stocks are expected to remain in the Portfolio until termination.

Security Selection

To create the Portfolio, the Sponsor follows these steps:

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

. determines weighting of each subgroup within the Portfolio;

. selects the largest capitalization stocks within each subgroup and weights
them appropriately;

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

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

As of the Initial Date of Deposit, the stocks in the Portfolio are approxi-
mately equally dollar weighted.

Sector Description

The technological revolution continues to surge forward at speeds once incom-
prehensible. The Sponsor believes that a number of developments, including the
following, have combined to fuel growth in this sector:

. Internet Growth--The evolution and expansion of the Internet has generated
tremendous growth opportunities. Internet-driven worldwide revenue in 1996
was estimated at $19 billion; this spending should continue to grow as
Internet access increases.

. Low Cost PCs--The emergence of sub-$1,000 PCs has expanded the home computer
market and driven the development of enhanced software for smaller comput-
ers. Thus, the functionality and capabilities once available only through
high-end, costly hardware are now accessible to home users.

. Technological Advances--PC demand increases as users migrate or upgrade to
faster, newer systems. The Sponsor believes that the demand surge that sur-
rounded the arrival of Microsoft Windows 95 could potentially return with
Intel's and Microsoft's 1998-1999 product introductions.

Primary Risks

You can lose money by investing in the Portfolio. In addition, the Portfolio
may not perform as well as you hope. These things can happen for various rea-
sons, including:

. Stock prices can be volatile.

. Share prices or dividend rates on the stocks may decline during the life of
the Portfolio.

. The Portfolio is not actively managed and may continue to purchase or hold a
stock included in the Portfolio even though the stock's outlook or its mar-
ket value or yield may have changed.

. The Portfolio is concentrated in the technology industry. Adverse develop-
ments in this industry may affect the value of your Units. Companies in-
volved in the technology industry must contend with rapid changes in tech-
nology, intense competition and the rapid obsolescence of products and serv-
ices.

Investor Suitability

The Portfolio may be suitable for you if:

. You are seeking to own technology stocks in one convenient package;

. You want capital appreciation potential;

. The Portfolio represents only a portion of your overall investment portfo-
lio; and

. The Portfolio is part of a longer term investment strategy.

---
18
<PAGE>

The Portfolio is not appropriate for you if:

. You are unwilling to take the risks involved with owning a concentrated eq-
uity investment; or

. You are seeking preservation of capital or high current income.

Fees and Expenses

This table shows the fees and expenses you may pay, directly or indirectly,
when you invest in the Portfolio.

Estimated Annual Operating Expenses

Maximum Organization Costs(2)...................... $ 0.022 $ 2.20

(2) Organization costs are deducted from Portfolio assets at the earlier of
the close of the initial offering period or six months after the Initial
Date of Deposit.

The maximum per Unit sales charges are reduced as follows:

The maximum sales charge on reinvested dividends is $0.35 per Unit.

Example

This example may help you compare the cost of investing in the Portfolio to
the cost of investing in other funds.

<TABLE>
<CAPTION>
1 Year 3 Years Life of Portfolio
------- ------- -----------------
<S> <C> <C>
$497.68 $550.90 $ 609.28
</TABLE>

See "Trust Operating Expenses" in Part B of the Prospectus for additional in-
formation regarding expenses.

---
19
<PAGE>

- --------------------------------------------------------------------------------
Schedule of Investments
(at the Initial Date of Deposit, March 23, 1999)

Nuveen Dow JonesSM Technology Sector Portfolio, March 1999

<TABLE>
<CAPTION>
Percentage
of
Aggregate Cost of Current
Number of Ticker Offering Market Value Securities to Dividend
Shares Name of Issuer of Securities(1) Symbol Price per Share Portfolio(2) Yield(3)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dow JonesSM Communications Technology 31.96%
213 Alcatel, ADR ALA 4.02% $ 23.6250 $ 5,032 1.36%
49 Cisco Systems, Inc. CSCO 4.03% 102.7500 5,035 N/A
78 Level 3 Communications, Inc. LVLT 3.99% 64.0000 4,992 N/A
50 Lucent Technologies Inc. LU 4.04% 101.0625 5,053 0.16%
69 Motorola, Inc. MOT 3.98% 72.0625 4,972 0.67%
33 Nokia Corporation, ADR NOK/A 3.94% 149.3750 4,929 0.72%
83 Northern Telecom Limited (4) NT 4.00% 60.3125 5,006 0.50%
222 Telefonaktiebolaget LM Ericsson, ADR ERICY 3.96% 22.3125 4,953 0.95%

Dow JonesSM Computers 24.04%
166 Compaq Computer Corporation CPQ 4.00% 30.1250 5,001 0.27%
133 Dell Computer Corporation DELL 4.03% 37.8750 5,037 N/A
43 EMC Corporation EMC 3.98% 115.7500 4,977 N/A
72 Hewlett-Packard Company HWP 3.97% 69.0000 4,968 0.93%
30 International Business Machines Corporation IBM 4.01% 167.1875 5,016 0.53%
45 Sun Microsystems, Inc. SUNW 4.05% 112.5000 5,063 N/A

Dow JonesSM Semiconductor 12.02%
84 Applied Materials, Inc. AMAT 4.03% 60.0625 5,045 N/A
43 Intel Corporation INTC 3.96% 115.1250 4,950 0.10%
50 Texas Instruments Incorporated TXN 4.03% 100.7500 5,038 0.34%

Dow JonesSM Software 31.98%
154 BMC Software, Inc. BMCS 4.00% 32.5000 5,005 N/A
147 Computer Associates International, Inc. CA 4.01% 34.0625 5,007 0.23%
85 Computer Sciences Corporation CSC 3.97% 58.4375 4,967 N/A
213 Compuware Corporation CPWR 3.97% 23.3125 4,966 N/A
103 Electronic Data Systems Corporation EDS 3.98% 48.3125 4,976 1.24%
29 Microsoft Corporation MSFT 4.01% 172.8125 5,012 N/A
183 Oracle Corporation ORCL 3.98% 27.1875 4,975 N/A
198 SAP AG, ADR SAP 4.06% 25.6250 5,074 N/A
----- ------ --------
2,575 100% $125,049
===== ====== ========
</TABLE>
- ---------
See "Notes to Portfolios."

Please note that if this prospectus is used as a preliminary prospectus for fu-
ture Nuveen Defined Portfolios, the portfolio will contain different stocks
from those described above.

---
20
<PAGE>

Securities Descriptions

The stocks of the following companies are included in the Portfolio:

Alcatel, ADR (ALA)
Alcatel, headquartered in France, is engaged in the design, development and
supply of telecommunications and multimedia equipment, systems and services.
The Company is also engaged in the cable, defense, energy and transportation
fields.

Applied Materials, Inc. (AMAT)
Applied Materials, Inc. develops, manufactures, markets and services semicon-
ductor wafer fabrication equipment and related spare parts for the worldwide
semiconductor industry.

BMC Software, Inc. (BMCS)
BMC Software, Inc. provides systems management software solutions for host
mainframe and distributed information systems. The Company also sells and pro-
vides maintenance, enhancement and support services for its products.

Cisco Systems, Inc. (CSCO)
Cisco Systems, Inc. supplies data networking products to the corporate enter-
prise and public wide area service provider markets. The Company offers a vari-
ety of products including routers, LAN switches, frame relay/ATM, and remote
access concentrators, which allow people to access or transfer information
without regard to differences in time, place, or type of computer system.

Compaq Computer Corporation (CPQ)
Compaq Computer Corporation designs, develops, manufactures and markets a range
of computing products, including desktop and portable computers and tower PC
servers. The Company markets its products to business, home, government, and
education customers.

Computer Associates International, Inc. (CA)
Computer Associates International, Inc. designs, develops, markets, licenses,
and supports a wide range of integrated computer software products. The
Company's products are used with a variety of desktop, midrange, and mainframe
computers.

Computer Sciences Corporation (CSC)
Computer Sciences Corporation provides information technology services through
outsourcing (operating a customer's technology infrastructure); systems inte-
gration (designing, developing and implementing information systems); and I/T
and management consulting services.

Compuware Corporation (CPWR)
Compuware Corporation provides software products and professional services de-
signed to increase the productivity of the information system departments of
enterprises worldwide.

Dell Computer Corporation (DELL)
Dell Computer Corporation designs, develops, manufactures, markets, services,
and supports a variety of computer systems, including desktops, notebooks and
network services. The Company also customizes products and services to end-user
requirements.

EMC Corporation (EMC)
EMC Corporation designs, manufactures, markets and supports a wide range of
storage-related hardware and software for a variety of markets including main-
frames, networks, information storage and retrieval systems.

Electronic Data Systems Corporation (EDS)
Electronic Data Systems Corporation specializes in business process management,
management consulting and electronic business solutions. The Company's services
include the management of computers, networks, information processing facili-
ties, business, operations, and related personnel.

Telefonaktiebolaget LM Ericsson, ADR (ERICY)
Telefonaktiebolaget LM Ericsson, headquartered in Sweden, is an international
manufacturer of advanced systems and products for wired and mobile communica-
tions in public and private networks. The Company also produces electronic de-
fense systems, cable and network systems, and radio communications and compo-
nents.

Hewlett-Packard Company (HWP)
Hewlett-Packard Company designs, manufactures and services products and systems
for computation and communications. The Company sells its products, including
DeskJet printers and HP calculators, around the world.

Intel Corporation (INTC)
Intel Corporation designs, manufactures, and sells computer components and re-
lated products worldwide. The Company's major products include conferencing,
microprocessors, flash memory products, chipsets, graphics products, embedded
processors and microcontrollers, network and communications products, and digi-
tal imaging products.

International Business Machines Corporation (IBM)
International Business Machines Corporation develops, manufactures and sells
advanced technology processing products, including computers and microelec-
tronic technology, software, networking systems and information technology-re-
lated services.

Level 3 Communications, Inc. (LVLT)
Level 3 Communications, Inc. provides telecommunications and information serv-
ices, including local, long distance, and data transmission. The Company is
currently developing a national fiber-optic network.

Lucent Technologies Inc. (LU)
Lucent Technologies Inc. designs, develops and manufactures telecommunications
systems, software and products which are sold worldwide. The Company is a top
maker of digital signal processors and telecommunication power systems.

---
21
<PAGE>

Microsoft Corporation (MSFT)
Microsoft Corporation develops, manufactures, licenses, and supports a range of
software products, including scalable operating systems, server applications,
business and consumer productivity applications, software development tools,
and Internet software and technologies. The Company is best known for its
Microsoft MS-DOS and Microsoft Windows operating systems.

Motorola, Inc. (MOT)
Motorola, Inc. provides wireless communications, semiconductors and advanced
electronic systems, components and services. The Company's equipment businesses
include cellular telephone, two-way radio, paging and data communications; au-
tomotive, defense and space electronics; and computers.

Nokia Corporation, ADR (NOK/A)
Nokia Corporation, headquartered in Finland, is an international telecommunica-
tions company which develops and manufactures mobile phones, networks and sys-
tems for cellular and fixed networks.

Northern Telecom Limited (NT)
Northern Telecom Limited designs, develops manufactures, marks, sells, fi-
nances, installs and services fully digital telecommunications systems. The
Company also provides products and services to the telecommunications and cable
television industries.

Oracle Corporation (ORCL)
Oracle Corporation designs, develops, markets, and supports computer software
products with a variety of uses, including database management, application de-
velopment, and business intelligence and applications.

SAP AG, ADR (SAP)
SAP AG, headquartered in Germany, is engaged in the design and development of
business application software. The Company develops software that helps compa-
nies link their business processes, tying together disparate business func-
tions. SAP markets its products and services through subsidiaries, distributors
and other business partners worldwide.

Sun Microsystems, Inc. (SUNW)
Sun Microsystems, Inc. supplies network computing products, including desktop
systems, servers, storage subsystems, network switches, software, microproces-
sors, and a full range of services and support. The Company's products are used
for many demanding commercial and technical applications in various industries.

Texas Instruments Incorporated (TXN)
Texas Instruments Incorporated is a global semiconductor company and a leading
designer and supplier of digital signal processing solutions. The Company's
digital signal processors (DSPs) are used in programmable products such as
VCRs, camcorders, and cellular phones.

---
22
<PAGE>

Nuveen Retail Sector Portfolio, March 1999

Risk/Return Summary

Investment Objective

The Portfolio seeks to provide capital appreciation.

Investment Strategy

The Portfolio consists of the stocks of retail companies. The Portfolio is di-
versified across the retail industry including general retailers, specialty
retailers and retail manufacturers.

The stocks are expected to remain in the Portfolio until termination.

Security Selection

To create the Portfolio, the Sponsor follows these steps:

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

. determines weighting of each Industry Group within the Portfolio;

. assesses the relative attractiveness of stocks within each Industry Group;

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

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

As of the Initial Date of Deposit, the stocks in the Portfolio are approxi-
mately equally dollar weighted.

Sector Description

A number of economic and industry trends have stimulated consumer spending,
resulting in rising retail sales. The Sponsor believes that the following fac-
tors should increase the growth potential of the retail sector:

. Increasing population;

. Expanding retail markets;

. Better consumer data;

. High immigration rates;

. Expanding teen-aged population; and

. Increased birth rates.

In addition, the Internet has provided consumers around the world with faster,
more convenient access to a wider variety of retail markets. In fact, industry
experts predict that over half of all retail purchases will be made on-line by
2010.

Retailers can now utilize extensive data warehouses to better understand cus-
tomer needs, forecast demand and manage inventory. This makes retailers more
efficient and better able to attract consumer spending.

Primary Risks

You can lose money by investing in the Portfolio. In addition, the Portfolio
may not perform as well as you hope. These things can happen for various rea-
sons, including:

. Stock prices can be volatile.

. Share prices or dividend rates on the stocks may decline during the life of
the Portfolio.

. The Portfolio is not actively managed and may continue to purchase or hold a
stock included in the Portfolio even though the stock's outlook or its mar-
ket value or yield may have changed.

. The Portfolio is concentrated in the retail industry. Adverse developments
in this industry may affect the value of your Units. Companies involved in
the retail industry must contend with intense competition, cyclical market
patterns, changing spending trends and the economy.

Investor Suitability

The Portfolio may be suitable for you if:

. You are seeking to own retail stocks in one convenient package;

. You want capital appreciation potential;

. The Portfolio represents only a portion of your overall investment portfo-
lio; and

. The Portfolio is part of a longer term investment strategy.

The Portfolio is not appropriate for you if:

. You are unwilling to take the risks involved with owning a concentrated eq-
uity investment; or

. You are seeking preservation of capital or high current income.

---
23
<PAGE>

Fees and Expenses

This table shows the fees and expenses you may pay, directly or indirectly,
when you invest in the Portfolio.

Estimated Annual Operating Expenses

<TABLE>
<CAPTION>
Amount per
$1,000
Invested
(as of
Initial Date
Amount per Unit of Deposit)
--------------- ------------
<S> <C> <C>
Trustee's Fee...................................... $0.00950 $ 0.95
Sponsor's Supervisory Fee.......................... $0.00350 $ 0.35
Bookkeeping and Administrative Fees................ $0.00250 $ 0.25
Evaluator's Fees................................... $0.00300 $ 0.30
Other Operating Expenses........................... $0.00550 $ 0.55
-------- ------
Total.............................................. $0.02400 $ 2.40

Maximum Organization Costs(1)...................... $ 0.022 $ 2.20

(1) Organization costs are deducted from Portfolio assets at the earlier of
the close of the initial offering period or six months after the Initial
Date of Deposit.

The maximum per Unit sales charges are reduced as follows:

The maximum sales charge on reinvested dividends is $0.35 per Unit.

Example

This example may help you compare the cost of investing in the Portfolio to
the cost of investing in other funds.

<TABLE>
<CAPTION>
Life of
1 Year 3 Years Portfolio
------ ------- ---------
<S> <C> <C>
$495.71 $544.84 $598.77
</TABLE>

See "Trust Operating Expenses" in Part B of the Prospectus for additional in-
formation regarding expenses.

---
24
<PAGE>

- --------------------------------------------------------------------------------
Schedule of Investments
(at the Initial Date of Deposit, March 23, 1999)

Nuveen Retail Sector Portfolio, March 1999

Broadlines 36.09%
74 Dayton Hudson Corporation DH 3.98% 67.0625 4,963 0.60%
129 Federated Department Stores, Inc. FD 4.04% 39.0625 5,039 N/A
129 J.C. Penney Company, Inc. JCP 4.05% 39.1250 5,047 0.05%
291 Kmart Corporation KM 3.98% 17.0625 4,965 N/A
68 Kohl's Corporation KSS 4.02% 73.7500 5,015 N/A
88 The May Department Stores Company MAY 3.99% 56.6250 4,983 2.36%
132 Nordstrom, Inc. NOBE 4.06% 38.3125 5,057 0.84%
114 Sears, Roebuck and Co. S 4.00% 43.6875 4,980 2.11%
53 Wal-Mart Stores, Inc. WMT 3.97% 93.3125 4,946 0.43%

Hardlines 36.03%
152 AutoZone, Inc. AZO 4.02% 32.9375 5,007 N/A
154 Barnes & Noble, Inc. BKS 4.04% 32.6875 5,034 N/A
167 Bed Bath & Beyond Inc. BBBY 3.95% 29.5000 4,927 N/A
65 Circuit City Stores, Inc. CC 4.05% 77.6250 5,046 0.18%
842 CompUSA Inc. CPU 4.14% 6.1250 5,157 N/A
79 The Home Depot, Inc. HD 3.95% 62.3750 4,928 0.19%
81 Lowe's Companies, Inc. LOW 3.99% 61.3750 4,971 0.20%
155 Staples, Inc. SPLS 3.89% 31.3125 4,853 N/A
288 Toys "R" Us, Inc. TOY 4.00% 17.3125 4,986 N/A

Supermarkets & Drugstores 19.88%
84 Albertson's, Inc. ABS 4.01% 59.4375 4,993 1.21%
104 CVS Corporation CVS 4.04% 48.4375 5,038 0.47%
181 Rite Aid Corporation RAD 3.89% 26.8125 4,853 1.72%
93 Safeway Inc. SWY 3.96% 53.1250 4,941 N/A
171 Walgreen Co. WAG 3.98% 29.0000 4,959 0.45%
----- ----- --------
3,923 100% $124,657
===== ===== ========
</TABLE>
- ---------
See "Notes to Portfolios."

Please note that if this prospectus is used as a preliminary prospectus for fu-
ture Nuveen Defined Portfolios, the portfolio will contain different stocks
from those described above.

---
25
<PAGE>

Securities Descriptions

The stocks of the following companies are included in the Portfolio:

Albertson's, Inc. (ABS)
Albertson's, Inc. is one of the largest food and drug retailers in the United
States, with nearly 1,000 stores in the west, midwest and south. The Company
also operates Max Food and Drug no-frills discount warehouse stores.

AutoZone, Inc. (AZO)
AutoZone, Inc. is a specialty retailer of automotive parts, chemicals, and ac-
cessories targeting the do-it-yourself consumer. The Company operates more than
2,000 stores located in 38 states.

Barnes & Noble, Inc. (BKS)
Barnes & Noble, Inc. is the number one bookseller in the U.S. The Company,
which operates more than 1,000 superstores and mall-based bookstores, also runs
a leading direct-mail bookselling business and a growing online business.

Bed Bath & Beyond Inc. (BBBY)
Bed Bath & Beyond Inc. sells domestic items and home furnishings, including
brand name merchandise such as Laura Ashley, Calphalon, and Krups products. The
Company operates more than 180 stores in 34 states.

CVS Corporation (CVS)
CVS Corporation operates the second largest drug store chain in the United
States, with approximately 4,000 CVS, Arbor and Revco stores in the east and
midwest. The Company also provides managed-care drug programs through
PharmaCare Management Services.

Circuit City Stores, Inc. (CC)
Circuit City Stores, Inc. is a specialty retailer of brand name consumer elec-
tronics and major appliances. The Company operates 500 Circuit City stores
throughout the U.S., as well as seven CarMax Group used-car dealerships located
in Florida and elsewhere in the southeast.

CompUSA Inc. (CPU)
CompUSA Inc. retails and resells personal computers and related products and
services. The Company is the country's leading computer retailer, operating
more than 200 CompUSA superstores in 40 states.

Dayton Hudson Corporation (DH)
Dayton Hudson Corporation is a general merchandise retailer, specializing in
large-store formats, including discount stores, moderate-priced promotional and
traditional department stores. The Company operates three distinct divisions:
Target, Mervyn's and a department store division.

Federated Department Stores, Inc. (FD)
Federated Department Stores, Inc. operates full-line department stores offering
men's, women's and children's apparel and accessories, cosmetics, home furnish-
ings, and other consumer goods. The Company also operates Bloomingdale's By
Mail, Aeropostale, and Charter Club.

The Gap, Inc. (GPS)
The Gap, Inc. is an international specialty retailer which operates more than
2,100 stores selling casual apparel, personal care and other accessories for
men, women and children. The Company sells its products under a number of brand
names, including Gap, GapKids, babyGap, Banana Republic, and Old Navy.

The Home Depot, Inc. (HD)
The Home Depot, Inc. sells building materials and home improvement products to
homeowners and professional contractors from more than 700 stores in the United
States and Canada. The Company is also expanding into Puerto Rico and South
America.

J.C. Penney Company, Inc. (JCP)
J.C. Penney Company, Inc. operates department stores in all 50 states, Puerto
Rico, Mexico, and Chile. The Company also provides merchandise and services to
customers through its catalogs and operates a chain of drugstores and several
insurance companies.

Kmart Corporation (KM)
Kmart Corporation is an international retailer which operates Kmart, Big Kmart,
and Super Kmart stores. The Company offers products ranging from apparel and
cosmetics to home improvement supplies and furnishings. Kmart operates in the
U.S., Puerto Rico, Guam, and the U.S. Virgin Islands.

Kohl's Corporation (KSS)
Kohl's Corporation operates a chain of family-oriented, specialty department
stores featuring moderately priced apparel, shoes, accessories, and housewares
targeted to middle income customers. Kohl's operates primarily in the Midwest
and the Mid-Atlantic areas of the U.S.

Lowe's Companies, Inc. (LOW)
Lowe's Companies, Inc. is the second largest home improvement chain in the
United States, with more than 450 stores. The Company sells a broad range of
building supplies, home decor and garden products, and consumer electronics and
appliances.

The May Department Stores Company (MAY)
The May Department Stores Company is one of the largest department store opera-
tors in the U.S. The Company operates approximately 400 stores under names such
as Lord & Taylor, Filene's, Robinsons-May, and Famous-Baar.

Nordstrom, Inc. (NOBE)
Nordstrom, Inc. is an upscale fashion retailer of apparel, shoes, and accesso-
ries for women, men, and children. The Company sells its goods through more
than 90 stores in 22 states and through its Nordstrom catalog.

Rite Aid Corporation (RAD)
Rite Aid Corporation operates a national retail chain of approximately 3,900
drugstores in 32 states and the District of Columbia. The Company offers cos-
metics, designer fragrances, frozen meals, dairy products, and other conve-
nience foods.

---
26
<PAGE>

Safeway Inc. (SWY)
Safeway Inc. is one of the nation's top five food retailers. The Company's
nearly 1,500 stores in the U.S. and Canada include Vons stores in California
and the Dominick's chain in the Chicago area.

Sears, Roebuck and Co. (S)
Sears, Roebuck and Co. retails a wide array of merchandise and services world-
wide. The Company's operations include full-line and specialty stores, home
services, direct response marketing, and credit. Sears stores offer apparel,
appliances, electronics, sporting goods, tools, furniture, automotive merchan-
dise, and other products.

Staples, Inc. (SPLS)
Staples, Inc. operates approximately 800 office products superstores in the
United States, Canada, the United Kingdom, and Germany. The Company also oper-
ates a direct mail catalog business and a contract stationer operation for
businesses and individual consumers.

The TJX Companies, Inc. (TJX)
The TJX Companies, Inc. retails off-price apparel and home fashions via its op-
erations of T.J. Maxx, Marshalls, and HomeGoods stores. The Company also oper-
ates Winners Apparel Ltd. in Canada and T.K. Maxx in Europe.

Toys "R" Us, Inc. (TOY)
Toys "R" Us, Inc. is the world's top toy retailer, operating approximately
1,500 retail outlets as well as Internet and mail-order catalog businesses. The
Company sells toys, games, and computer software at its Toys "R" Us stores and
children's clothing at its Kids "R" Us and Babies "R" Us Stores.

Walgreen Co. (WAG)
Walgreen Co. operates retail drugstores selling prescription and nonprescrip-
tion drugs, general merchandise, liquor, beverages, cosmetics and tobacco prod-
ucts. The Company operates approximately 2,500 stores in 34 states and Puerto
Rico.

Wal-Mart Stores, Inc. (WMT)
Wal-Mart Stores, Inc. is the world's largest retailer. The Company operates
more than 3,500 Wal-Mart discount stores, Sam's Club members-only warehouse
stores, and Wal-Mart Supercenters (combination discount/grocery stores) world-
wide.

---
27
<PAGE>

How to Buy and Sell Units

Investing in the Portfolios

The minimum investment is normally $1,000 or 100 Units, whichever is less.
However, for Education IRA purchases the minimum investment is $500 or the
nearest whole number of Units whose value is less than $500.

You can buy Units from any participating dealer.

As of March 23, 1999, the Initial Date of Deposit, the per Unit Public Offer-
ing Price for each Portfolio is $10.00. As described above, Units are subject
to an upfront sales charge that is equal to the difference between 4.5% of the
Public Offering Price and the remaining deferred sales charges. If a Portfolio
has any remaining deferred sales charges, you will also pay those charges. The
Public Offering Price includes the upfront sales charge and the estimated or-
ganization cost of $0.022 per Unit. The Public Offering Price changes every
day with changes in the price of the securities. As of the close of business
on March 23, 1999, the number of Units of each Portfolio may be adjusted so
that the per Unit Public Offering Price will equal $10.00.

If you are buying Units with assets received from the redemption or termina-
tion of another Nuveen Defined Portfolio, you will pay a reduced sales charge
of $0.35 per Unit. You may also buy Units with that sales charge if you are
purchasing Units with the termination proceeds from a non-Nuveen unit trust
with a similar investment strategy. Such purchases entitled to this sales
charge reduction may be classified as "Rollover Purchases." In addition, Wrap
Account Purchases and certain other investors described in Part B of the Pro-
spectus, may buy Units at the Public Offering Price for non-breakpoint pur-
chases minus the concession the Sponsor typically allows for dealers for non-
breakpoint purchases.

Each Portfolio's securities are valued by the Evaluator, the Chase Manhattan
Bank, generally on the basis of their closing sales prices on the applicable
national securities exchange or The Nasdaq Stock Market, Inc. every business
day.

The Sponsor intends to periodically create additional Units of each Portfolio.
See "Nuveen Defined Portfolios" and "Composition of Trusts" in Part B of the
Prospectus for more details.

See "Public Offering Price" and "Market for Units" in Part B for additional
information.

Sales or Redemptions

Units may be redeemed by the Trustee, The Chase Manhattan Bank, on any busi-
ness day at their current market value. Unitholders who purchase at least
1,000 Units may elect to be distributed the underlying stock, rather than
cash, if the election is made at least five business days prior to a Portfo-
lio's termination.

Although not obligated to do so, the Sponsor, John Nuveen & Co. Incorporated,
may maintain a market for Units and offer to repurchase the Units at prices
based on their current market value. If a secondary market is not maintained,
a Unitholder may still redeem Units through the Trustee.

During the period ending with the earlier of six months after the Initial Date
of Deposit or the end of the initial offering period, the price at which the
Trustee will redeem Units and the price at which the Sponsor may repurchase
Units include estimated organization costs. After such period, the amount paid
will not include such estimated organization costs.

Any applicable deferred sales charges remaining on Units at the time of their
sale or redemption will be collected at that time.

See "Redemption" and "Market for Units" in Part B of the Prospectus for de-
tails.

Risk Factors

You can lose money by investing in a Portfolio. Recently, equity markets have
experienced significant volatility. Your investment is at risk primarily be-
cause of:

. Market risk

Market risk is the risk that a particular stock in a Portfolio, the Portfo-
lio itself or stocks in general may fall in value. Market value may be af-
fected by a variety of factors including:

--General stock market movements;

--Changes in the financial condition of an issuer or an industry;

--Changes in perceptions about an issuer or an industry;

--Interest rates and inflation;

--Governmental policies and litigation; and

--Purchases and sales of securities by a Portfolio.

---
28
<PAGE>

. Inflation risk

Inflation risk is the risk that the value of assets or income from invest-
ments will be less in the future as inflation decreases the value of money.

. Small company risk

Some of the stocks selected for the Portfolios may be issued by small capi-
talization companies. These stocks customarily involve more investment risk
than larger capitalization stocks. These additional risks are due in part to
the following factors. Small cap companies may:

--Have limited product lines, markets or financial resources;

--Have less publicly available information;

--Lack management depth or experience;

--Be less liquid;

--Be more vulnerable to adverse general market or economic developments; and

--Be dependent upon products that were recently brought to market or key
personnel.

.Concentration risk

When stocks in a particular industry make up 25% or more of a Portfolio, it
is said to be "concentrated" in that industry, which makes a Portfolio less
diversified and subject to more market risk. The Portfolios are concentrated
in the securities of their respective industries.

Energy Industry--Here is what you should know about a concentration in
stocks of the energy industry:

--Companies involved in this industry must contend with:

changes in value and dividend yield which depend largely on the price and
supply of unpredictable energy fuels and consumer demand;

energy conservation;

taxes; and

government regulation.

--International politics may cause price and supply fluctuations.

--Increasing sensitivity to environmental concerns will likely pose serious
challenges to the industry over the coming decade.

Financial Services Industry--There are four types of financial services com-
panies included in the Financial Services Portfolio: banks and thrifts, in-
surance companies, investment firms and real estate firms.

--Banks and thrifts must contend with:
. volatile interest rates;
. the adverse affects of economic recession;
. competition;
. portfolio concentrations in geographic markets and in real estate loans;
and
. significant regulation.

--Insurance companies must contend with:
. interest rate movements;
. the imposition of premium rate caps;
. competition and pressure to compete globally;
. weather catastrophes and other disasters that require payouts;
. mortality rates; and
. government regulation or tax law changes.

--Investment firms must contend with:
. shrinking profit margins due to new competitors;
. the cost of new technology; and
. the pressure to compete globally.

--Real estate firms must contend with:
. volatile interest rates;
. economic recession;
. changes in the real estate market;
. vacancy rates; and
. competition.

Pharmaceutical Industry--Here is what you should know about a concentration
in stocks of the pharmaceutical industry:

--Companies involved in this industry must contend with:

increasing competition from generic drug sales;

termination of their patent protection for drug products; and

technological advances that may render their products or services obso-
lete.

--Governmental regulation of their products and services can have a signifi-
cant unfavorable effect on the price and availability of such products or
services.

---
29
<PAGE>

Technology Industry--Here is what you should know about a concentration in
stocks of the technology industry:

--Companies involved in this industry must contend with:

rapid changes in technology;

worldwide competition;

rapid obsolescence of products and services;

cyclical market patterns;

evolving industry standards; and

frequent new product introductions.

--An unexpected change in one or more of the technologies affecting an is-
suer's products or in the market for products based on a particular tech-
nology could have an adverse effect on an issuer's operating results.

--Operating results and customer relationships could be adversely affected
by:

an increase in price for, or an interruption or reduction in supply of,
any key components; and

the failure of the issuer to comply with rigorous industry standards.

Retail Industry--Here is what you should know about a concentration in
stocks of the retail industry:

--Companies involved in this industry must contend with:

intense competition;

cyclical market patterns;

changing consumer spending trends; and

the state of the economy.

--American retailers entering global markets may have difficulty adapting to
constraints, foreign economies and added research costs.

.Foreign risks

Certain of the securities included in the Portfolios may be foreign securi-
ties or American Depositary Receipts ("ADRs") of foreign companies. ADRs are
denominated in U.S. dollars and are typically issued by a U.S. bank or trust
company. An ADR evidences ownership of an underlying foreign security. For-
eign securities present risks beyond securities of U.S. issuers. Foreign
companies may be affected by:

--adverse political, diplomatic and economic developments;

--changes in foreign currency exchange rates; and

--taxes and less publicly available information.

Distributions

Income Distributions

Cash dividends received by each Portfolio, net of expenses, will be paid each
June 30 and December 31 ("Income Distribution Dates"), beginning June 30,
1999, to Unitholders of record each June 15 and December 15 ("Income Record
Dates"), respectively.

Capital Distributions

Distributions of funds in the Capital Account, net of expenses, will be made
when a Portfolio terminates. In certain circumstances, additional distribu-
tions may be made.

See "Distributions To Unitholders" in Part B of the Prospectus for more de-
tails.

General Information

Termination

Commencing on April 1, 2004, the Mandatory Termination Date, the securities in
the Portfolios will begin to be sold as prescribed by the Sponsor. The Trustee
will provide written notice of the termination to Unitholders which will spec-
ify when certificates may be surrendered.

Unitholders will receive a cash distribution within a reasonable time after a
Portfolio terminates. However, Unitholders who purchase at least 1,000 Units
may elect to be distributed the underlying stock if the election is made at
least five business days prior to a Portfolio's termination. See "Distribu-
tions to Unitholders" and "Other Information--Termination of Indenture" in
Part B of the Prospectus for more details.

The Sponsor

Since our founding in 1898, John Nuveen & Co. Incorporated has been synonymous
with invest-

---
30
<PAGE>

ments that withstand the test of time. Today, we offer a range of equity and
fixed-income unit trusts designed to suit the unique circumstances and finan-
cial planning needs of mature investors. Nuveen, a leader in tax-efficient in-
vesting, believes that a carefully selected portfolio can play an important
role in building and sustaining the wealth of a lifetime. More than 1.3 mil-
lion investors have trusted Nuveen to help them maintain the lifestyle they
currently enjoy.

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

Portfolio Selection

The stocks included in the Portfolios were selected by Nuveen's research de-
partment with the assistance of Lehman Brothers Inc., a 148-year-old global
investment bank with over 100 equity analysts. For those Portfolios designated
as Nuveen Dow Jones Sector Portfolios, Nuveen has chosen the Dow Jones Global
Indexes, published by Dow Jones & Company, as the basis of such sector portfo-
lios.

In addition to being the leading publisher of business and financial news, Dow
Jones is noted for stock market indexes. The Dow Jones Industrial Average was
launched in 1896 and today is the best known market indicator in the world.
Nearly a century later, Dow Jones introduced its global indexes, covering
3,000 companies in 34 countries and representing 121 industry groups in 9 mar-
ket sectors.

Dealer Concessions

The Sponsor plans to allow a concession of 3.50% for non-breakpoint purchases
of Units to dealer firms in connection with the sale of Units in a given
transaction.

The concession paid to dealers is reduced or eliminated in connection with
Units sold in transactions to investors that receive reduced sales charges
based on the number of Units sold or in connection with Units sold in Rollover
Purchases, Wrap Account Purchases and to other investors entitled to the sales
charge reduction applicable for Wrap Account Purchases, as follows:

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

<TABLE>
<CAPTION>
%
Concession
Number of Units* per Unit
- ---------------- ----------
<S> <C>
Less than 5,000...................................................... 3.50%
5,000 to 9,999....................................................... 3.25
10,000 to 24,999..................................................... 3.00
25,000 to 49,999..................................................... 2.50
50,000 to 99,999..................................................... 1.50
100,000 or more...................................................... 0.75
Rollover Purchases (per Unit)........................................ $0.25
Wrap Account Purchases............................................... 0.00
</TABLE>
*Sales charge reductions are computed both on a dollar basis and on the basis
of the number of Units purchased, using the equivalent of 5,000 Units to
$50,000, 10,000 Units to $100,000 etc., and will be applied on that basis
which is more favorable to the purchaser and may result in a reduction in the
discount per Unit.

For secondary market sales, the Sponsor plans to allow a concession of 3.50%
of the Public Offering Price to dealer firms.

See "Distributions of Units to the Public" in Part B of the Prospectus for ad-
ditional information on dealer concessions and volume incentives.

Optional Features

Letter of Intent (LOI)

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

Reinvestment

Distributions from a Portfolio can be invested with no sales charge into
Nuveen mutual or money market funds. Also, income and certain capital distri-
butions from a Portfolio can be reinvested at a reduced sales charge into ad-
ditional Units of the Portfolio. Distributions reinvested into a Portfolio are
subject to any remaining deferred sales charges. See "Distributions to
Unitholders" and "Accumulation Plan" in Part B of the Prospectus for details.

Nuveen Mutual Funds

Portfolio purchases may be applied toward breakpoint pricing discounts for
Nuveen Mutual Funds. For more information about Nuveen investment products,
obtain a prospectus from your financial adviser.

---
31
<PAGE>

- -------------------------------------------------------------------------------
Notes to Portfolios

(1) All securities are represented by regular way contracts to purchase such
securities for the performance of which an irrevocable letter of credit
has been deposited with the Trustee. The contracts to purchase the securi-
ties were entered into by the Sponsor on March 22, 1999.

(2) The cost of the securities to each Portfolio represents the aggregate un-
derlying value with respect to the securities acquired (generally deter-
mined by the closing sale prices of the listed securities on the business
day preceding the Initial Date of Deposit). The valuation of the securi-
ties has been determined by the Trustee. As of the Initial Date of Depos-
it, other information regarding the securities is as follows:

<TABLE>
<CAPTION>
Estimated Estimated Net
Value of Cost to Gain Annual Income Annual Income
Securities Sponsor (loss) Per Portfolio Per Unit
---------- -------- ------ ------------- -------------
<S> <C> <C> <C> <C> <C>
Energy Sector Portfolio. $124,767 $124,864 $ (97) $2,270 $0.15416
Financial Services
Sector Portfolio....... $124,976 $124,946 $ 30 $3,044 $0.21514
Pharmaceutical Sector
Portfolio.............. $124,609 $124,670 $ (61) $1,119 $0.06291
Technology Sector
Portfolio.............. $125,049 $125,187 $(138) $ 417 $0.00701
Retail Sector Portfolio. $124,657 $124,794 $(137) $ 565 $0.02084
</TABLE>

Estimated Annual Income Distributions are based on the most recent ordinary
dividend paid on that security. Estimated Annual Income Distributions per
Unit are based on the number of Units, the fractional undivided interest in
the Securities per Unit and the aggregate value of the Securities per Unit
as of the Initial Date of Deposit. Investors should note that the actual
amount of income distributed per Unit by a Portfolio will vary from the es-
timated amount due to a variety of factors including, changes in the items
described in the preceding sentence, expenses and actual dividends declared
and paid by the issuers of the securities.

(3) Current Dividend Yield for each security was calculated by annualizing the
most recent ordinary dividend paid on that security and dividing the re-
sult by that security's closing sale price on the business day prior to
the Initial Date of Deposit.

(4) This security represents the common stock of a foreign company which
trades directly on a United States national securities exchange.

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

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32
<PAGE>

Statement of Condition
(at the Initial Date of Deposit, March 23, 1999)

<TABLE>
<CAPTION>
Financial
Energy Services Pharmaceutical Technology Retail
Sector Sector Sector Sector Sector
Portfolio Portfolio Portfolio Portfolio Portfolio
----------- ----------- -------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Trust Property
Investment in securities
represented by purchase
contracts(1)(2)........ $124,767.00 $124,976.00 $124,609.00 $125,049.00 $124,657.00
=========== =========== =========== =========== ===========
Liabilities and Interest
of Unitholders
Liabilities:
Deferred sales
charge(3)............ $ 4,411.00 $ 4,418.00 $ 4,405.00 $ 4,421.00 $ 4,407.00
Reimbursement of Spon-
sor for organization
costs(4)............. 277.24 277.71 276.89 277.88 277.00
----------- ----------- ----------- ----------- -----------
Total.............. $ 4,688.24 $ 4,695.71 $ 4,681.89 $ 4,698.88 $ 4,684.00
=========== =========== =========== =========== ===========
Interest of Unitholders:
Units of fractional
undivided interest
outstanding.......... 12,602 12,623 12,586 12,631 12,591
Cost to investors(5).. $125,971.00 $126,182.00 $125,811.00 $126,255.00 $125,860.00
Less: Gross under-
writing commis-
sion(6)............. 5,615.00 5,624.00 5,607.00 5,627.00 5,610.00
Less: Organization
costs(4)............ 277.24 277.71 276.89 277.88 277.00
----------- ----------- ----------- ----------- -----------
Net amount applicable
to investors......... $120,078.76 $120,280.29 $119,927.11 $120,350.12 $119,973.00
----------- ----------- ----------- ----------- -----------
Total.............. $124,767.00 $124,976.00 $124,609.00 $125,049.00 $124,657.00
=========== =========== =========== =========== ===========
</TABLE>
- ---------

(1) Aggregate cost of securities listed under "Schedule of Investments" is
based on their aggregate underlying value.

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

(3) Represents the amount of mandatory distributions from a Portfolio ($0.35
per Unit), payable to the Sponsor in equal monthly installments of
$0.07 per Unit beginning on October 29, 1999, and on the last business day
of each month thereafter through February 29, 2000.

(4) A portion of the Public Offering Price consists of an amount sufficient to
reimburse the Sponsor for all or a portion of the costs of establishing a
Portfolio. These costs have been estimated at $0.022 per Unit for each
Portfolio. A payment will be made as of the earlier of six months after
the Initial Date of Deposit or the end of the initial offering period to
an account maintained by the Trustee from which the obligations of the in-
vestors to the Sponsor will be satisfied. To the extent that actual organ-
ization costs are greater than the estimated amount, only the estimated
organization costs added to the Public Offering Price will be reimbursed
to the Sponsor and deducted from the assets of a Portfolio.

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

(6) The gross underwriting commission of 4.50% per Unit includes both an up-
front and a deferred sales charge and has been calculated on the assump-
tion that the Units sold are not subject to a reduction of sales charges.
In single transactions involving 5,000 Units or more, the sales charge is
reduced. (See "PUBLIC OFFERING PRICE" in Part B of this Prospectus.)

---
33
<PAGE>

Report of Independent Public Accountants

To the Board of Directors of John Nuveen & Co. Incorporated and Unitholders of
Nuveen Unit Trusts, Series 37:

We have audited the accompanying statements of condition and the schedules of
investments at date of deposit (included in Part A of this Prospectus) of
Nuveen Unit Trusts, Series 37 as of March 23, 1999. These financial statements
are the responsibility of the Sponsor. Our responsibility is to express an
opinion on these financial statements based on our audit.

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

In our opinion, the statements of condition and the schedules of investments
at date of deposit referred to above present fairly, in all material respects,
the financial position of Nuveen Unit Trusts, Series 37, as of March 23, 1999,
in conformity with generally accepted accounting principles.

ARTHUR ANDERSEN LLP

Chicago, Illinois
March 23, 1999.

---
34
<PAGE>

(This page has been left blank intentionally.)

---
35
<PAGE>

[NUVEEN LOGO]
Defined NUVEEN UNIT TRUSTS, SERIES 37
Portfolios PROSPECTUS -- PART A

March 23, 1999

Sponsor John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
Telephone: 312-917-7700

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

This Prospectus does not contain complete information about the Portfolio
filed with the Securities and Exchange Commission in Washington, DC under the:

Securities Act of 1933 (file no. 333-74143)

Investment Company Act of 1940 (file no. 811-08103)

To obtain copies at proscribed rates--
Write: Public Reference Section of the Commission, 450 Fifth Street NW,
Washington, DC 20549-6009
Call: (800) SEC-0330
Visit: http://www.sec.gov

No person is authorized to give any information or representation about the
Portfolio not contained in Parts A or B of this Prospectus or the Information
Supplement, and you should not rely on any other information.

When Units of the Portfolio are no longer available or for investors who will
reinvest into subsequent series of the Portfolio, this Prospectus may be used
as a preliminary Prospectus for a future series. If this is the case, investors
should note the following:

1. Information in this Prospectus is not complete and may be changed;

2. We may not sell these securities until the registration statement
filed with the Securities and Exchange Commission is effective; and

3. This prospectus is not an offer to sell the securities of a future
series and is not soliciting an offer to buy such securities in any state
where the offer or sale is not permitted.

<PAGE>

[NUVEEN LOGO]
Defined Portfolios

Nuveen Sector Portfolio Prospectus
Prospectus Part B dated March 23, 1999

The Prospectus for a Nuveen Defined Portfolio (a "Trust") is divided into two
parts. Part A of the Prospectus relates exclusively to a particular Trust and
provides specific information regarding the Trust's portfolio, strategies,
investment objectives, expenses, financial highlights, income and capital
distributions, hypothetical performance information, risk factors and optional
features. Part B of the Prospectus provides more general information regarding
the Nuveen Defined Portfolios. You should read both Parts of the Prospectus and
retain them for future reference. Except as provided in Part A of the
Prospectus, the information contained in this Part B will apply to each Trust.

Additional information about the Trusts is provided in the Information
Supplement. You can receive an Information Supplement by calling The Chase
Manhattan Bank (the "Trustee") at (800) 257-8787.

Nuveen Defined Portfolios

Each Nuveen Defined Portfolio consists of a portfolio of Securities of
companies described in the applicable Part A of the Prospectus (see "Schedule
of Investments" in Part A of the Prospectus for a list of the Securities
included in a Trust).

Minimum Investment--$1,000 or 100 Units ($500 or nearest whole number of Units
whose value is less than $500 for Education IRA purchases), whichever is less.

Redeemable Units. Units of a Trust are redeemable at the offices of the Trustee
at prices based upon the aggregate underlying value of the Securities
(generally determined by the closing sale prices of listed Securities and the
bid prices of over-the-counter traded Securities). During the period ending
with the earlier of six months after the Initial Date of Deposit or the end of
the initial offering period, the Redemption Price per Unit includes estimated
organization costs per Unit. After such period, the Redemption Price will not
include such estimated organization costs. See "Risk/Return Summary--Fees and
Expenses" in Part A of the Prospectus for the organization costs and see
"REDEMPTION" herein for a more detailed discussion of redeeming your Units.

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

Public Offering Price. Public Offering Price of a Trust during the Initial
Offering Period is based upon the aggregate underlying value of the Securities
in the Trust's portfolio (generally determined by the closing sale prices of
the listed Securities and the ask prices of over-the-counter traded Securities)
plus or minus cash, if any, in the Income and Capital Accounts of the Trust,
plus a sales charge as set forth in Part A of the Prospectus and is rounded to
the nearest cent. The Public Offering Price during the period ending with the
earlier of six months after the Initial Date of Deposit or the end of the
initial offering period also includes organization costs incurred in
establishing a Trust. These costs will be deducted from the assets of the Trust
as of the close of such period. See "Risk/Return Summary--Fees and Expenses" in
Part A of the Prospectus. For Units purchased in the secondary market, the
Public Offering Price is based upon the aggregate underlying value of the
Securities in the Trust (generally determined by the closing sale prices of the
listed Securities and the bid prices of over-the-counter traded Securities)
plus the sales charges as set forth herein. A pro rata share of accumulated
dividends, if any, in the Income Account from the preceding Record Date to, but
not including, the settlement date (normally three business days after
purchase) is added to the Public Offering Price. (See "PUBLIC OFFERING PRICE.")

The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any representation
to the contrary is a criminal offense.
<PAGE>

TABLE OF CONTENTS

<TABLE>
<CAPTION>
Page
----
<S> <C>
NUVEEN DEFINED PORTFOLIOS.................................................. 3
COMPOSITION OF TRUSTS...................................................... 4
PUBLIC OFFERING PRICE...................................................... 5
MARKET FOR UNITS........................................................... 8
EVALUATION OF SECURITIES AT THE INITIAL DATE OF DEPOSIT.................... 8
TAX STATUS................................................................. 9
RETIREMENT PLANS........................................................... 12
TRUST OPERATING EXPENSES................................................... 13
DISTRIBUTIONS TO UNITHOLDERS............................................... 13
ACCUMULATION PLAN.......................................................... 14
REPORTS TO UNITHOLDERS..................................................... 15
UNIT VALUE AND EVALUATION.................................................. 15
DISTRIBUTIONS OF UNITS TO THE PUBLIC....................................... 16
OWNERSHIP AND TRANSFER OF UNITS............................................ 17
REPLACEMENT OF LOST, STOLEN OR DESTROYED CERTIFICATES...................... 17
REDEMPTION................................................................. 18
PURCHASE OF UNITS BY THE SPONSOR........................................... 19
REMOVAL OF SECURITIES FROM THE TRUSTS...................................... 19
INFORMATION ABOUT THE TRUSTEE.............................................. 20
LIMITATIONS ON LIABILITIES OF SPONSOR AND TRUSTEE.......................... 20
SUCCESSOR TRUSTEES AND SPONSORS............................................ 20
INFORMATION ABOUT THE SPONSOR.............................................. 21
INFORMATION ABOUT THE EVALUATOR............................................ 22
OTHER INFORMATION.......................................................... 22
LEGAL OPINION.............................................................. 23
AUDITORS................................................................... 23
SUPPLEMENTAL INFORMATION................................................... 23
</TABLE>

2
<PAGE>

Nuveen Defined Portfolios

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

The Sponsor has deposited with the Trustee delivery statements relating to
contracts for the purchase of the securities of the companies described in the
applicable Part A of the Prospectus, together with funds represented by an
irrevocable letter of credit issued by a major commercial bank in the amount
required for their purchase (or the securities themselves). See "Schedule of
Investments" in Part A of the Prospectus, for a description of the Securities
deposited in the applicable Trust. See also, "Risk/Return Summary" and "Risk
Factors" in Part A of the Prospectus. As used herein, the term "Securities"
means the Securities (including contracts for the purchase thereof) initially
deposited in each Trust and described in the related portfolio and any
additional equity securities that may be held by a Trust.

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

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

The Sponsor may realize a profit (or sustain a loss) as of the opening of
business on the Initial Date of Deposit resulting from the difference between
the purchase prices of the Securities and the cost of such Securities to the
Trust, which is based on the evaluation of the Securities as of the opening of
business on the Initial Date of Deposit. (See "Schedule of Investments" in Part
A of the Prospectus.) The Sponsor may also be considered to have realized a
profit or to have sustained a loss, as the case may

3
<PAGE>

be, in the amount of any difference between the cost of the Securities to the
Trust (which is based on the Evaluator's determination of the aggregate value
of the underlying Securities of the Trust) on the subsequent date(s) of
deposit and the cost of such Securities to Nuveen, if applicable.

Composition of Trusts

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

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

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

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

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

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

Year 2000 Problem. Like other investment companies, financial and business
organizations and individuals around the world a Trust could be adversely
affected if the computer systems used by the Sponsor or Trustee or other
service providers to such Trust do not properly process and calculate date-
related information and data from and after January 1, 2000. This is commonly
known as the "Year 2000

4
<PAGE>

Problem." The Sponsor and Trustee are taking steps that they believe are
reasonably designed to address the Year 2000 Problem with respect to computer
systems that they use and to obtain reasonable assurances that comparable
steps are being taken by a Trust's other service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact to a Trust.

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

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

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

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

Nuveen has obtained the descriptions of the companies in Part A for each
sector from sources it deems reliable. However, Nuveen has not independently
verified the accuracy or completeness of the information provided.

Public Offering Price

The Public Offering Price of the Units is based on the aggregate underlying
value of the Securities in a Trust (generally determined by the closing sale
prices of listed Securities and the ask prices of over-the-counter traded
Securities), plus or minus cash, if any, in the Income and Capital Accounts of
the Trust, plus an initial sales charge equal to the difference between the
maximum sales charge (as set forth in Part A of the Prospectus) per Unit and
the maximum remaining deferred sales charge (as set forth in Part A of the
Prospectus) and is rounded to the nearest cent. In addition, a portion of the
Public Offering Price during the initial offering period also consists of
Securities in an amount sufficient to pay for all or a portion of the costs
incurred in establishing a Trust, including costs of preparing the
registration statement, the trust indenture and other closing documents,
registering Units with the Securities and Exchange Commission and states, the
initial audit of each Trust portfolio, the initial evaluation, legal fees, the
initial fees and expenses of the Trustee and any non-material out-of-pocket
expenses.

The Securities purchased with the portion of the Public Offering Price
intended to be used to reimburse the Sponsor for a Trust's organization costs
will be purchased in the same proportionate relationship as all the Securities
contained in a Trust. Securities will be sold to reimburse the Sponsor for the
Trust's organization costs at the earlier of six months after the Initial Date
of Deposit or the end of the initial offering period (a significantly shorter
time period than the life of the Trust). During the period ending with the
earlier of six months after the Initial Date of Deposit or the end of the
initial offering period, there may be a decrease in the value of the
Securities. To the extent the proceeds from the sale of these Securities are
insufficient to repay the Sponsor for the Trust organization costs, the
Trustee will sell additional Securities to allow the Trust to fully reimburse
the Sponsor. In that event, the

5
<PAGE>

net asset value per Unit will be reduced by the amount of additional
Securities sold. Although the dollar amount of the reimbursement due to the
Sponsor will remain fixed and will never exceed the amount per Unit set forth
for the Trusts in "Statement of Condition," this will result in a greater
effective cost per Unit to Unitholders for the reimbursement to the Sponsor.
When Securities are sold to reimburse the Sponsor for organization costs, the
Trustee will sell such Securities to an extent which will maintain the same
proportionate relationship among the Securities contained in the Trust as
existed prior to such sale. See "Risk/Return Summary--Fees and Expenses" in
Part A of the Prospectus.

Commencing on those dates set forth under "Risk/Return Summary--Fees and
Expenses" in Part A of this Prospectus, a deferred sales charge in an amount
described in Part A of the Prospectus will be assessed per Unit per applicable
month. The deferred sales charges will be paid from funds in the Capital
Account, if sufficient, or from the periodic sale of Securities. A pro rata
share of accumulated dividends, if any, in the Income Account from the
preceding Record Date to, but not including, the settlement date (normally
three business days after purchase) is added to the Public Offering Price. The
total maximum sales charge assessed to Unitholders on a per Unit basis will be
the amount set forth in "Risk/Return Summary--Fees and Expenses" in Part A of
the Prospectus. See "UNIT VALUE AND EVALUATION."

The sales charge applicable to quantity purchases is reduced on a graduated
scale as set forth in Part A of this Prospectus. For purposes of calculating
the applicable sales charge, purchasers who have indicated their intent to
purchase a specified amount of Units of any Nuveen unit investment trust in
the primary or secondary offering period by executing and delivering a letter
of intent to the Sponsor, which letter of intent must be in a form acceptable
to the Sponsor and shall have a maximum duration of thirteen months, will be
eligible to receive a reduced sales charge according to the graduated scale
provided in Part A of this Prospectus, based on the amount of intended
aggregate purchases (excluding purchases which are subject only to a deferred
sales charge) as expressed in the letter of intent. For purposes of letter of
intent calculations, units of equity products are valued at $10 per unit. Due
to administrative limitations and in order to permit adequate tracking, the
only secondary market purchases that will be permitted to be applied toward
the intended specified amount and that will receive the corresponding reduced
sales charge are those Units that are acquired through or from the Sponsor. By
establishing a letter of intent, a Unitholder agrees that the first purchase
of Units following the execution of such letter of intent will be at least 5%
of the total amount of the intended aggregate purchases expressed in such
Unitholder's letter of intent. Further, through the establishment of the
letter of intent, such Unitholder agrees that Units representing 5% of the
total amount of the intended purchases will be held in escrow by the Trustee
pending completion of these purchases. All distributions on Units held in
escrow will be credited to such Unitholder's account. If total purchases prior
to the expiration of the letter of intent period equal or exceed the amount
specified in a Unitholder's letter of intent, the Units held in escrow will be
transferred to such Unitholder's account. A Unitholder who purchases Units
during the letter of intent period in excess of the number of Units specified
in a Unitholder's letter of intent, the amount of which would cause the
Unitholder to be eligible to receive an additional sales charge reduction,
will be allowed such additional sales charge reduction on the purchase of
Units which caused the Unitholder to reach such new breakpoint level and on
all additional purchases of Units during the letter of intent period. If the
total purchases are less than the amount specified, the Unitholder involved
must pay the Sponsor an amount equal to the difference between the amounts
paid for these purchases and the amounts which would have been paid if the
higher sales charge had been applied; the Unitholder will, however, be
entitled to any reduced sales charge qualified for by reaching any lower
breakpoint level. If such Unitholder does not pay the additional amount within
20 days after written request by the Sponsor or the Unitholder's securities
representative, the Sponsor will instruct the Trustee to redeem an appropriate
number of the escrowed Units to meet the required payment. By establishing a
letter of intent, a Unitholder irrevocably appoints the Sponsor as attorney to
give instructions to redeem any or all of such Unitholder's escrowed Units,
with full power of substitution in the premises. A Unitholder or his
securities representative must notify the Sponsor whenever such Unitholder
makes a purchase of Units that he wishes to be counted towards the intended
amount.

For secondary market sales, the Public Offering Price is based on the
aggregate underlying value of the Securities in a Trust (generally determined
by the closing sale prices of listed Securities and the bid prices of over-
the-counter traded Securities), plus or minus cash, if any, in the Income and
Capital

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Accounts of a Trust, plus an initial sales charge equal to the difference
between the maximum sales charge and any remaining deferred sales charges. The
maximum sales charge for such purchases is 4.5% of the Public Offering Price.
Such investors will also be subject to any remaining deferred sales charges.

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

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

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

Unitholders of other unit investment trusts having a similar strategy as the
Trust may utilize their termination proceeds to purchase Units of the Trust
with the sales charge applicable for "Rollover Purchases" as provided in "How
to Buy and Sell Units" in Part A of the Prospectus. The dealer concession for
such purchases will be that applicable to "Rollover Purchases".

Units may be purchased with the reduced sales charge provided for "Wrap
Account Purchases" under "How to Buy and Sell Units" in Part A of the
Prospectus by (1) investors who purchase Units through registered investment
advisers, certified financial planners and registered broker-dealers who in
each case either charge periodic fees for financial planning, investment
advisory or asset management services, or provide such services in connection
with the establishment of an investment account for which a comprehensive
"wrap fee" charge is imposed, (2) bank trust departments investing funds over
which they exercise exclusive discretionary investment authority and that are
held in a fiduciary, agency, custodial or similar capacity, (3) any person who
for at least 90 days, has been an officer, director or bona fide employee of
any firm offering Units for sale to investors, (4) officers and directors of
bank holding companies that make Units available directly or through
subsidiaries or bank affiliates, (5) officers or directors and bona fide,
full-time employees of Nuveen, Nuveen Advisory Corp., Nuveen Institutional
Advisory Corp., Rittenhouse Financial Services, Inc., and The John Nuveen
Company, including in each case these individuals and their spouses, minor
children, and parents, however, purchases by parents must be made through a
registered broker-dealer and (6) any person who for at least 90 days, has been
an officer, director or bona fide employee of any vendor who provides services
to the Sponsor and who purchases Units through a registered broker-dealer
(collectively, the "Discounted Purchases"). Notwithstanding anything to the
contrary in this Prospectus, investors who purchase Units as described in this
paragraph will not receive sales charge reductions for quantity purchases.

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

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

Market for Units

During the initial public offering period, the Sponsor intends to offer to
purchase Units of each Trust at a price based upon the pro rata share per Unit
of the aggregate underlying value of the Securities in such Trust (generally
determined by the closing sale prices of listed Securities and the ask prices
of over-the-counter traded Securities). Afterward, although it is not
obligated to do so, the Sponsor may maintain a secondary market for Units of
each Trust at its own expense and continuously offer to purchase Units of each
Trust at prices, subject to change at any time, which are based upon the
aggregate underlying value of the Securities in a Trust (generally determined
by the closing sale prices of listed Securities and the bid prices of over-
the-counter traded Securities). During the period ending with the earlier of
six months after the Initial Date of Deposit or the end of the initial
offering period, the price at which the Sponsor expects to repurchase Units
(the "Sponsor's Repurchase Price") includes estimated organization costs per
Unit. After such period, the Sponsor's Repurchase Price will not include such
estimated organization costs. See "Risk/Return Summary--Fees and Expenses" in
Part A of the Prospectus. Unitholders who wish to dispose of their Units
should inquire of the Trustee or their broker as to the current Redemption
Price. Units subject to a deferred sales charge which are sold or tendered for
redemption prior to such time as the entire deferred sales charge on such
Units has been collected will be assessed the amount of the remaining deferred
sales charge at the time of sale or redemption.

In connection with its secondary market making activities, the Sponsor may
from time to time enter into secondary market joint account agreements with
other brokers and dealers. Pursuant to such an agreement, the Sponsor will
generally purchase Units from the broker or dealer at the Redemption Price (as
defined in "REDEMPTION") and will place the Units into a joint account managed
by the Sponsor; sales from the account will be made in accordance with the
then current prospectus and the Sponsor and the broker or dealer will share
profits and losses in the joint account in accordance with the terms of their
joint account agreement.

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

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

Evaluation of Securities at the Initial Date of Deposit

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

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

Tax Status

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

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

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

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

3. A Unitholder's portion of gain, if any, upon the sale or redemption of
Units or the disposition of Securities held by the Trust will generally be
considered a capital gain (except in the case of a dealer or a financial
institution). A Unitholder's portion of loss, if any, upon the sale or
redemption of Units or the disposition of Securities held by the Trust will
generally be considered a capital loss (except in the case of a dealer or a
financial institution). Unitholders should consult their tax advisors
regarding the recognition of such capital gains and losses for Federal
income tax purposes.

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<PAGE>

Deferred Sales Charge. Generally the tax basis of a Unitholder includes
sales charges, and such charges are not deductible. A portion of the sales
charge is deferred. It is possible that for Federal income tax purposes, a
portion of the deferred sales charge may be treated as interest which should
be deductible by a Unitholder subject to limitations on the deduction of
investment interest. In such case, the non-interest portion of the deferred
sales charge would be added to the Unitholder's tax basis in his or her Units.
The deferred sales charge could cause the Unitholder's Units to be considered
to be debt-financed under Section 246A of the Code which would result in a
small reduction of the dividends received deduction. In any case, the income
(or proceeds from redemption) a Unitholder must take into account for Federal
income tax purposes is not reduced by amounts deducted to pay the deferred
sales charge. Unitholders should consult their own tax advisers as to the
income tax consequences of the deferred sales charge.

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

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. Unitholders should
consult with their tax advisers with respect to the limitations on and
possible modifications to the dividends received deduction.

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

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

In addition, please note that capital gains may be recharacterized as
ordinary income in the case of certain financial transactions that are
considered "conversion transactions" effective for transactions

10
<PAGE>

entered into after April 30, 1993. Unitholders and prospective investors
should consult with their tax advisers regarding the potential effect of this
provision on their investment in Units.

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

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

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

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

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

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

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

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

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<PAGE>

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.
Unitholders and derived from dividends of foreign corporations will not be sub-
ject to U.S. withholding tax provided that less than 25 percent of the gross
income of the foreign corporation for a three-year period ending with the close
of its taxable year preceding the year of payment was 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 be-
tween the United States and a foreign country. Non-U.S. Unitholders should con-
sult their own tax advisers regarding the imposition of U.S. withholding on
distributions from the Trust.

It should be noted that payments to a Trust of dividends on Securities that
are attributable to foreign corporations may be subject to foreign withholding
taxes and Unitholders should consult their tax advisers regarding the potential
tax consequences relating to the payment of any such withholding taxes by a
Trust. Any dividends withheld as a result thereof will nevertheless be treated
as income to the Unitholders. Because under the grantor trust rules, an in-
vestor 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 for such credits.

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

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

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

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

Retirement Plans

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

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<PAGE>

Trust Operating Expenses

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

The Trustee receives for ordinary recurring services an annual fee for each
Trust as set forth in "Risk/Return Summary--Fees and Expenses" appearing in
Part A of this Prospectus. The Trustee's Fee may be periodically adjusted in
response to fluctuations in short-term interest rates (reflecting the cost to
the Trustee of advancing funds to a Trust to meet scheduled distributions). In
addition, the Sponsor's Supervisory Fee, Bookkeeping and Administration Fee,
Evaluator's Fee and the Trustee's Fee may be adjusted in accordance with the
cumulative percentage increase of the United States Department of Labor's
Consumer Price Index entitled "All Services Less Rent of Shelter" since the
establishment of the Trusts. In addition, with respect to the fees payable to
the Sponsor or an affiliate of the Sponsor for providing bookkeeping and other
administrative services, supervisory 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, in the
aggregate, rendered to all unit investment trusts of which John Nuveen & Co.
Incorporated is the Sponsor in any calendar year exceed the actual cost to the
Sponsor or its affiliates of supplying such services, in the aggregate, in
such year. The Trustee has the use of funds, if any, being held in the Income
and Capital Accounts of each Trust for future distributions, payment of
expenses and redemptions. These Accounts are non-interest bearing to
Unitholders. Pursuant to normal banking procedures, the Trustee benefits from
the use of funds held therein. Part of the Trustee's compensation for its
services to the Trusts is expected to result from such use of these funds.

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

Unless the Sponsor determines that an audit is not required, the Indenture
requires each Trust to be audited on an annual basis at the expense of the
Trust by independent public accountants selected by the Sponsor. The Trustee
shall not be required, however, to cause such an audit to be performed if its
cost to a Trust shall exceed $.05 per Unit on an annual basis. Unitholders of
a Trust covered by an audit may obtain a copy of the audited financial state-
ments upon request.

Distributions to Unitholders

The Trustee will distribute any net income received with respect to any of
the Securities in a Trust on or about the Income Distribution Dates to
Unitholders of record on the preceding Income Record

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<PAGE>

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

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

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

Within a reasonable time after a Trust is terminated, each Unitholder will,
upon surrender of his Units for redemption, receive (i) the pro rata share of
the amounts realized upon the disposition of Securities, unless he or she
elects an In-Kind Distribution as described under "REDEMPTION" and (ii) a pro
rata share of any other assets of such Trust, less expenses of such Trust.

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

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

Distribution Reinvestment. Any Unitholder may elect to have each distribu-
tion of income on his Units, other than the final liquidating distribution in
connection with the termination of a Trust, automatically reinvested in addi-
tional Units of such Trust. Each person who purchases Units of a Trust may
elect to participate in the reinvestment option by notifying the Trustee in
writing of their election. Reinvestment may not be available in all states. So
long as the election is received by the Trustee at least 10 days prior to the
Record Date for a given distribution, each subsequent distribution of income
and/or capital, as selected by the Unitholder, will be automatically applied
by the Trustee to purchase additional Units of a Trust. The remaining deferred
sales charge payments will be assessed on Units acquired pursuant to reinvest-
ment. It should be remembered that even if distributions are reinvested, they
are still treated as distributions for income tax purposes.

Accumulation Plan

The Sponsor is also the principal underwriter of several open-end mutual
funds (the "Accumulation Funds") into which Unitholders may choose to reinvest
Trust distributions. Unitholders may elect to reinvest income and capital
distributions automatically, without any sales charge. Each Accumulation

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<PAGE>

Fund has investment objectives which differ in certain respects from those of
the Trusts and may invest in Securities which would not be eligible for
deposit in the Trusts. Further information concerning the Accumulation Plan
and a list of Accumulation Funds is set forth in the Information Supplement of
this Prospectus, which may be obtained by contacting the Trustee at 800-257-
8787.

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

Reports to Unitholders

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

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

Unit Value and Evaluation

The value of a Trust is determined by the Trustee on the basis of (1) the
cash on hand in the Trust other than cash deposited in the Trust to purchase
Securities not applied to the purchase of such Securities; (2) the aggregate
value of the Securities held in the Trust, as determined by the Evaluator on
the basis of the aggregate underlying value of the Securities in the Trust
next computed; (3) dividends receivable on the Securities trading ex-dividend
as of the date of computation; and (4) all other assets of the Trust; and
deducting therefrom: (1) amounts representing any applicable taxes or
governmental charges and amounts due the Sponsor or Trustee for
indemnification or extraordinary expenses payable out of such Trust for which
no deductions had been made for the purpose of additions to the Reserve
Account; (2) any amounts owing to the Trustee for its advances; (3) an amount
representing estimated accrued expenses of the Trust, including, but not
limited to, unpaid fees and expenses of the Trustee (including legal fees) and
the Sponsor; (4) amounts representing unpaid organization costs; (5) cash held
for distribution to Unitholders of record of the Trust or for redemption of
tendered Units as of the business day prior to the evaluation being made; and
(6) other liabilities incurred by the Trust. The result of such computation is
divided by the number of Units of such Trust outstanding as of the date
thereof and rounded to the nearest cent to determine the per Unit value ("Unit
Value") of such Trust. The Trustee may determine the aggregate value of the
Securities in the Trust in the following manner: if the Securities are listed
on a securities exchange or The NASDAQ Stock Market, Inc. ("listed
Securities"), this evaluation is generally based on the closing sale price on
that exchange or that system (if a listed Security is listed on the New York
Stock Exchange ("NYSE") the closing sale price on the NYSE shall apply) or, if
there is no closing sale price on that exchange or system, at the closing bid
prices (ask prices for primary market purchases). If the Securities are not so
listed, the evaluation shall generally be based on the current bid prices (ask
prices for primary market purchases) on the over-the-counter market (unless it
is determined that these prices are inappropriate as a basis for valuation).
If current bid prices are unavailable, the evaluation is generally determined
(a) on the basis of current bid prices for comparable securities, (b) by
appraising the value of the Securities on the bid side of the market or (c) by
any combination of the above.

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<PAGE>

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

Distributions of Units to the Public

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

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

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

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

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

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

Volume incentives can be earned as a marketing allowance by Eligible Dealer
Firms who reach cumulative firm sales or sales arrangement levels of a
specified dollar amount of Nuveen unit trusts (other than any series of the
Nuveen--The Dow 5SM Portfolios and Nuveen--The Dow 10SM Portfolios) sold in
the primary or secondary market during any quarter as set forth in the table
below. Eligible Dealer Firms are dealers that are providing marketing support
for Nuveen unit trusts in the form of 1) distributing or permitting the
distribution of marketing materials and other product information, 2)
providing Nuveen representatives access to the dealer's branch offices, and 3)
generally facilitating the placement of orders by the dealer's registered
representatives such as putting Nuveen unit trusts on their order entry
screens. Eligible Dealer Firms will not include firms that solely provide
clearing services to broker/dealer firms. For purposes of determining the
applicable volume incentive rate for a given quarter, the dollar amount of all
units sold over the current and three previous quarters (the "Measuring
Period") is aggregated. The volume incentive received by the dealer firm will
equal the dollar amount of units sold during the current quarter times the
highest applicable rate for the Measuring Period. For firms that meet the
necessary volume level, volume incentives may be given on all applicable
trades originated from or by that firm.

<TABLE>
<CAPTION>
Total dollar amount sold
over Measuring Period Volume Incentive
-------------------------- --------------------------------
<S> <C>
$ 5,000,000 to $ 9,999,999 0.10% of current quarter sales
$10,000,000 to $19,999,999 0.125% of current quarter sales
$20,000,000 to $49,999,999 0.1375% of current quarter sales
$50,000,000 or more 0.15% of current quarter sales
</TABLE>

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<PAGE>

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

Firms are not entitled to receive any dealer concession or volume incentives
for any sales made to investors which qualified as Discounted Purchases (as
defined in "PUBLIC OFFERING PRICE") during the primary or secondary market.
(See "PUBLIC OFFERING PRICE.")

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

Ownership and Transfer of Units

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

Units are transferable by making a written request to the Trustee and, in
the case of Units evidenced by Certificate(s), by presenting and surrendering
such Certificate(s) to the Trustee, The Chase Manhattan Bank, at 4 New York
Plaza, New York, NY 10004-2413, properly endorsed or accompanied by a written
instrument or instruments of transfer. The Certificate(s) should be sent
registered or certified mail for the protection of the Unitholders. Each
Unitholder must sign such written request, and such Certificate(s) or transfer
instrument, exactly as his name appears on (a) the face of the Certificate(s)
representing the Units to be transferred, or (b) the Book Entry Position
Confirmation(s) relating to the Units to be transferred. Such signature(s)
must be guaranteed by a guarantor acceptable to the Trustee. In certain
instances the Trustee may require additional documents such as, but not
limited to, trust instruments, certificates of death, appointments as executor
or administrator or certificates of corporate authority. Mutilated
Certificates must be surrendered to the Trustee in order for a replacement
Certificate to be issued. Although at the date hereof no charge is made and
none is contemplated, a Unitholder may be required to pay $2.00 to the Trustee
for each Certificate reissued or transfer of Units requested and to pay any
governmental charge which may be imposed in connection therewith.

Replacement of Lost, Stolen or Destroyed Certificates

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

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<PAGE>

Redemption

Unitholders may redeem all or a portion of their Units by (1) making a
written request for such redemption (book entry Unitholders may use the
redemption form on the reverse side of their Book Entry Position Confirmation)
to the Trustee at 4 New York Plaza, New York, NY 10004-2413 (redemptions of
1,000 Units or more will require a signature guarantee), (2) in the case of
Units evidenced by a Certificate, by also tendering such Certificate to the
Trustee, duly endorsed or accompanied by proper instruments of transfer with
signatures guaranteed as explained above, or provide satisfactory indemnity
required in connection with lost, stolen or destroyed Certificates and (3)
payment of applicable governmental charges, if any. Certificates should be
sent only by registered or certified mail to minimize the possibility of their
being lost or stolen. (See "OWNERSHIP AND TRANSFER OF UNITS.") No redemption
fee will be charged. A Unitholder may authorize the Trustee to honor telephone
instructions for the redemption of Units held in book entry form. Units
represented by Certificates may not be redeemed by telephone. The proceeds of
Units redeemed by telephone will be sent by check either to the Unitholder at
the address specified on his account or to a financial institution specified
by the Unitholder for credit to the account of the Unitholder. A Unitholder
wishing to use this method of redemption must complete a Telephone Redemption
Authorization Form and furnish the Form to the Trustee. Telephone Redemption
Authorization Forms can be obtained from a Unitholder's registered
representative or by calling the Trustee. Once the completed Form is on file,
the Trustee will honor telephone redemption requests by any authorized person.
The time a telephone redemption request is received determines the "date of
tender" as discussed below. The redemption proceeds will be mailed within
three business days following the telephone redemption request. Only Units
held in the name of individuals may be redeemed by telephone; accounts
registered in broker name, or accounts of corporations or fiduciaries
(including among others, trustees, guardians, executors and administrators)
may not use the telephone redemption privilege.

On the third business day following the date of tender, the Unitholder will
be entitled to receive in cash for each Unit tendered an amount equal to the
Unit Value of such Trust determined by the Trustee, as of 4:00 p.m. eastern
time, or as of any earlier closing time on a day on which the Exchange is
scheduled in advance to close at such earlier time, on the date of tender as
defined hereafter ("Redemption Price"). During the period ending with the
earlier of six months after the Initial Date of Deposit or the end of the
initial offering period, the Redemption Price per Unit includes estimated
organization costs per Unit. After such period, the Redemption Price will not
include such estimated organization costs. See "Risk/Return Summary--Fees and
Expenses" in Part A of the Prospectus. The price received upon redemption may
be more or less than the amount paid by the Unitholder depending on the value
of the Securities on the date of tender. Units subject to a deferred sales
charge which are tendered for redemption prior to such time as the entire
deferred sales charge on such Units has been collected will be assessed the
amount of the remaining deferred sales charge at the time of redemption. In
addition, in the event of the death of a Unitholder within the one-year period
prior to redemption, any deferred sales charge remaining at the time of
redemption shall be waived. Unitholders should check with the Trustee or their
broker to determine the Redemption Price before tendering Units.

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

If so provided in Part A of the Prospectus, any Unitholder tendering 1,000
Units or more for redemption may request by written notice submitted at the
time of tender from the Trustee, in lieu of a cash redemption, a distribution
of shares of Securities in an amount and value of Securities per Unit equal to
the Redemption Price Per Unit, as determined as of the evaluation next
following tender. In-kind distributions ("In-Kind Distributions") shall be
made by the Trustee through the distribution of each of the Securities in
book-entry form to the account of the Unitholder's bank or broker/dealer at
the Depository Trust Company. An In-Kind Distribution will be reduced by
customary transfer and

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<PAGE>

registration charges. The tendering Unitholder will receive his pro rata
number of whole shares of each of the Securities comprising a portfolio and
cash from the Capital Account equal to the fractional shares to which the
tendering Unitholder is entitled. The Trustee may adjust the number of shares
of any issue of Securities included in a Unitholder's In-Kind Distribution to
facilitate the distribution of whole shares, such adjustment to be made on the
basis of the value of Securities on the date of tender. If funds in the
Capital Account are insufficient to cover the required cash distribution to
the tendering Unitholder, the Trustee may sell Securities in the manner
described below.

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

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

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

The Redemption Price per Unit during the secondary market will be determined
on the basis of the Unit Value of a Trust. After the period ending with the
earlier of six months after the Initial Date of Deposit or the end of the
initial offering period, the Redemption Price will not include estimated
organization costs. See "Risk/Return Summary--Fees and Expenses" in Part A of
the Prospectus. See "UNIT VALUE AND EVALUATION" for a more detailed discussion
of the factors included in determining Unit Value. The Redemption Price per
Unit will be assessed the amount, if any, of the remaining deferred sales
charge at the time of redemption.

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

Purchase of Units by the Sponsor

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

Removal of Securities from the Trusts

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 a 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

19
<PAGE>

instituted restraining the payment of dividends or there exists any legal
question or impediment affecting such Security, that the issuer of the 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 Security, that the issuer has defaulted on the payment on any
other of its outstanding obligations, that the price of the Security declined
to such an extent or other such credit factors exist so that in the opinion of
the Sponsor, the retention of such Securities would be detrimental to a Trust.
Except as stated in this Prospectus, the acquisition by a Trust of any
securities or other property other than the Securities is prohibited. Pursuant
to the Indenture and with limited exceptions, the Trustee may sell any
securities or other property acquired in exchange for Securities such as those
acquired in connection with a merger or other transaction. If offered such new
or exchanged securities or properties, 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. Proceeds
from the sale of Securities by the Trustee are credited to the Capital Account
of a Trust for distribution to Unitholders or to meet redemptions.

The Trustee may also sell 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 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
Securities. To the extent this is not practicable, the composition and
diversity of the 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 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 a Trust's portfolio transactions.

Information about the Trustee

The Trustee is The Chase Manhattan Bank. Its address is 4 New York Plaza, New
York, NY 10004-2413. The Trustee is subject to supervision and examination by
the Federal Deposit Insurance Corporation, the Board of Governors of the
Federal Reserve System and either the Comptroller of the Currency or state
banking authorities.

Limitations on Liabilities of Sponsor and Trustee

The Sponsor and the Trustee shall be under no liability to Unitholders for
taking any action or for refraining from any action in good faith pursuant to
the Indenture, or for errors in judgment, but shall be liable only for their
own negligence, lack of good faith or willful misconduct. The Trustee shall not
be liable for depreciation or loss incurred by reason of the sale by the
Trustee of any of the 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.

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 any 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.

Successor Trustees and Sponsors

The Trustee or any successor trustee may resign by executing an instrument of
resignation in writing and filing same with the Sponsor and mailing a copy of a
notice of resignation to all Unitholders then of record. Upon receiving such
notice, the Sponsor is required to promptly appoint a successor trustee. If the
Trustee becomes incapable of acting or is adjudged a bankrupt or insolvent, or
a receiver or other public officer shall take charge of its property or
affairs, the Sponsor may remove the Trustee and

20
<PAGE>

appoint a successor by written instrument. The resignation or removal of a
trustee and the appointment of a successor trustee shall become effective only
when the successor trustee accepts its appointment as such. Any successor
trustee shall be a corporation authorized to exercise corporate trust powers,
having capital, surplus and undivided profits of not less than $5,000,000. 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.

If upon resignation of a trustee no successor has been appointed and 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.

If the Sponsor fails to undertake any of its duties under the Indenture, and
no express provision is made for action by the Trustee in such event, the
Trustee may, in addition to its other powers under the Indenture (1) appoint a
successor sponsor or (2) terminate the Indenture and liquidate the Trusts.

Information about the Sponsor

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

A value investing approach--purchasing securities of strong companies and
communities that represent good long-term value--is the cornerstone of
Nuveen's investment philosophy. It is a careful, long-term strategy that
offers the potential for attractive returns with moderated risk. Successful
value investing begins with in-depth research and a discerning eye for
marketplace opportunity. Nuveen's team of investment professionals is backed
by the discipline, resources and expertise of a century of investment
experience, including one of the most recognized research departments in the
industry.

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

Nuveen is a subsidiary of The John Nuveen Company which, in turn, is
approximately 78% owned by the St. Paul Companies, Inc. ("St. Paul"). St. Paul
is located in St. Paul, Minnesota and is principally engaged in providing
property-liability insurance through subsidiaries. Nuveen is a member of the
National Association of Securities Dealers, Inc. and the Securities Industry
Association and has its principal offices located in Chicago (333 West Wacker
Drive). Nuveen maintains eight regional offices.

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

In advertising and sales literature, the Sponsor may compare the performance
of a given investment strategy or a Trust with that of, or reflect the
performance of: (1) the Consumer Price Index; (2) equity mutual funds or
mutual fund indices as reported by various independent services which monitor
the performance of mutual funds, or other industry or financial publications
such as Barron's, Changing Times, Forbes and Money Magazine; and/or (3) the
S&P 500 Index or other unmanaged indices and investment strategies.
Advertisements involving these indices, investments or strategies may reflect
performance over different periods of time by means of aggregate, average,
year-by-year, or other types of total return and performance figures. Any
given performance quotation or performance comparison should not be considered
as representative of the performance of the Trusts for any future period. Such
advertising may also reflect the standard deviation or beta of the index,
investment or strategy returns for any period. The calculation of standard
deviation is sometimes referred to as the "Sharpe measure" of return.

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Information about the Evaluator

The Trustee will serve as Evaluator of the Trusts. The Sponsor intends to
replace the Trustee as Evaluator during the life of the Trusts.

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 Unitholders 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
Unitholders 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

Amendment of Indenture

The Indenture may be amended by the Trustee and the Sponsor without the
consent of any of the Unitholders (1) to cure any ambiguity or to correct or
supplement any provision thereof which may be defective or inconsistent, or (2)
to make such other provisions as shall not adversely affect the Unitholders,
provided, however, that the Indenture may not be amended, without the consent of
100% of the Unitholders, to permit the deposit or acquisition of securities
either in addition to, or in substitution for any of the Securities initially
deposited in any Trust except as stated in "COMPOSITION OF TRUSTS" regarding the
creation of additional Units and the limited right of substitution of
Replacement Securities, except for the substitution of refunding securities
under certain circumstances or except as otherwise provided in this Prospectus.
The Trustee shall advise the Unitholders of any amendment requiring the consent
of Unitholders, or upon request of the Sponsor, promptly after execution
thereof.

Termination of Indenture

The Trust may be liquidated at any time by an instrument executed by the
Sponsor and consented to by 66 2/3% of the Units of the Trust then outstanding.
The Trust may also be liquidated by the Trustee when the value of such Trust,
as shown by any evaluation, is less than 20% of the total value of the
Securities deposited in the Trust as of the conclusion of the primary offering
period and may be liquidated by the Trustee in the event that Units not yet
sold aggregating more than 60% of the Units originally created are tendered for
redemption by the Sponsor. The sale of Securities from the Trust upon
termination may result in realization of a lesser amount than might otherwise
be realized if such sale were not required at such time. For this reason, among
others, the amount realized by a Unitholder upon termination may be less than
the amount of Securities originally represented by the Units held by such
Unitholder. The Indenture will terminate upon the redemption, sale or other
disposition of the last Security held thereunder, but in no event shall it
continue beyond the Mandatory Termination Date set forth under "General
Information--Termination" in Part A of this Prospectus.

Commencing on the Mandatory Termination Date, 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 Securities. Written notice
of the termination of a Trust specifying the time or times at which Unitholders
may surrender their certificates for cancellation shall be given by the Trustee
to each Unitholder at his address appearing on the registration books of such
Trust maintained by the Trustee. Unitholders not electing a distribution of
shares of Securities will receive a cash distribution from the sale of the
remaining Securities within a reasonable time after the Trust is terminated.
Regardless of the

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distribution involved, the Trustee will deduct from the funds of a Trust any
accrued costs, expenses, advances or indemnities provided by the Indenture,
including 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. Trustee will then distribute to each
Unitholder his pro rata share of the balance of the Income and Capital
Accounts.

Legal Opinion

The legality of the Units offered hereby has been passed upon by Chapman and
Cutler, 111 West Monroe Street, Chicago, Illinois 60603. Carter, Ledyard &
Milburn, 2 Wall Street, New York, New York 10005, has acted as counsel for the
Trustee with respect to the Series.

Auditors

The "Statement of Condition" and "Schedule of Investments" at the Initial
Date of Deposit included in Part A of this Prospectus have been audited by
Arthur Andersen LLP, independent public accountants, as indicated in their
report in Part A of this Prospectus, and are included herein in reliance upon
the authority of said firm as experts in giving said report.

Supplemental Information

Upon written or telephonic request to the Trustee, investors will receive at
no cost to the investor supplemental information about this Trust, which has
been filed with the Securities and Exchange Commission and is intended to
supplement information contained in Part A and Part B of this Prospectus. This
supplement includes additional general information about the Sponsor and the
Trusts. The information supplement is incorporated by reference into the
Prospectus.

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[NUVEEN LOGO]
Defined NUVEEN SECTOR PORTFOLIO
Portfolios PROSPECTUS -- PART B

March 23, 1999

Sponsor John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
Telephone: 312-917-7700

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

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

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

This Prospectus does not contain complete information about the Unit Trust
filed with the Securities and Exchange Commission in Washington, DC under the
Securities Act of 1933 and the Investment Company Act of 1940.

To obtain copies at proscribed rates--
Write: Public Reference Section of the Commission, 450 Fifth Street NW,
Washington, DC 20549-6009
Call: (800) SEC-0330
Visit: http://www.sec.gov

No person is authorized to give any information or representation about the
Trusts not contained in Parts A or B of this Prospectus or the Information Sup-
plement, and you should not rely on any other information.

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

1. Information in this Prospectus is not complete and may be changed;

2. We may not sell these securities until the registration statement
filed with the Securities and Exchange Commission is effective; and

3. This prospectus is not an offer to sell the securities of a future
series and is not soliciting an offer to buy such securities in any state
where the offer or sale is not permitted.

<PAGE>

NUVEEN UNIT TRUSTS INFORMATION SUPPLEMENT

MARCH 23, 1999

NUVEEN UNIT TRUSTS, SERIES 37

The Information Supplement provides additional information concerning the
structure and operations of a Nuveen Unit Trust not found in the prospectuses
for the Trusts. This Information Supplement is not a prospectus and does not
include all of the information that a prospective investor should consider
before investing in a Trust. This Information Supplement should be read in
conjunction with the prospectus for the Trust in which an investor is
considering investing ("Prospectus"). Copies of the Prospectus can be obtained
by calling or writing the Trustee at The Chase Manhattan Bank, 4 New York Plaza,
New York, NY 10004-2413 (800-257-8787). This Information Supplement has been
created to supplement information contained in the Prospectus.

This Information Supplement is dated March 23, 1999. Capitalized terms
have been defined in the Prospectus.

<PAGE>

TABLE OF CONTENTS

Accumulation Plan

Information About the Sponsor

Dow Jones & Company, Inc.

Risk Factors

<PAGE>

Accumulation Plan

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

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

Accumulation Funds

Mutual Funds

Nuveen Flagship Municipal Trust

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

Nuveen Flagship Multistate Trust I

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

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

Nuveen Flagship Multistate Trust II

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

Nuveen Flagship Multistate Trust III

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

Nuveen Flagship Multistate Trust IV

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

Flagship Utility Income Fund

Nuveen Investment Trust

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

Nuveen Investment Trust II

Nuveen Rittenhouse Growth Fund

Nuveen Investment Trust III

Nuveen Income Fund

Money Market Funds

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

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

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

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

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

INFORMATION ABOUT THE SPONSOR

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

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<PAGE>

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

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

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

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

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

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

DOW JONES & COMPANY, INC.

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

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

Risk Factors

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

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

Foreign Securities Risks. Certain of the 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 Securities, currency exchange rate fluctuations, exchange control
policies, and the limited liquidity and small market capitalization of such
foreign countries' securities markets. In addition, for foreign issuers that are
not subject to the reporting requirements of the Securities Exchange Act of
1934, there may be less publicly available information than is available from a
domestic issuer. Also, foreign issuers are not necessarily subject to uniform
accounting, auditing and financial reporting standards, practices and
requirements comparable to those applicable to domestic issuers. However, due to
the nature of the issuers of the Securities included in the Trust, the Sponsor
believes that adequate information will be available to allow the Sponsor to
provide portfolio surveillance.

Certain of the 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 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 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 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.

On January 1, 1999, Austria, Belgium, Finland, France, Germany, Ireland,
Italy, Luxembourg, the Netherlands, Portugal and Spain (eleven of the fifteen
member countries of the European Union ("EU")) are scheduled to establish fixed
conversion rates between their existing sovereign currencies and the euro. On
such date the euro is expected to become the official currency of these eleven
countries. As of January 1, 1999, the participating countries will no longer
control their own monetary policies by directing independent interest rates for
their currencies. Instead, the authority to direct monetary policy, including
money supply and official interest rates for the euro, will be exercised by the
new European Central Bank. The conversion of the national currencies of the
participating countries to the euro could negatively impact the market rate of
the exchange between such currencies (or the newly created euro) and the U.S.
dollar. In addition, European corporations, and other entities with significant
markets or operations in Europe (whether or not in the participating countries),
face strategic challenges as these entities adapt to a single trans-national
currency. The euro conversion may have a material impact on revenues, expenses
or income from operations; increase competition due to the increased price
transparency of EU markets; effect issuers' currency exchange rate risk and
derivatives exposure; disrupt current contracts; cause issuers to increase
spending on information technology updates required for the conversion; and
result in potential adverse tax consequences. The Sponsor is unable to predict
what impact, if any, the euro conversion will have on any of the issuers of
Securities contained in the Trust.

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

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

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

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

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

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

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

The statutory requirements applicable to and regulatory supervision of
banks, thrifts and their holding companies have increased significantly and have
undergone substantial change in recent years. To a great extent, these changes
are embodied in the Financial Institutions Reform, Recovery and Enforcement Act;
enacted in August 1989, the Federal Deposit Insurance Corporation Improvement
Act of 1991, the Resolution Trust Corporation Refinancing, Restructuring, and
Improvement Act of 1991 and the regulations promulgated under these laws. Many
of the regulations promulgated pursuant to these laws have only recently been
finalized and their impact on the business, financial condition and prospects of
Securities in the Trust's portfolio cannot be predicted with certainty. Periodic
efforts by recent Administrations to introduce legislation broadening the
ability of banks to compete with new products have not been successful, but if
enacted could lead to more failures as a result of increased competition and
added risks. Failure to enact such legislation, on the other hand, may lead to
declining earnings and an inability to compete with unregulated financial
institutions. Efforts to expand the ability of federal thrifts to branch on an
interstate basis have been initially successful through promulgation of
regulations, and legislation to liberalize interstate banking has been signed
into law. Under the legislation, banks will be able to purchase or establish
subsidiary banks in any state, one year after the legislation's enactment.
Starting in mid-1997, banks have been allowed to turn existing banks into
branches. Consolidation is likely to continue. The Securities and Exchange
Commission and the Financial Accounting Standards Board require the expanded use
of market value accounting by banks and have imposed rules requiring market
accounting for investment securities held in trading accounts or available for
sale. Adoption of additional such rules may result in increased volatility in
the reported health of the industry, and mandated regulatory intervention to
correct such problems. Additional legislative and regulatory changes may be
forthcoming. For example, the bank regulatory authorities have proposed
substantial changes to the Community Reinvestment Act and fair lending laws,
rules and regulations, and there can be no certainty as to the effect, if any,
that such changes would have on the Securities in the Trust's portfolio. In
addition, from time to time the deposit insurance system is reviewed by Congress
and federal regulators, and proposed reforms of that system could, among other
things, further restrict the ways in which deposited moneys can be used by banks
or reduce the dollar amount or number of deposits insured for any depositor.
Such reforms could reduce profitability as investment opportunities available to
bank institutions become more limited and as consumers look for savings vehicles
other than bank deposits. Banks and thrifts face significant competition from
other financial institutions such as mutual funds, credit unions, mortgage
banking companies and insurance companies, and increased competition may result
from legislative broadening of regional and national interstate banking powers
as has been recently enacted. Among other benefits, the legislation allows banks
and bank holding companies to acquire across previously prohibited state lines
and to consolidate their various bank subsidiaries into one unit. The Sponsor
makes no prediction as to what, if any, manner of bank and thrift regulatory
actions might ultimately be adopted or what ultimate effect such actions might
have on the Trust's portfolio.

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

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

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

Pharmaceutical companies are companies involved in drug development and
production services. Such companies have potential risks unique to their sector
of the healthcare field. Such companies are subject to governmental regulation
of their products and services, a factor which could have a significant and
possibly unfavorable effect on the price and availability of such products or
services. Furthermore, such companies face the risk of increasing competition
from generic drug sales, the termination of their patent protection for drug
products and the risk that technological advances will render their products or
services obsolete. The research and development costs of bringing a drug to
market are substantial and include lengthy governmental review processes, with
no guarantee that the product will ever come to market. Many of these companies
may have losses and not offer certain products for several years. Such companies
may also have persistent losses during a new product's transition from
development to production, and revenue patterns may be erratic.

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

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

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

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

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

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

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

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

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

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