RULE NO. 424(B)(3)
REGISTRATION NO. 333-89355
PROSPECTUS SUPPLEMENT No. 2
- ----------------------------
(To Prospectus dated November 22, 1999)
[GRAPHIC OMITTED]
1,000,000,000 Depositary Receipts
Biotech HOLDRsSM Trust
This prospectus supplement amends and supplements certain information contained
in the accompanying prospectus dated November 22, 1999 relating to the sale of
up to 1,000,000,000 depositary receipts by Biotech HOLDRsSM Trust.
The share amounts specified in the table on page 9 of the accompanying
prospectus shall be replaced with the following:
<TABLE>
<CAPTION>
Primary
Trading
Name of Company Ticker Share Amounts Market
--------------- ------ ------------- -------
<S> <C> <C> <C>
Amgen Inc. AMGN 46 NASDAQ
Genentech, Inc. DNA 22 NYSE
Biogen, Inc. BGEN 13 NASDAQ
Immunex Corporation(1) IMNX 14 NASDAQ
PE Corp-PE Biosystems Group PEB 18* NYSE
MedImmune, Inc.(2) MEDI 5 NASDAQ
Chiron Corporation CHIR 16 NASDAQ
Genzyme Corporation GENZ 7 NASDAQ
Gilead Sciences, Inc. GILD 4 NASDAQ
Sepracor Inc. SEPR 6* NASDAQ
IDEC Pharmaceuticals Corporation IDPH 4* NASDAQ
QLT Photo Therapeutics Inc. QLTI 5 NASDAQ
Millennium Pharmaceuticals, Inc. (3) MLNM 3 NASDAQ
BioChem Pharma Inc. BCHE 9 NASDAQ
Affymetrix, Inc. AFFX 2 NASDAQ
Human Genome Sciences, Inc. HGSI 4* NASDAQ
ICOS Corporation ICOS 4 NASDAQ
Enzon, Inc. ENZN 3 NASDAQ
Celera Genomics CRA 4* NYSE
Alkermes, Inc. ALKS 2 NASDAQ
</TABLE>
- ----------
* Reflects adjustment for previous stock split.
(1) Immunex Corporation has declared a three-for-one stock split on its common
stock, to be effected by means of a stock dividend to shareholders of
record as of March 6, 2000. The shares of common stock will begin trading
on a split-adjusted basis on March 21, 2000. At such date, the share amount
of Immunex Corporation represented by a round-lot of 100 Biotech HOLDRs
will be 42.
(2) MedImmune, Inc. has declared a three-for-one stock split on its common
stock, to be effected by means of a stock dividend to shareholders of
record as of May 18, 2000. The shares of common stock will begin trading on
a split-adjusted basis on June 5, 2000. At such date, the share amount of
MedImmune, Inc. represented by a round-lot of 100 Biotech HOLDRs will be
15.
(3) Millennium Pharmaceuticals, Inc. declared a two-for-one stock split on its
common stock, to be effected by means of a stock dividend to shareholders
of record on March 28, 2000. The shares of common stock will begin trading
on a split-adjusted basis on April 19, 2000. At such date, the share amount
of Millenium Pharmaceuticals, Inc. represented by a round-lot of 100
Biotech HOLDRs will be 6.
The stock prices in the tables set forth in Annex A of the accompanying
prospectus have not been and will not be, adjusted to account for any stock
splits.
The date of this prospectus supplement is March 2, 2000.