<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price
- --------------------------------------------------------------------------------
Semiannual Report
Growth Stock Fund
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
REPORT HIGHLIGHTS
================================================================================
GROWTH STOCK FUND
- ---------------------
* Continuing U.S. economic strength fueled stock market gains in the first
half. Overseas, stocks in Asia and Latin America improved while Europe was
hampered by a weak euro.
* The fund posted good returns for the 6- and 12-month periods ended June 30.
First half results lagged the Lipper average because of our lower exposure
to Internet stocks.
* Our portfolio is well diversified over a variety of domestic and foreign
industries that should do well even if the economy slows later this year.
* While overall stock market gains could moderate, many positive forces that
should benefit fund results are still in place.
================================================================================
FELLOW SHAREHOLDERS
================================================================================
The strength of both the U.S. economy and stock market continued through
the first half. Overseas, economies in the Far East showed signs of a modest
recovery, and Latin America withstood a currency devaluation in Brazil, the
largest market in the region. The European Union got off to a sluggish start as
European economies slowed and the euro declined significantly versus the dollar
after its January inception.
<PAGE>
================================================================================
PERFORMANCE COMPARISON
----------------------
Periods Ended 6/30/99 6 Months 12 Months
--------------------- -------- ---------
Growth Stock Fund 8.54% 18.40%
S&P 500 12.38 22.76
Lipper Growth Funds Average 11.65 18.87
================================================================================
Your fund generated a solid 8.54% return during the six months ended June
30. The fund's average annualized compound total return for the past 1-, 3-, 5-,
and 10-year periods stand at 18.40%, 25.54%, 23.92%, and 17.33%, respectively.
Six-month results lagged both the unmanaged Standard & Poor's 500 Stock Index
and the Lipper Growth Funds Average. Technology stocks were strong, particularly
Internet stocks. We were underinvested in these areas and, while we remain
focused on the long term, we did pay a short-term price. However, many of our
large technology holdings did extremely well during the period and made valuable
contributions to the fund's good absolute return. For the past 12 months, fund
performance was closely in line with the average for our peers but behind the
S&P 500, which was driven mostly by a small group of stocks within the index.
================================================================================
MARKET ENVIRONMENT
================================================================================
As was the situation throughout most of 1998, the domestic stock market
wore many faces during the past six months. Strong growth in GDP and good
corporate earnings continued to drive stock prices higher. In the first quarter
Internet stocks, in particular, soared to extremely high valuations considering
that many companies in the sector have little or no earnings. At one point, the
stock price of America Online made it the twelfth-largest U.S. company in terms
of market capitalization.
<PAGE>
Then, suddenly in April, as interest rates moved higher and global
economies showed signs of improvement, cyclical stocks whose fortunes are
closely tied to economic cycles sprang to life. The speed of the move was
somewhat surprising, since the commodities that support many of these companies'
cash flows saw little price improvement.
Rising interest rates during most of the six-month period posed a
considerable concern for investors but did not succeed in restraining returns.
At the end of June, the Federal Reserve raised the key fed funds rate a
quarter-point in a preemptive strike against potentially higher inflation down
the road. So far, the move has served to reassure investors that the Fed is
standing guard to keep the economy from overheating and inflation from
accelerating. While the rate hike did not slow the overall market, it did spur
investors to turn their attention back to the growth stocks in which your fund
invests.
================================================================================
INVESTMENT REVIEW
================================================================================
Absolute performance was strong and several large holdings were major
contributors. MICROSOFT, TYCO INTERNATIONAL, and MCI WORLDCOM continued to
advance strongly. In addition, several financial stocks including CITIGROUP
rebounded nicely, especially in the first quarter. We also were encouraged by
the performance of new additions to the portfolio. We will get into these ideas
more specifically in the next section, but in the aggregate our purchases and
sales helped recent performance.
================================================================================
<PAGE>
PORTFOLIO CHARACTERISTICS
-------------------------
Growth Stock
Domestic
As of 6/30/99 Portfolio S&P 500
------------- --------- -------
Earnings Growth Rate
Past 5 Years 17.4% 14.3%
Projected 5 Years * 15.6 13.4
Dividend Growth Rate
Past 5 Years 13.7 10.8
Projected 5 Years * 12.0 10.5
Return on Equity
Past 5 Years 22.6 22.7
Long-Term Debt as
Percent of Capital 26.5 30.8
P/E Ratio (12-month forward
projected earnings) 29.5X 27.9X
* Forecasts are based on T. Rowe Price research and are in no way
indicative of the fund's future investment returns.
================================================================================
While returns were strong for the 6- and 12-month periods, we missed the
opportunity for better performance during the most recent period because of
several factors. As mentioned, compared with competitive funds we were slightly
underinvested in technology stocks, which generated powerful gains in the first
half -- especially Internet stocks. Our problem with most Internet stocks is
that their current prices bear little relationship to fundamental valuations. We
don't believe in owning any companies simply because they are going up or
because our competitors own them. We focus on companies that will supply
consistent cash flow growth over a reasonable period, and many Internet
companies are not likely to be around over the long haul. We do believe that the
Internet is a real force to be reckoned with and that its growth is, and will
continue to be, explosive. Therefore, we will continue to be on the lookout for
attractive stocks in this area.
<PAGE>
In addition, while we trimmed many insurance holdings in 1998, our
remaining positions in property and casualty companies performed poorly in the
first half. When the pricing environment is difficult, it is tough for growth
companies in this industry to grow. ACE LIMITED, for example, which has expanded
its book value significantly over the last several years, saw its stock price
fall from 14 to 11 times earnings as near-term earnings flattened.
Third, we positioned the fund for slower growth than the economy
experienced in the first half. Several large positions such as SAFEWAY and
FREDDIE MAC did poorly in an accelerating world economy, even though their
earnings continued to grow at a good pace. Over time we expect these consistent
earners to do well as they are priced below market averages and offer much
better long-term growth potential.
Finally, our international holdings constrained results. While HUTCHISON
WHAMPOA, HSBC HOLDINGS, and MANNESMANN made positive contributions, we were hurt
by a weak euro versus the dollar as well as problems with several consistent
earnings growers. RENTOKIL GROUP, a company with a history of extraordinary
long-term growth, and Tomkins announced a slowdown in earnings.
================================================================================
[Growth Stock Fund P/E Relative to the S&P 500 P/E; shown here]
================================================================================
It is also worth noting that we eliminated NETWORK ASSOCIATES from the
portfolio. The stock contributed a great deal to 1998 performance only to give
it back in short order in the first quarter of this year. Subsequently, we lost
faith in its prospects for growth.
================================================================================
<PAGE>
PORTFOLIO MANAGEMENT
================================================================================
While we invest for the long term, we fine-tune the portfolio at times to
accommodate the pace of economic expansion. In general, since we stress
consistent earnings growers, the fund tends to do better in a modest or
decelerating economic environment. As the global economy accelerated in the
first half of the year, we added a couple of companies positioned to benefit
from the changing environment -- among them, Altera, a specialized semiconductor
company.
[Sector diversification pie chart shown here: Foreign 13%*, Technology 22%,
Consumer Nondurables 16%, Financial 15%, Consumer Services 13%, Capital
Equipment 8%, Other 9%, Reserves 4%] [* The percentage of foreign holdings is
lower on page 16, since several were classified under various industry sectors:
Based on net assets as of 6/30/99.]
We also added companies that should benefit from increased spending on
telecommunications. So far this year, the market has been excited about growth
in the Internet, cellular phone use, and data transmission. We share the
enthusiasm but are more mindful of the current prices of many stocks and,
therefore, are cautious about how much we pay for them.
Accordingly, we purchased CORNING, the leader in fiber optic cables at an
attractive stock valuation. In addition, we began to build positions selectively
in other stocks that we believe have good potential. As valuations become more
reasonable in this segment, we will continue to add to our holdings.
It is worth noting that over the long term, an allocation to international
stocks can help reduce the volatility of a domestic portfolio and offers broad
opportunities to enhance returns. During the past few years, international
markets have trailed U.S. stock returns. Recently in Europe, one of the major
culprits was the weak euro, which has fallen about 12% versus the dollar since
its inauguration in January 1999, reducing returns for U.S. investors. However,
we remain optimistic about our foreign holdings and expect better returns in
coming quarters.
<PAGE>
Finally, we continue to be consistent in our approach to stock selection.
We look for leaders in growing markets -- companies with solid managements that
generate strong cash flow -- and stay with them for the long term. Reflecting
this strategy, companies like PFIZER, Freddie Mac, and Safeway have been
rewarding investments for shareholders over time.
================================================================================
OUTLOOK
================================================================================
Investors are hoping that the Fed's rate hike at the end of June will be
enough to slow economic growth sufficiently and keep inflation in check. We
anticipate some slowing in the economy by year-end, and we also expect sluggish
international economies to continue along the path of improvement, but not to
the point of overheating.
While we believe stock market gains will moderate in the second half N
particularly if interest rates move higher -- many positive factors remain.
Productivity is strong and the Internet is a positive force in containing costs
and inflation. For the most part, foreign economies appear healthier than they
did last year, and global earnings growth is improving. Also, as can be seen
from the chart on the previous page, our average P/E relative to the S&P 500 is
at the lower end of its range for the past 25 years. Over time these factors
should benefit the fund, which holds many of the world's leading companies in a
wide variety of industries.
As always, we will continue to work diligently on your behalf in our search
for attractive ideas, both here and abroad.
Respectfully submitted,
/s/
Robert W. Smith
Chairman of the Investment Advisory Committee
July 23, 1999
================================================================================
<PAGE>
T. Rowe Price Growth Stock Fund
- -------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
TWENTY-FIVE LARGEST HOLDINGS
----------------------------
Percent of
Net Assets
6/30/99
- --------------------------------------------------------------------------
Tyco International 2.9%
- --------------------------------------------------------------------------
Freddie Mac 2.8
- --------------------------------------------------------------------------
Microsoft 2.5
- --------------------------------------------------------------------------
MCI WorldCom 2.4
- --------------------------------------------------------------------------
GE 2.4
- --------------------------------------------------------------------------
Citigroup 2.2
- --------------------------------------------------------------------------
Bristol-Myers Squibb 1.9
- --------------------------------------------------------------------------
Wells Fargo 1.7
- --------------------------------------------------------------------------
United HealthCare 1.5
- --------------------------------------------------------------------------
Safeway 1.5
- --------------------------------------------------------------------------
Waste Management 1.5
- --------------------------------------------------------------------------
Pfizer 1.4
- --------------------------------------------------------------------------
BMC Software 1.3
- --------------------------------------------------------------------------
<PAGE>
Intel 1.3
- --------------------------------------------------------------------------
Merck 1.3
- --------------------------------------------------------------------------
Wal-Mart 1.3
- --------------------------------------------------------------------------
Bank of America 1.2
- --------------------------------------------------------------------------
Cisco Systems 1.2
- --------------------------------------------------------------------------
Hewlett-Packard 1.1
- --------------------------------------------------------------------------
Warner-Lambert 1.1
- --------------------------------------------------------------------------
Fannie Mae 1.1
- --------------------------------------------------------------------------
Omnicom 1.1
- --------------------------------------------------------------------------
AlliedSignal 1.1
- --------------------------------------------------------------------------
Associates First Capital 1.1
- --------------------------------------------------------------------------
Royal Dutch Petroleum 1.1
- --------------------------------------------------------------------------
Total 40.0%
Note: Table excludes reserves.
================================================================================
<PAGE>
T. Rowe Price Growth Stock Fund
- -------------------------------
PORTFOLIO HIGHLIGHTS
- --------------------
MAJOR PORTFOLIO CHANGES
(Listed in descending order of size)
6 Months Ended 6/30/99
Ten Largest Purchases Ten Largest Sales
- --------------------- -----------------
MediaOne * First Union **
Cardinal Health * MCI WorldCom
Roche Holding McKessonHBOC **
MCI WorldCom Biogen **
Altera * Genentech ***
Corning Berkshire Hathaway
First Data * Network Associates **
Tyco International AlliedSignal
IMS Health * Novartis **
Ascend Communications *** Danaher
- --------------------------------------------------------------------------------
* Position added
** Position eliminated
*** Acquired by another company
================================================================================
<PAGE>
T. Rowe Price Growth Stock Fund
- -------------------------------
PERFORMANCE COMPARISON
----------------------
This chart shows the value of a hypothetical $10,000 investment in the fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with a broad-based average or index. An
index return does not reflect expenses, which have been deducted from the fund's
return.
[Growth Stock Fund SEC chart shown here]
AVERAGE ANNUAL COMPOUND TOTAL RETURN
------------------------------------
This table shows how the fund would have performed each year if its actual
(or cumulative) returns for the periods shown had been earned at a constant
rate.
Periods Ended 6/30/99 1 Year 3 Years 5 Years 10 Years
- --------------------- ------ ------- ------- --------
Growth Stock Fund 18.40% 25.54% 23.92% 17.33%
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
<PAGE>
T. Rowe Price Growth Stock Fund Unaudited
- ------------------------------- ---------
For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
6 Months Year
Ended Ended
6/30/99 12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
NET ASSET VALUE
Beginning of period $ 32.07 $ 28.99 $ 26.18 $ 23.35 $ 18.75 $ 20.42
- ---------------------------------------------------------------------------------------------------------------------------
Investment activities
Net investment income 0.06 0.22 0.23 0.19 0.23 0.18
Net realized and
unrealized gain (loss) 2.68 7.38 6.65 4.89 5.57 (0.01)
- ---------------------------------------------------------------------------------------------------------------------------
Total from
investment activities 2.74 7.60 6.88 5.08 5.80 0.17
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income - (0.25) (0.20) (0.19) (0.23) (0.18)
Net realized gain - (4.27) (3.87) (2.06) (0.97) (1.66)
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions - (4.52) (4.07) (2.25) (1.20) (1.84)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 34.81 $ 32.07 $ 28.99 $ 26.18 $ 23.35 $ 18.75
==Ratios/Supplemental=Data
Total return** 8.54% 27.41% 26.57% 21.70% 30.97% 0.89%
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 0.75%+ 0.74% 0.75% 0.77% 0.80% 0.81%
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income to average
net assets 0.37%+ 0.67% 0.75% 0.74% 1.09% 0.91%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 53.5%+ 54.8% 40.9% 49.0% 42.5% 54.0%
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in millions) $ 5,254 $ 5,041 $ 3,988 $ 3,431 $ 2,762 $ 2,068
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
** Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
+ Annualized
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Growth Stock Fund
- -------------------------------
Unaudited June 30, 1999
PORTFOLIO OF INVESTMENTS
- ------------------------
Shares Value
In thousands
COMMON STOCKS 96.2%
FINANCIAL 17.1%
Bank and Trust 4.5%
Bank of America 860,625 $ 63,095
- -------------------------------------------------------------------------------
Bank of New York 1,530,000 56,132
- -------------------------------------------------------------------------------
Mellon Bank 700,000 25,462
- -------------------------------------------------------------------------------
Wells Fargo 2,130,000 91,057
- -------------------------------------------------------------------------------
235,746
- -------------------------------------------------------------------------------
Insurance 3.0%
ACE Limited 1,525,000 43,081
- -------------------------------------------------------------------------------
Aetna 485,000 43,377
- -------------------------------------------------------------------------------
PartnerRe Holdings 595,409 22,254
- -------------------------------------------------------------------------------
Travelers Property Casualty (Class A) 350,000 13,694
- -------------------------------------------------------------------------------
UNUM 600,000 32,850
- -------------------------------------------------------------------------------
155,256
- -------------------------------------------------------------------------------
Financial Services 9.6%
AMBAC 300,000 17,137
- -------------------------------------------------------------------------------
<PAGE>
American Express 190,000 24,724
- -------------------------------------------------------------------------------
Associates First Capital (Class A) 1,310,800 58,085
- -------------------------------------------------------------------------------
Citigroup 2,471,300 117,387
- -------------------------------------------------------------------------------
Compass Group (GBP) * 2,000,000 19,843
- -------------------------------------------------------------------------------
Fairfax Financial (CAD) * 130,400 34,980
- -------------------------------------------------------------------------------
Fannie Mae 870,400 59,514
- -------------------------------------------------------------------------------
Freddie Mac 2,505,000 145,290
- -------------------------------------------------------------------------------
Goldman Sachs Group * 96,000 6,936
- -------------------------------------------------------------------------------
Morgan Stanley Dean Witter 210,000 21,525
- -------------------------------------------------------------------------------
505,421
- -------------------------------------------------------------------------------
Total Financial 896,423
UTILITIES==0.5%
Telephone 0.5%
SBC Communications 425,000 24,650
- -------------------------------------------------------------------------------
Total Utilities 24,650
CONSUMER=NONDURABLES==16.6%
Beverages 1.2%
Coca-Cola 300,000 $ 18,750
- -------------------------------------------------------------------------------
PepsiCo 1,151,300 44,541
- -------------------------------------------------------------------------------
63,291
- -------------------------------------------------------------------------------
<PAGE>
Food Processing 0.4%
Sara Lee 860,000 19,511
- -------------------------------------------------------------------------------
19,511
- -------------------------------------------------------------------------------
Hospital Supplies/Hospital Management 2.2%
HealthSouth * 1,007,600 15,051
- -------------------------------------------------------------------------------
United HealthCare 1,237,400 77,492
- -------------------------------------------------------------------------------
Wellpoint Health Networks * 290,000 24,614
- -------------------------------------------------------------------------------
117,157
- -------------------------------------------------------------------------------
Biotechnology 0.3%
Amgen 230,000 13,994
- -------------------------------------------------------------------------------
13,994
- -------------------------------------------------------------------------------
Pharmaceuticals 9.3%
American Home Products 650,000 37,375
- -------------------------------------------------------------------------------
Bristol-Myers Squibb 1,409,600 99,289
- -------------------------------------------------------------------------------
Eli Lilly 540,000 38,677
- -------------------------------------------------------------------------------
Johnson & Johnson 355,000 34,790
- -------------------------------------------------------------------------------
Merck 920,000 68,080
- -------------------------------------------------------------------------------
Pfizer 685,000 75,179
- -------------------------------------------------------------------------------
Roche Holdings (CHF) 3,665 37,661
- -------------------------------------------------------------------------------
Schering-Plough 760,000 40,280
- -------------------------------------------------------------------------------
Warner-Lambert 860,000 59,662
- -------------------------------------------------------------------------------
490,993
- -------------------------------------------------------------------------------
<PAGE>
Miscellaneous Consumer Products 3.2%
Colgate-Palmolive 225,000 22,219
- -------------------------------------------------------------------------------
Corning 635,100 44,536
- -------------------------------------------------------------------------------
Gillette 310,000 12,710
- -------------------------------------------------------------------------------
Hasbro 300,000 8,381
- -------------------------------------------------------------------------------
NIKE (Class B) 380,000 24,059
- -------------------------------------------------------------------------------
Philip Morris 1,225,900 49,266
- -------------------------------------------------------------------------------
Procter & Gamble 50,000 4,463
- -------------------------------------------------------------------------------
165,634
- -------------------------------------------------------------------------------
Total Consumer Nondurables 870,580
CONSUMER=SERVICES==12.8%
Restaurants 0.4%
McDonald's 500,000 $ 20,656
- -------------------------------------------------------------------------------
20,656
- -------------------------------------------------------------------------------
General Merchandisers 2.4%
Kroger * 1,699,400 47,477
- -------------------------------------------------------------------------------
Safeway * 1,560,000 77,220
- -------------------------------------------------------------------------------
124,697
- -------------------------------------------------------------------------------
<PAGE>
Specialty Merchandisers 3.6%
CVS 822,100 41,722
- -------------------------------------------------------------------------------
Home Depot 800,000 51,550
- -------------------------------------------------------------------------------
Saks * 600,000 17,325
- -------------------------------------------------------------------------------
Tag Heuer ADR 1,060,600 11,004
- -------------------------------------------------------------------------------
Wal-Mart 1,410,000 68,032
- -------------------------------------------------------------------------------
189,633
- -------------------------------------------------------------------------------
Health Care Services 0.6%
IMS Health 1,000,000 31,250
- -------------------------------------------------------------------------------
31,250
- -------------------------------------------------------------------------------
Entertainment and Leisure 1.5%
Carnival (Class A) 262,500 12,731
- -------------------------------------------------------------------------------
Disney 250,000 7,703
- -------------------------------------------------------------------------------
Mirage Resorts * 1,143,200 19,149
- -------------------------------------------------------------------------------
MediaOne Group * 530,000 39,419
- -------------------------------------------------------------------------------
79,002
- -------------------------------------------------------------------------------
Media and Communications 4.3%
CBS * 1,250,000 54,297
- -------------------------------------------------------------------------------
Clear Channel Communications * 469,100 32,339
- -------------------------------------------------------------------------------
Fox Entertainment Group (Class A) * 1,274,500 34,332
- -------------------------------------------------------------------------------
<PAGE>
Infinity Broadcasting (Class A) * 1,105,700 32,894
- -------------------------------------------------------------------------------
Time Warner * 600,000 44,100
- -------------------------------------------------------------------------------
Tribune 324,400 28,263
- -------------------------------------------------------------------------------
226,225
- -------------------------------------------------------------------------------
Total Consumer Services 671,463
CONSUMER=CYCLICALS==2.0%
Building and Real Estate 2.0%
Crescent Real Estate Equities, REIT 850,000 20,187
- -------------------------------------------------------------------------------
Masco 1,150,000 $ 33,206
- -------------------------------------------------------------------------------
Security Cap US Realty * 482,500 9,168
- -------------------------------------------------------------------------------
Security Cap US Realty (Class A) * 857,500 16,293
- -------------------------------------------------------------------------------
Starwood Hotels & Resorts, REIT 903,200 27,604
- -------------------------------------------------------------------------------
Total Consumer Cyclicals 106,458
ELECTRONIC=TECHNOLOGY==1.1%
Networking 1.1%
Cisco Systems * 940,700 60,587
- -------------------------------------------------------------------------------
Total Electronic Technology 60,587
<PAGE>
TECHNOLOGY==18.4%
Electronic Components 4.0%
Altera * 835,000 30,712
- -------------------------------------------------------------------------------
Intel 1,170,000 69,579
- -------------------------------------------------------------------------------
Maxim Integrated Products * 851,400 56,618
- -------------------------------------------------------------------------------
Motorola 150,000 14,213
- -------------------------------------------------------------------------------
Texas Instruments 282,200 40,919
- -------------------------------------------------------------------------------
212,041
- -------------------------------------------------------------------------------
Electronic Systems 3.0%
Dell Computer * 870,000 32,163
- -------------------------------------------------------------------------------
EMC * 470,000 25,850
- -------------------------------------------------------------------------------
Hewlett-Packard 595,000 59,797
- -------------------------------------------------------------------------------
Solectron * 560,000 37,345
- -------------------------------------------------------------------------------
155,155
- -------------------------------------------------------------------------------
Telecommunications 3.5%
Lucent Technologies 825,000 55,636
- -------------------------------------------------------------------------------
MCI WorldCom * 1,491,950 128,354
- -------------------------------------------------------------------------------
183,990
- -------------------------------------------------------------------------------
Computer Services 2.4%
America Online * 330,000 36,465
- -------------------------------------------------------------------------------
<PAGE>
Automatic Data Processing 900,000 39,600
- -------------------------------------------------------------------------------
First Data 700,000 34,256
- -------------------------------------------------------------------------------
Gartner Group (Class A) * 829,700 17,009
- -------------------------------------------------------------------------------
127,330
- -------------------------------------------------------------------------------
Computer Software 5.5%
BMC Software * 1,293,100 $ 69,787
- -------------------------------------------------------------------------------
Citrix Systems * 180,000 10,142
- -------------------------------------------------------------------------------
Compuware * 1,000,000 31,781
- -------------------------------------------------------------------------------
Microsoft * 1,460,000 131,583
- -------------------------------------------------------------------------------
Parametric Technology * 2,164,000 30,093
- -------------------------------------------------------------------------------
Sterling Commerce * 442,900 16,166
- -------------------------------------------------------------------------------
289,552
- -------------------------------------------------------------------------------
Total Technology 968,068
CAPITAL=EQUIPMENT==7.9%
Electrical Equipment 3.6%
AlliedSignal 933,600 58,817
- -------------------------------------------------------------------------------
GE 1,130,000 127,690
- -------------------------------------------------------------------------------
186,507
- -------------------------------------------------------------------------------
Capital Equipment 2.9%
Tyco International 1,602,450 151,832
- -------------------------------------------------------------------------------
151,832
- -------------------------------------------------------------------------------
<PAGE>
Machinery 1.4%
Danaher 750,000 43,594
- -------------------------------------------------------------------------------
Teleflex 717,800 31,179
- -------------------------------------------------------------------------------
74,773
- -------------------------------------------------------------------------------
Total Capital Equipment 413,112
BUSINESS=SERVICES=AND TRANSPORTATION 4.0%
Distribution Services 0.7%
Cardinal Health 560,000 35,910
- -------------------------------------------------------------------------------
35,910
- -------------------------------------------------------------------------------
Miscellaneous Business Services 3.3%
Mutual Risk Management 1,150,332 38,393
- -------------------------------------------------------------------------------
Omnicom 740,000 59,200
- -------------------------------------------------------------------------------
Waste Management 1,435,000 77,131
- -------------------------------------------------------------------------------
174,724
- -------------------------------------------------------------------------------
Total Business Services and Transportation 210,634
- -------------------------------------------------------------------------------
ENERGY==3.4%
Energy Services 0.7%
Halliburton 800,000 $ 36,200
- -------------------------------------------------------------------------------
36,200
- -------------------------------------------------------------------------------
Integrated Petroleum - International 2.7%
Chevron 345,000 32,840
<PAGE>
- -------------------------------------------------------------------------------
Mobil 540,000 53,460
- -------------------------------------------------------------------------------
Royal Dutch Petroleum ADR 945,000 56,936
- -------------------------------------------------------------------------------
143,236
- -------------------------------------------------------------------------------
Total Energy 179,436
- -------------------------------------------------------------------------------
PROCESS=INDUSTRIES==0.4%
Paper and Paper Products 0.4%
Kimberly-Clark 400,000 22,800
- -------------------------------------------------------------------------------
Total Process Industries 22,800
- -------------------------------------------------------------------------------
MISCELLANEOUS==5.6%
Conglomerates 1.0%
Berkshire Hathaway (Class A) * 750 51,675
- -------------------------------------------------------------------------------
51,675
- -------------------------------------------------------------------------------
Other Miscellaneous Common Stocks 4.6% 243,119
- -------------------------------------------------------------------------------
Total Miscellaneous 294,794
- -------------------------------------------------------------------------------
MISCELLANEOUS=FOREIGN==6.4%
Europe 5.3%
Gehe (EUR) 117,600 5,407
- -------------------------------------------------------------------------------
Getronics (EUR) 381,644 14,674
- -------------------------------------------------------------------------------
Mannesmann (EUR) * 230,000 34,308
- -------------------------------------------------------------------------------
<PAGE>
Rentokil Group (GBP) 4,296,800 16,661
- -------------------------------------------------------------------------------
Telebras ADR 394,300 35,561
- -------------------------------------------------------------------------------
Telecom Italia (EUR) 2,980,000 30,965
- -------------------------------------------------------------------------------
Tomkins (GBP) 8,594,000 37,252
- -------------------------------------------------------------------------------
UBS (CHF) 30,000 8,951
- -------------------------------------------------------------------------------
VNU (EUR) 700,000 27,962
- -------------------------------------------------------------------------------
Vodafone ADR 227,500 44,818
- -------------------------------------------------------------------------------
Wolters Kluwer (EUR) * 596,204 $ 23,723
- -------------------------------------------------------------------------------
280,282
- -------------------------------------------------------------------------------
Far East 1.1%
HSBC Holdings (HKD) 375,600 13,700
- -------------------------------------------------------------------------------
Hutchison Whampoa (HKD) 4,649,600 42,100
- -------------------------------------------------------------------------------
55,800
- -------------------------------------------------------------------------------
Total Miscellaneous Foreign 336,082
Total Common Stocks (Cost $3,080,604) 5,055,087
SHORT-TERM=INVESTMENTS==5.0%
Money Market Fund 5.0%
Reserve Investment Fund, 5.05% + 259,425,771 259,426
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $259,426) 259,426
=Total=Investments=in=Securities===============================================
101.2% of Net Assets (Cost $3,340,030) $ 5,314,513
<PAGE>
Other Assets Less Liabilities (60,976)
NET ASSETS $ 5,253,537
- --------------------------------------------------------------------------------
# Seven-day yield
+ Affiliated company
* Non-income producing
ADR American Depository Receipt
REIT Real Estate Investment Trust
CAD Canadian dollar
CHF Swiss franc
EUR Euro
GBP British sterling
HKD Hong Kong dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Growth Stock Fund
- -------------------------------
Unaudited June 30, 1999
STATEMENT OF ASSETS AND LIABILITIES
- -----------------------------------
In thousands
Assets
Investments in securities, at value
Affiliated companies (cost $259,426) $ 259,426
Other companies (cost $3,080,604) 5,055,087
- -----------------------------------------------------------------------------
Total investments in securities 5,314,513
Other assets 62,387
- -----------------------------------------------------------------------------
Total assets 5,376,900
<PAGE>
==Liabilities================================================================
Total liabilities 123,363
NET ASSETS $ 5,253,537
- --------------------------------------------------------------------------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 9,098
Accumulated net realized gain/loss - net of distributions 666,220
Net unrealized gain (loss) 1,974,460
Paid-in-capital applicable to 150,929,091 shares of
$1.00 par value capital stock outstanding;
200,000,000 shares authorized 2,603,759
NET ASSETS $ 5,253,537
NET ASSET VALUE PER SHARE $ 34.81
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Growth Stock Fund
- -------------------------------
Unaudited
STATEMENT OF OPERATIONS
- ----------------------- In thousands
6 Months
Ended
6/30/99
==Investment=Income============================================================
Income
Dividend $ 21,986
Interest (including $6,096 from affiliated companies) 6,190
- -------------------------------------------------------------------------------
Total income 28,176
- -------------------------------------------------------------------------------
Expenses
Investment management 14,380
Shareholder servicing 4,054
Custody and accounting 193
Prospectus and shareholder reports 181
Legal and audit 48
Registration 36
Directors 9
Miscellaneous 22
- -------------------------------------------------------------------------------
Total expenses 18,923
Expenses paid indirectly (2)
- -------------------------------------------------------------------------------
Net expenses 18,921
- -------------------------------------------------------------------------------
Net investment income 9,255
- -------------------------------------------------------------------------------
==Realized=and=Unrealized=Gain=(Loss)
Net realized gain (loss)
Securities 486,348
Foreign currency transactions (587)
- -------------------------------------------------------------------------------
<PAGE>
Net realized gain (loss) 485,761
- -------------------------------------------------------------------------------
Change in net unrealized gain or loss
Securities (73,257)
Other assets and liabilities
denominated in foreign currencies (47)
- -------------------------------------------------------------------------------
Change in net unrealized gain or loss (73,304)
- -------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 412,457
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 421,712
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Growth Stock Fund
- -------------------------------
Unaudited
STATEMENT OF CHANGES IN NET ASSETS
---------------------------------- In thousands
6 Months Year
Ended Ended
6/30/99 12/31/98
------- --------
Increase=(Decrease)=in=Net=Assets
Operations
Net investment income $ 9,255 $ 29,789
Net realized gain (loss) 485,761 632,067
Change in net unrealized gain or loss (73,304) 429,354
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 421,712 1,091,210
- -------------------------------------------------------------------------------
Distributions to shareholders
Net investment income - (34,624)
Net realized gain - (590,994)
- -------------------------------------------------------------------------------
<PAGE>
Decrease in net assets from distributions - (625,618)
- -------------------------------------------------------------------------------
Capital share transactions*
Shares sold 331,709 685,694
Distributions reinvested - 590,388
Shares redeemed (541,132) (688,824)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (209,423) 587,258
- -------------------------------------------------------------------------------
Net=Assets
Increase (decrease) during period 212,289 1,052,850
Beginning of period 5,041,248 3,988,398
- -------------------------------------------------------------------------------
End of period $5,253,537 $5,041,248
*Share information
Shares sold 10,124 21,358
Distributions reinvested - 19,818
Shares redeemed (16,392) (21,552)
- -------------------------------------------------------------------------------
Increase (decrease) in shares outstanding (6,268) 19,624
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Growth Stock Fund
- -------------------------------
Unaudited June 30, 1999
NOTES TO FINANCIAL STATEMENTS
- -----------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
================================================================================
T. Rowe Price Growth Stock Fund, Inc. (the fund) is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company and commenced operations on January 1, 1950.
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company industry;
these principles may require the use of estimates by fund management.
Valuation Equity securities listed or regularly traded on a securities
exchange are valued at the last quoted sales price on the day the valuations are
made. A security which is listed or traded on more than one exchange is valued
at the quotation on the exchange deter mined to be the primary market for such
security. Listed securities not traded on a particular day and securities
regularly traded in the over-the-counter market are valued at the mean of the
latest bid and asked prices. Other equity securities are valued at a price
within the limits of the latest bid and asked prices deemed by the Board of
Directors, or by persons delegated by the Board, best to reflect fair value.
Investments in mutual funds are valued at closing net asset value per share
of the mutual fund on the day of valuation.
For purposes of determining the fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of such
currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
<PAGE>
Affiliated Companies As defined by the Investment Company Act of 1940, an
affiliated company is one in which the fund owns at least 5% of the outstanding
voting securities.
Currency Translation Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated into
U.S. dollars at the prevailing exchange rate on the dates of such transactions.
The effect of changes in foreign exchange rates on realized and unrealized
security gains and losses is reflected as a component of such gains and losses.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on the identified cost basis. Dividend income and distributions to
shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from those determined in accordance with generally
accepted accounting principles. Expenses paid indirectly reflect credits earned
on daily, uninvested cash balances at the custodian, used to reduce the fund's
custody charges.
================================================================================
NOTE 2 - INVESTMENT TRANSACTIONS
================================================================================
Purchases and sales of portfolio securities, other than short-term
securities, aggregated $1,298,172,000 and $1,449,395,000, respectively, for the
six months ended June 30, 1999.
================================================================================
<PAGE>
NOTE 3 - FEDERAL INCOME TAXES
================================================================================
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of its
taxable income.
At June 30, 1999, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$3,340,030,000. Net unrealized gain aggregated $1,974,483,000 at period end, of
which $2,036,537,000 related to appreciated investments and $62,054,000 to
depreciated investments.
================================================================================
NOTE 4 - RELATED PARTY TRANSACTIONS
================================================================================
The investment management agreement between the fund and the manager
provides for an annual investment management fee, of which $2,397,000 was
payable at June 30, 1999. The fee is computed daily and paid monthly, and
consists of an individual fund fee equal to 0.25% of average daily net assets
and a group fee. The group fee is based on the combined assets of certain mutual
funds sponsored by the manager or Rowe Price-Fleming International, Inc. (the
group). The group fee rate ranges from 0.48% for the first $1 billion of assets
to 0.30% for assets in excess of $80 billion. At June 30, 1999, and for the six
months then ended, the effective annual group fee rate was 0.32%. The fund pays
a pro-rata share of the group fee based on the ratio of its net assets to those
of the group.
In addition, the fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which the fund receives
certain other services. The manager computes the daily share price and maintains
the financial records of the fund. T. Rowe Price Services, Inc. is the fund's
transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. T. Rowe Price Retirement Plan Services,
Inc. provides subaccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $3,072,000 for the six months
ended June 30, 1999, of which $563,000 was payable at period-end.
<PAGE>
Additionally, the fund is one of several T. Rowe Price-sponsored mutual
funds (underlying funds) in which the T. Rowe Price Spectrum Funds (Spectrum)
may invest. Spectrum does not invest in the underlying funds for the purpose of
exercising management or control. Expenses associated with the operation of
Spectrum are borne by each underlying fund to the extent of estimated savings to
it and in proportion to the average daily value of its shares owned by Spectrum,
pursuant to special servicing agreements between and among Spectrum, the
underlying funds, T. Rowe Price, and, in the case of T. Rowe Price Spectrum
International, Rowe Price-Fleming International. Spectrum Growth Fund held
approximately 6.2% of the outstanding shares of the fund at June 30, 1999. For
the six months then ended, the fund was allocated $405,000 of Spectrum expenses,
$99,000 of which was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve Funds
are offered as cash management options only to mutual funds and other accounts
managed by T. Rowe Price and its affiliates and are not available to the public.
The Reserve Funds pay no investment management fees. Distributions from the
Reserve Funds to the fund for the six months ended June 30, 1999, totaled
$6,096,000 and are reflected as interest income in the accompanying Statement of
Operations.
During the six months ended June 30, 1999, the fund, in the ordinary course
of business, placed security purchase and sale orders aggregating $12,092,000
with certain affiliates of the manager and paid commissions of $11,000 related
thereto.
================================================================================
<PAGE>
T. Rowe Price Shareholder Services
- ----------------------------------
INVESTMENT SERVICES AND INFORMATION
-----------------------------------
KNOWLEDGEABLE SERVICE REPRESENTATIVES
BY PHONE Shareholder service representatives are available from 8 a.m.
to 10 p.m. ET Monday through Friday and from 8:30 a.m. to 5 p.m. ET on
weekends. Call 1-800-225-5132 to speak directly with a representative
who will be able to assist you with your accounts.
IN PERSON Visit one of our investor center locations to meet with a
representative who will be able to assist you with your accounts. You
can also drop off applications or obtain prospectuses and other
literature at these centers.
AUTOMATED 24-HOUR SERVICES
--------------------------
TELE*ACCESS [Registration Mark] Call 1-800-638-2587 to obtain
information such as account balance, date and amount of your last
transaction, latest dividend payment, fund prices, and yields.
Additionally, you have the ability to request prospectuses,
statements, and account and tax forms; to reorder checks; and to
initiate purchase, redemption, and exchange orders for identically
registered accounts.
INTERNET. T. ROWE PRICE WEB SITE: WWW.TROWEPRICE.COM All the
information and services available on Tele*Access are available on our
Web site, including transactions in your fund and brokerage accounts
(with preauthorized access).
ACCOUNT SERVICES
----------------
CHECKING Write checks for $500 or more on any money market and most
bond fund accounts (except the High Yield and Emerging Markets Bond
Funds).
<PAGE>
AUTOMATIC INVESTING Build your account over time by investing directly
from your bank account or paycheck with Automatic Asset Builder.
Additionally, Automatic Exchange enables you to set up systematic
investments from one fund account into another, such as from a money
fund into a stock fund. A $50 minimum makes it easy to get started.
T. Rowe Price Shareholder Services; continued
AUTOMATIC WITHDRAWAL If you need money from your fund account on a
regular basis, you can establish scheduled, automatic redemptions.
DIVIDEND AND CAPITAL GAINS PAYMENT OPTIONS Reinvest all or some of
your distributions, or take them in cash. We give you maximum
flexibility and convenience.
BROKERAGE SERVICES*
-------------------
INVESTMENTS AVAILABLE You can trade stocks, bonds, options, precious
metals, and other securities at a savings over full-service commission
rates.**
TO OPEN AN ACCOUNT Call a shareholder service representative for more
information. Investment Information
INVESTMNET INFORMATION
----------------------
COMBINED STATEMENT A comprehensive overview of your T. Rowe Price
accounts is provided. The summary page gives you earnings by tax
category, provides total portfolio value, and lists your investments
by type. Detail pages itemize account transactions.
SHAREHOLDER REPORTS Portfolio managers review the performance of the
funds in plain language and discuss T. Rowe Price's economic outlook.
T. ROWE PRICE REPORT This is a quarterly newsletter with relevant
articles on market trends, personal financial planning, and T. Rowe
Price's economic perspective.
<PAGE>
PERFORMANCE UPDATE This quarterly report reviews recent market develop
ments and provides comprehensive performance information for every T.
Rowe Price fund.
INSIGHTS These are reports on mutual fund tax issues, investment
strategies, investment fundamentals, and financial markets.
DETAILED INVESTMENT GUIDES Our Asset Mix Worksheet, College Planning
Kit, Diversifying Overseas: A Guide to International Investing,
Retirees Financial Guide, and Retirement Planning Kit (also available
on disk or CD-ROM for PC use) can help you determine and reach your
investment goals.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment
Services, Inc., Member NASD/SIPC.
** Based on a January 1999 survey for representative-assisted stock
trades. Services vary by firm, and commissions may vary depending
on size of order.
================================================================================
T. Rowe Price Mutual Funds
- --------------------------
STOCK FUNDS
- ----------------------------------------
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
<PAGE>
Mid-Cap Value
New America Growth
New Era
New Horizons*
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value
Spectrum Growth
Total Equity Market Index
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Growth & Income
International Stock
Japan
Latin America
New Asia
Spectrum International
BOND FUNDS
- ----------------------------------------
Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Intermediate Tax-Free**
Georgia Tax-Free Bond
Maryland Short-Term
Tax-Free Bond
Maryland Tax-Free Bond
<PAGE>
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Intermediate Bond***
Tax-Free Short-Intermediate
Virginia Short-Term
Tax-Free Bond
Virginia Tax-Free Bond
- ----------------------------------------
International/Global
Emerging Markets Bond
Global Bond
International Bond
MONEY MARKET FUNDS +
- ----------------------------------------
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal
Money Market
Tax-Exempt Money
BLENDED ASSET FUNDS
- ----------------------------------------
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. ROWE PRICE NO-LOAD
VARIABLE ANNUITY
- ----------------------------------------
<PAGE>
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Closed to new investors.
** Formerly named Florida Insured Intermediate Tax-Free.
*** Formerly named Tax-Free Insured Intermediate Bond.
+ Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of
your investment at $1.00 per share, it is possible to lose money by
investing in the funds.
Please call for a prospectus. Read it carefully before investing.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by Security
Benefit Life Insurance Company. In New York, it [#FSB201(11-96)] is issued by
First Security Benefit Life Insurance Company of New York, White Plains, NY. T.
Rowe Price refers to the underlying portfolios' investment managers and the
distributors, T. Rowe Price Investment Services, Inc.; T. Rowe Price Insurance
Agency, Inc.; and T. Rowe Price Insurance Agency of Texas, Inc. The Security
Benefit Group of Companies and the T. Rowe Price companies are not affiliated.
The variable annuity may not be available in all states. The contract has
limitations. Call a representative for costs and complete details of the
coverage.
===========================================================================
<PAGE>
T. Rowe Price Retirement Plans and Resources
RETIREMENT PLANS AND RESOURCES
------------------------------
We recognize that saving for retirement is the number one
investment goal for most Americans. We can help you meet your
retirement needs, whether you are starting an IRA or designing a
retirement program for your employees. T. Rowe Price offers an
assortment of retirement plans for individuals, the
self-employed, small businesses, corporations, and nonprofit
organizations. We provide recordkeeping, communications, and
investment management services, as well as a variety of
educational materials, self-help planning guides, and software
tools to help you choose and implement a retirement plan
appropriate for you. For information or to request literature,
call us at 1-800-638-5660.
IRAs AND QUALIFIED PLANS
------------------------
Traditional IRA
Roth IRA
Rollover IRA
SEP-IRA
SIMPLE IRA
Profit Sharing
Money Purchase Pension
"Paired" Plans (Money Purchase Pension and Profit Sharing Plans)
401(k)
403(b)
457 Deferred Compensation
<PAGE>
RETIREMENT RESOURCES AT T. ROWE PRICE
-------------------------------------
PLANNING AND INFORMATIONAL GUIDES
---------------------------------
Minimum Required Distributions Guide
Retirement Planning Kit
Retirees Financial Guide
Tax Considerations for Investors
INVESTMENT KITS
---------------
The IRA Investing Kit
Roth IRA Conversion Kit
Rollover IRA Kit
The T. Rowe Price SIMPLE IRA Plan Kit
The T. Rowe Price SEP-IRA Plan
The Simplified Keogh Plan [Registration Mark] From T. Rowe Price
The T. Rowe Price 401(k) Century Plan [Registration Mark] (for small
businesses)
Money Purchase Pension/Profit Sharing Plan Kit
Investing for Retirement in Your 403(b) Account
The T. Rowe Price No-Load Variable Annuity Information Kit
INSIGHTS REPORTS
----------------
The Challenge of Preparing for Retirement
Financial Planning After Retirement
The Roth IRA: A Review
<PAGE>
SOFTWARE PACKAGES
-----------------
T. ROWE PRICE RETIREMENT PLANNING ANALYZER [TM] CD-ROM or
diskette $19.95. To order, please call
1-800-541-5760. Also available
on the Internet for $9.95.
T. ROWE PRICE VARIABLE ANNUITY ANALYZER [TM] CD-ROM or diskette,
free. To order, please call 1-800-469-5304.
Many of these resources are also available for viewing or
ordering on the Internet at www.troweprice.com.
===========================================================================
T. Rowe Price Insights Reports
- ------------------------------
THE FUNDAMENTALS OF INVESTING
Whether you are unsure how to get started or are saving for a
specific goal, such as retirement or college, the T. Rowe Price
Insights series can help you make informed investment decisions.
These reports, written in plain English about fundamental
investment topics, can be useful at every stage of your
investment journey. They cover a range of topics, from the basic,
such as getting started with mutual funds, to the more advanced,
such as managing risk through diversification or buying
individual securities through a broker. To request one or more
Insights, call us at 1-800-638-5660.
<PAGE>
INSIGHTS REPORTS
----------------
GENERAL INFORMATION
The ABCs of Y2K
The ABCs of Giving
Back to Basics: The ABCs of Investing
The Challenge of Preparing for Retirement
Financial Planning After Retirement
Getting Started: Investing With Mutual Funds
The Roth IRA: A Review
Tax Information for Mutual Fund Investors
INVESTMENT STRATEGIES
---------------------
Conservative Stock Investing
Dollar Cost Averaging
Equity Index Investing
Growth Stock Investing
Investing for Higher Yield
Managing Risk Through Diversification
The Power of Compounding
Value Investing
TYPES OF SECURITIES
-------------------
The Basics of International Stock Investing
The Basics of Tax-Free Investing
The Fundamentals of Fixed Income Investing
Global Bond Investing
Investing in Common Stocks
Investing in Emerging Growth Stocks
Investing in Financial Services Stocks
Investing in Health Care Stocks
Investing in High-Yield Municipal Bonds
Investing in Money Market Securities
Investing in Mortgage-Backed Securities
Investing in Natural Resource Stocks
Investing in Science and Technology Stocks
Investing in Small-Company Stocks Understanding
Derivatives Understanding High-Yield "Junk" Bonds
<PAGE>
BROKERAGE INSIGHTS
------------------
Combining Individual Securities With Mutual Funds
Getting Started: An Introduction to Individual Securities
What You Should Know About Bonds
What You Should Know About Margin and Short-Selling
What You Should Know About Options
What You Should Know About Stocks
T. Rowe Price Insights are also available for reading or
downloading on the Internet at WWW.TROWEPRICE.COM.
================================================================================
T. Rowe Price Brokerage
- -----------------------
BROKERAGE SERVICES
------------------
T. Rowe Price Brokerage is a division of T. Rowe Price Investment
Services, Inc., Member NASD/SIPC.
T. Rowe Price Brokerage provides high-quality services and financial
tools you can use to manage your investments effectively and
conveniently. We also offer significant commission savings over
full-service brokerages on a wide range of individual securities and
other investments.*
INTERNET AND AUTOMATED SERVICES You can enter trades, access quotes,
and review account information 24 hours a day, seven days a week, by
telephone or computer. We offer a flat-rate commission of $24.95 on
stock trades placed through our Internet-Trader service.**
RESEARCH SERVICES To help you make informed investment decisions, we
offer access to several sources of data. You can research your
investments using our Online Research & News Service, provided by
Thomson Investors Network, which includes company profiles, intra-day
and 12-month interactive charting, and analysts' ratings and earnings
estimates. Using our Research On Call service, you can request reports
from Standard & Poor's, Vicker's, Lipper, and other well-known
research providers to be delivered by fax or by mail.
DIVIDEND REINVESTMENT SERVICE This service helps keep more of your
money working for you. Cash dividends (of $10 or greater) from your
eligible securities will be invested automatically in additional
shares of the same company, free of charge. Most stocks listed on
national securities exchanges or Nasdaq are eligible for this service.
<PAGE>
By focusing on our customers' needs, T. Rowe Price Brokerage earned a
top-10 overall ranking in SMARTMONEY'S 1999 survey of leading discount
brokerage firms. Our emphasis on providing top-notch customer service
was recognized with a first-place ranking for Responsiveness and a
third-place ranking for Web Site Reliability.***
* Based on a January 1999 survey for representative-assisted stock
trades. Services vary by firm, and commissions may vary depending
on size of order.
** $24.95 per trade for up to 1,000 shares plus an additional $.02
for each share over 1,000 shares. Visit our Web site for a
complete commission schedule or call for rates on
representative-assisted and other non-Internet trades.
*** Survey covered 21 leading discount brokerage firms. Overall
rankings reflected scores in eight categories. The Responsiveness
category was based on how long it took to respond to customers in
three areas -- e-mail, telephone, and mail. The Web Site
Reliability category was based both on delays and downtime over a
105-day period from January 1, 1999, to April 12, 1999.
================================================================================
FOR YIELD, PRICE, LAST
TRANSACTION, CURRENT BALANCE,
OR TO CONDUCT TRANSACTIONS, 24
HOURS, 7 DAYS A WEEK, CALL
TELE*ACCESS [REGISTRATION
MARK:] 1-800-638-2587 toll
free
FOR ASSISTANCE WITH YOUR
EXISTING FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132 toll free
410-625-6500 Baltimore area
<PAGE>
TO OPEN A BROKERAGE ACCOUNT OR
OBTAIN INFORMATION, CALL:
1-800-638-5660 toll free
<PAGE>
INTERNET ADDRESS:
www.troweprice.com
T. Rowe Price Associates 100
East Pratt Street Baltimore,
Maryland 21202 This report is
authorized for distribution
only to shareholders and to
others who have received a
copy of the prospectus
appropriate to the fund or
funds covered in this report.
INVESTOR CENTERS:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
4200 West Cypress St.
10th Floor
Tampa, FL 33607
4410 ArrowsWest Drive
Colorado Springs, CO 80907
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills, CA 91367
T. Rowe Price Investment Services, Inc., Distributor. F40-051 6/30/99