File No. 33-62131 CIK #896983
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549-1004
POST-EFFECTIVE AMENDMENT NO. 3 TO FORM S-6
For Registration under the Securities Act of 1933 of
Securities of Unit Investment Trusts Registered on
Form N-8B-2
VAN KAMPEN AMERICAN CAPITAL EQUITY OPPORTUNITY TRUST, SERIES 19
(Exact Name of Trust)
VAN KAMPEN AMERICAN CAPITAL DISTRIBUTORS, INC.
(Exact Name of Depositor)
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
(Complete address of Depositor's principal executive offices)
VAN KAMPEN AMERICAN CAPITAL DISTRIBUTORS, INC. CHAPMAN AND CUTLER
Attention: Don G. Powell Attention: Mark J. Kneedy
One Parkview Plaza 111 West Monroe Street
Oakbrook Terrace, Illinois 60181 Chicago, Illinois 60603
(Name and complete address of agents for service)
( X ) Check if it is proposed that this filing will become effective on
April 24, 1998 pursuant to paragraph (b) of Rule 485.
SELECT TECHNOLOGY GROWTH TRUST, SERIES 1
Van Kampen American Capital Equity Opportunity Trust, Series 19
PROSPECTUS PART ONE
NOTE: Part One of this Prospectus may not be distributed unless accompanied by
Part Two. Please retain both parts of this Prospectus for future reference.
THE TRUST
The Select Technology Growth Trust, Series 1 (the "Trust") is one
unit investment trust in the Van Kampen American Capital Equity Opportunity
Trust, Series 19 (the "Fund"). The Select Technology Growth Trust
offers investors the opportunity to purchase Units representing proportionate
interests in a fixed, diversified portfolio of common stocks primarily issued
by U.S. based multi-national companies in the high technology industry (the
"Equity Securities"). Any Securities liquidated at termination will be sold
at the then current market value for such Securities; therefore, the amount
distributable in cash to a Unitholder upon termination may be more or less
than the amount such Unitholder paid for his Units.
PUBLIC OFFERING PRICE
The secondary market Public Offering Price of the Trust will include the
aggregate underlying value of the Securities in the Trust, the applicable
sales charge as described herein, and cash, if any, in the Income and Capital
Accounts held or owned by the Trust. See "Public Offering Price" in
Part Two and "Summary of Essential Financial Information".
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The Date of this Prospectus is April 24, 1998
<TABLE>
SELECT TECHNOLOGY GROWTH TRUST, SERIES 1
Van Kampen American Capital Equity Opportunity Trust, Series 19
Summary of Essential Financial Information
As of March 5, 1998
Managing Underwriter and Sub-Supervisor (1): Gruntal & Co., Incorporated
Sponsor: Van Kampen American Capital
Distributors, Inc.
Supervisor (1): Van Kampen American Capital
Investment Advisory Corp.
(An affiliate of the Sponsor)
Evaluator: American Portfolio Evaluation Services
(A division of an affiliate of the Sponsor)
Trustee: The Bank of New York
<CAPTION>
Select
Technology
Growth Trust
---------------
<S> <C>
General Information
Number of Units........................................................................................ 1,175,748
Fractional Undivided Interest in the Trust per Unit ................................................... 1/1,175,748
Public Offering Price: ................................................................................
Aggregate Value of Securities in Portfolio <F2>....................................................... $ 16,277,782
Aggregate Value of Securities per Unit (including accumulated dividends).............................. $ 13.85
Sales Charge 3.9% (4.058% of Aggregate Value of Securities excluding principal cash per Unit) <F4>.... $ .56
Public Offering Price per Unit <F3><F4>............................................................... $ 14.41
Redemption Price per Unit.............................................................................. $ 13.85
Secondary Market Repurchase Price per Unit............................................................. $ 13.85
Excess of Public Offering Price per Unit Over Redemption Price per Unit................................ $ .56
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Supervisor's Annual Supervisory Fee...Maximum of $.0025 per Unit
Evaluator's Annual Fee ...............Maximum of $.0025 per Unit
Evaluations for purpose of sale, purchase or redemption of Units
are made as of 4:00 P.M. Eastern time on days of trading on the
New York Stock Exchange next following receipt of an order for a
sale or purchase of Units or receipt by The Bank of New York of
Units tendered for redemption.
Date of Deposit.......................September 21, 1995
Mandatory Termination Date............September 21, 2000
The Trust may be terminated if the net asset value of such Trust
is less than 40% of the total value of Equity Securities deposited
Minimum Termination Value.............in the Trust during the primary offering period.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Special Information
Calculation of Estimated Net Annual Dividends per Unit...
Estimated Gross Annual Dividends per Unit............... $ .04516
Less: Estimated Expenses per Unit....................... $ .02463
Estimated Net Annual Dividends per Unit................. $ .02053
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Trustee's Annual Fee............................$.008 per Unit
Estimated Annual Organizational Expenses <F6>...$.0073 per Unit
Income Record Date..............................TENTH day of March, June, September, and December.
Income Date.....................................TWENTY-FIFTH day of March, June, September and December.
Capital Account Record Date.....................TENTH day of December.
Capital Account Distribution Date <F5>..........TWENTY-FIFTH day of December.
- ----------
<F1>Pursuant to a contractual arrangement with the Supervisor, Gruntal & Co.,
Incorporated will provide to the Supervisor on an agency basis supervisory
services in return for the entire supervisory fee.
<F2>Equity Securities listed on a national securities exchange are valued at the
closing sale price or if no such price exists, at the bid price thereof.
<F3>Anyone ordering Units will have added to the Public Offering Price a pro
rata share of any cash in the Income and Capital Accounts.
<F4>Effective on each September 23, commencing September 23, 1996, the secondary
sales charge will decrease by .5 of 1% to a minimum sales charge of 2.9%. See
"Public Offering-Offering Price" in Part Two.
<F5>Distributions from the Capital Account will be made monthly on the
twenty-fifth of the month to Unitholders or record on the tenth day of such
month if the amount available for distribution equals at least $0.01 per Unit.
<F6>The Trust (and therefore Unitholders) will bear all or a portion of its
organizational costs (including costs of preparing the registration statement,
the trust indenture and other closing documents, registering Units with the
Securities and Exchange Commission and states, the initial audit of the Trust
portfolio and the initial fees and expenses of the Trustee but not including
the expenses incurred in the preparation and printing of brochures and other
advertising materials and any other selling expenses) as is common for mutual
funds. Total organizational expenses will be amortized over a five year
period. See "Expenses of the Trust" in Part Two and "Statement of
Condition." Historically, the sponsors of unit investment trusts have paid
all the costs of establishing such trusts.
</TABLE>
PORTFOLIO
The Select Technology Growth Trust, Series 1 consists of common stocks
primarily issued by U.S. based multi-national companies in the high technology
industry. All of the Equity Securities are listed on a national securities
exchange, the NASDAQ National Market or traded on the Over-the-Counter market.
PER UNIT INFORMATION
<TABLE>
<CAPTION>
1995(1) 1996 1997
------------- ------------- --------------
<S> <C> <C> <C>
Net asset value per Unit at beginning of period.................................$ 9.78 $ 9.41 $ 12.37
============= ============= ==============
Net asset value per Unit at end of period.......................................$ 9.41 $ 12.37 $ 13.02
============= ============= ==============
Distributions to Unitholders of investment income paid on Units redeemed
(average Units outstanding for entire period)...................................$ -- $ (0.01) $ .02
============= ============= ==============
Distributions to Unitholders from Unit redemption proceeds
(average Units outstanding for entire period)...................................$ -- $ 0.32 $ .25
============= ============= ==============
Unrealized appreciation (depreciation) of Equity Securities
(per Unit outstanding at end of period).... $ (0.13) $ 3.40 $ .62
============= ============= ==============
Units outstanding at end of period.............................................. 1,900,000 1,472,750 1,237,748
- ----------
(1)For the period from September 21, 1995 (date of deposit) through December 31,
1995.
</TABLE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Board of Directors of Van Kampen American Capital Distributors, Inc.
and the Unitholders of Select Technology Growth Trust, Series 1 (Van Kampen
American Capital Equity Opportunity Trust, Series 19):
We have audited the accompanying statements of condition (including the
analyses of net assets) and the related portfolio of the Select Technology
Growth Trust, Series 1 (Van Kampen American Capital Equity Opportunity Trust,
Series 19) as of December 31, 1997, and the related statements of operations
and changes in net assets for the period from September 21, 1995 (date of
deposit) through December 31, 1995 and the years ended December 31, 1996 and
1997. These statements are the responsibility of the Trustee and the Sponsor.
Our responsibility is to express an opinion on such statements based
on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned at December 31, 1997 by
correspondence with the Trustee. An audit also includes assessing the
accounting principles used and significant estimates made by the Trustee and
the Sponsor, as well as evaluating the overall financial statement
presentation. We believe our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Select Technology Growth
Trust, Series 1 (Van Kampen American Capital Equity Opportunity Trust, Series
19) as of December 31, 1997, and the results of operations and changes in net
assets for the period from September 21, 1995 (date of deposit) through
December 31, 1995 and the years ended December 31, 1996 and 1997, in
conformity with generally accepted accounting principles.
GRANT THORNTON LLP
Chicago, Illinois
March 13, 1998
<TABLE>
SELECT TECHNOLOGY GROWTH TRUST
SERIES 1
Statements of Condition
December 31, 1997
<CAPTION>
Select
Technology
Growth
Trust
--------------
<S> <C>
Trust property
Cash.................................................................................... $ --
Securities at market value, (cost $10,574,338) (note 1)................................. 16,088,428
Accumulated dividends................................................................... 7,744
Organizational Costs.................................................................... 20,123
--------------
$ 16,116,295
==============
Liabilities and interest to Unitholders
Cash overdraft.......................................................................... $ 4,038
Accrued Organizational Costs............................................................ --
Interest to Unitholders................................................................. 16,112,257
--------------
$ 16,116,295
==============
Analyses of Net Assets
Interest of Unitholders (1,237,748 Units of fractional undivided interest outstanding)
Cost to original investors of 2,000,000 Units (note 1).................................. $ 19,472,000
Less initial underwriting commission (note 3)........................................... 393,318
--------------
19,078,682
Less redemption of 762,252 Units........................................................ 9,102,401
--------------
9,976,281
Undistributed net investment income
Net investment income................................................................... 65,501
Less distributions to Unitholders....................................................... (7,979)
--------------
57,522
Realized gain (loss) on Security sale or redemption..................................... 1,482,273
Unrealized appreciation (depreciation) of Securities (note 2)........................... 5,514,090
Distributions to Unitholders of Security sale or redemption proceeds.................... (917,909)
--------------
Net asset value to Unitholders.......................................................... $ 16,112,257
==============
Net asset value per Unit (1,237,748 Units outstanding)................................... $ 13.02
==============
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
SELECT TECHNOLOGY GROWTH TRUST, SERIES 1
Statements of Operations
Period from September 21, 1995 (date of deposit) through December 31, 1995
and the years ended December 31, 1996 and 1997
<CAPTION>
1995 1996 1997
------------- ------------- ------------
<S> <C> <C> <C>
Investment income
Dividend income..................................................... $ 15,902 $ 69,360 $ 57,457
Expenses
Trustee fees and expenses........................................... 5,362 17,856 14,066
Evaluator fees...................................................... 693 4,611 3,981
Supervisory fees.................................................... 693 8,024 3,981
Organizational fees................................................. 2,948 5,033 9,970
------------- ------------- ------------
Total expenses...................................................... 9,696 35,524 31,998
------------- ------------- ------------
Net investment income............................................... 6,206 33,836 25,459
Realized gain (loss) from Securities sale or redemption
Proceeds............................................................ -- 6,267,874 3,718,743
Cost................................................................ -- 5,381,404 3,122,940
------------- ------------- ------------
Realized gain (loss)................................................ -- 886,470 595,803
Net change in unrealized appreciation (depreciation) of Securities... (256,289) 5,005,216 765,163
------------- ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS......$ (250,083) $ 5,925,522 $ 1,386,425
============= ============= ============
</TABLE>
<TABLE>
Statements of Changes in Net Assets
Period from September 21, 1995 (date of deposit) through December 31, 1995
and the year ended December 31, 1996 and 1997
<CAPTION>
1995 1996 1997
------------- ------------- ------------
<S> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income................................................$ 6,206 $ 33,836 $ 25,459
Realized gain (loss) on Securities sale or redemption................ -- 886,470 595,803
Net change in unrealized appreciation (depreciation) of Securities... (256,289) 5,005,216 765,163
------------- ------------- ------------
Net increase (decrease) in net assets resulting from operations...... (250,083) 5,925,522 1,386,425
Distributions to Unitholders from:
Net investment income................................................ -- 12,310 (20,289)
Securities sale or redemption proceeds............................... -- (579,214) (388,695)
Redemption of Units................................................... -- (5,969,855) (3,132,546)
------------- ------------- ------------
Total increase (decrease)............................................ (250,083) (611,237) (2,105,105)
Net asset value to Unitholders
Beginning of period.................................................. 977,828 17,888,341 18,217,362
Additional Securities purchased from proceeds of Unit Sales.......... 17,160,596 940,258 --
------------- ------------- ------------
End of period (including undistributed net investment income of
$6,206, $52,352 and $57,522, respectively)............................$ 17,888,341 $ 18,217,362 $ 16,112,257
============= ============= ============
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
SELECT TECHNOLOGY GROWTH TRUST, SERIES 1
PORTFOLIO as of December 31, 1997
<CAPTION>
Valuation of Securities
Number at December 31,
of Market Value Per 1997
Shares Name of Issuer Share (Note 1)
- ---------- ---------------------------------------------- --------------------- ----------------------------
<S> <C> <C> <C>
6,310 Adobe Systems, Incorporated $ 41.1250 $ 259,499
- ------------------------------------------------------------------------------------------------------------
34,288 Applied Materials, Incorporated 30.0625 1,030,783
- ------------------------------------------------------------------------------------------------------------
2,883 Autodesk, Incorporated 36.7500 105,950
- ------------------------------------------------------------------------------------------------------------
9,889 Ascend Communications, Incorporated 24.5625 242,899
- ------------------------------------------------------------------------------------------------------------
44,094 Cisco System, Incorporated 55.7500 2,458,241
- ------------------------------------------------------------------------------------------------------------
27,791 Hewlett-Packard Company 62.5000 1,736,938
- ------------------------------------------------------------------------------------------------------------
4,979 Informix Corporation 4.7500 23,650
- ------------------------------------------------------------------------------------------------------------
28,248 Intel Corporation 70.1875 1,982,657
- ------------------------------------------------------------------------------------------------------------
25,334 International Business Machines Corporation 104.5625 2,648,986
- ------------------------------------------------------------------------------------------------------------
802 LSI Logic Corporation 19.7500 15,839
- ------------------------------------------------------------------------------------------------------------
765 Lattice Semiconductor Corporation 47.3750 36,242
- ------------------------------------------------------------------------------------------------------------
429 Linear Technology Corporation 57.5000 24,667
- ------------------------------------------------------------------------------------------------------------
5,001 Microsoft Corporation 129.1875 646,067
- ------------------------------------------------------------------------------------------------------------
13,099 Motorola, Incorporated 57.0625 747,462
- ------------------------------------------------------------------------------------------------------------
4,044 National Semiconductor Corporation 25.9375 104,891
- ------------------------------------------------------------------------------------------------------------
13,668 Netscape Communications Corporation 24.2500 331,449
- ------------------------------------------------------------------------------------------------------------
54,248 Oracle Corporation 22.2500 1,207,017
- ------------------------------------------------------------------------------------------------------------
25,773 Seagate Technology, Incorporated 19.2500 496,130
- ------------------------------------------------------------------------------------------------------------
15,766 Tellabs, Incorporated 52.6875 830,671
- ------------------------------------------------------------------------------------------------------------
3,870 Teradyne, Incorporated 32.0000 123,840
- ------------------------------------------------------------------------------------------------------------
22,990 Texas Instruments, Incorporated 45.0000 1,034,550
- ---------- ----------------------------
344,271 $ 16,088,428
========== ============================
</TABLE>
The accompanying notes are an integral part of these statements.
SELECT TECHNOLOGY GROWTH TRUST, SERIES 1
Notes to Financial Statements
December 31, 1995, 1996 and 1997
- --------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Security Valuation - Securities listed on a national securities exchange are
valued at the last closing sales price or, if not so listed, at the bid price.
Security Cost - The original cost to the Trust of the Securities was based,
for Securities listed on a national securities exchange on the closing sale
prices on the exchange or, if not so listed, at the asked price. The cost was
determined on the day of the various Dates of Deposit.
Unit Valuation - The redemption price per Unit is the pro rata share of each
Unit based upon (1) the cash on hand in the Trust or monies in the process of
being collected, (2) the Securities in the Trust based on the value as
described in Note 1 and (3) accumulated dividends thereon, less accrued
expenses of the Trust, if any.
Federal Income Taxes - Each Unitholder is considered to be the owner of a pro
rata portion of the Trust and, accordingly, no provision has been made for
Federal Income Taxes.
Distributions to Unitholders of the Trust's taxable income will be taxable as
ordinary or capital gain income to Unitholders.
Other - The financial statements are presented on the accrual basis of
accounting. Any realized gains or losses from securities transactions are
reported on an identified cost basis.
Organizational Costs - The Trust will bear all or a portion of its
organizational costs, which will be deferred and amortized over five years.
NOTE 2 - PORTFOLIO
Unrealized Appreciation and Depreciation - An analysis of net unrealized
appreciation (depreciation) at December 31, 1997 is as follows:
<TABLE>
<CAPTION>
<S> <C>
Unrealized Appreciation $ 6,197,506
Unrealized Depreciation (683,416)
-------------
$ 5,514,090
=============
</TABLE>
NOTE 3 - OTHER
Marketability - Although it is not obligated to do so, the Managing
Underwriter intends to maintain a market for Units and to continuously offer
to purchase Units at prices, subject to change at any time, based upon the
value of the Securities in the portfolio of the Trust valued as described in
Note 1, plus accumulated dividends to the date of settlement. If the supply of
Units exceeds demand, or for other business reasons, the Managing Underwriter
may discontinue purchases of Units at such prices. In the event that a market
is not maintained for the Units, a Unitholder desiring to dispose of his Units
may be able to do so only by tendering such Units to the Trustee for
redemption at the redemption price.
Cost to Investors - The cost to original investors was based by adding to the
underlying value of the Securities per Unit on the date of an investor's
purchase, plus an amount equal to the difference between the maximum sales
charge of 4.9% of the public offering price which is equivalent to 5.152% of
the underlying value of the Securities and the maximum deferred sales charge
of ($0.29 per Unit) and were assessed a deferred sales charge. Commencing
September 23, 1996, the secondary sales charge does not includes deferred
payments but will instead include only a one-time initial sales charge of 4.4%
of the public offering price and will decrease by .5 of 1% on each September
23 to a minimum sales charge of 2.9%.
Compensation of Evaluator and Supervisor - the Supervisor receives a fee for
providing portfolio supervisory services for the Trust ($.0025 per Unit, not
to exceed the aggregate cost of the Supervisor for providing such services to
all applicable Trusts). The Evaluator receives an annual fee for regularly
evaluating the Trust's portfolio. Both fees may be adjusted for increases
under the category "All Services Less Rent of Shelter" in the Consumer
Price Index.
NOTE 4 - REDEMPTION OF UNITS
During the periods ended December 31, 1995, 1996 and 1997, 0 Units and 527,250
Units,and 235,002 Units, respectively, were presented for redemption.
SELECT TECHNOLOGY GROWTH TRUST, SERIES 1 PROSPECTUS PART TWO
- --------------------------------------------------------------------------------
THE TRUST. Select Technology Growth Trust, Series 1 (the "Trust") is a unit
investment trust which is contained in Van Kampen American Capital Equity
Opportunity Trust, Series 19. The Trust offers investors the opportunity to
purchase Units representing proportionate interests in a fixed, diversified
portfolio of common stocks issued by U.S. based multi-national companies in the
high-technology industry (the "Equity Securities"). Unless terminated earlier,
the Trust will terminate on September 21, 2000 (the "Mandatory Termination
Date") and any Equity Securities then held will, within a reasonable time
thereafter, be liquidated or distributed by the Trustee. Any Equity Securities
liquidated at termination will be sold at the then current market value for such
Equity Securities; therefore, the amount distributable in cash to a Unitholder
upon termination may be more or less than the amount such Unitholder paid for
his or her Units.
OBJECTIVE OF THE TRUST. The objective of the Trust is to provide the
potential for capital appreciation by investing in a portfolio of common stocks
issued by U.S. based multi-national companies in the high-technology industry.
See "Portfolio" in Part One. Each Unit of the Trust represents an undivided
fractional interest in all the Equity Securities deposited in the Trust. There
is, of course, no guarantee that the objective of the Trust will be achieved.
PUBLIC OFFERING PRICE. The Public Offering Price per Unit is equal to the
aggregate underlying value of the Equity Securities plus or minus cash, if any,
in the Capital and Income Accounts, divided by the number of Units outstanding,
plus the sales charge described herein. If Units were available for purchase on
the date thereof, the Public Offering Price per Unit would have been that amount
set forth under "Summary of Essential Financial Information" in Part One.
The minimum purchase is 100 Units (25 Units for a tax-sheltered retirement
plan).
DIVIDEND AND CAPITAL DISTRIBUTIONS. Distributions of dividends and capital,
if any, received by the Trust will be paid in cash on the applicable
distribution date to Unitholders of record on the record date as set forth in
the "Summary of Essential Financial Information" in Part One. Any distribution
of income and/or capital will be net of the expenses of the Trust. See "Tax
Status." Additionally, upon termination of the Trust, the Trustee will
distribute, upon surrender of Units for redemption, to each Unitholder his pro
rata share of the Trust's assets, less expenses, in the manner set forth under
"Rights of Unitholders--Distributions of Income and Capital."
SECONDARY MARKET FOR UNITS. Although not obligated to do so, the Managing
Underwriter intends to maintain a market for Units of the Trust and offer to
repurchase such Units at prices which are based on the aggregate underlying
value of Equity Securities in the Trust (generally determined by the closing
sale or bid prices of the Equity Securities), plus or minus a pro rata share of
cash, if any, in the Capital and Income Accounts of the Trust. If a secondary
market is not maintained, a Unitholder may redeem Units through redemption at
prices based upon the aggregate underlying value of the Equity Securities in the
Trust (generally determined by the closing sale or bid prices of the Equity
Securities), plus or minus a pro rata share of cash, if any, in the Capital and
Income Accounts of the Trust. A Unitholder tendering 2,500 Units or more for
redemption may request an In Kind Distribution of shares of Equity Securities
(reduced by customary transfer and registration charges) in lieu of payment in
cash. See "Rights of Unitholders--Redemption of Units."
NOTE: THIS PROSPECTUS MAY BE USED ONLY WHEN ACCOMPANIED BY PART ONE.
BOTH PARTS OF THIS PROSPECTUS SHOULD
BE RETAINED FOR FUTURE REFERENCE. THIS PROSPECTUS IS
DATED AS OF THE DATE OF THE PROSPECTUS PART I
ACCOMPANYING THIS PROSPECTUS PART II.
- --------------------------------------------------------------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
TERMINATION. Commencing on the Mandatory Termination Date, Equity Securities
will begin to be sold in connection with the termination of the Trust. The
Sponsor will determine the manner, timing and execution of the sale of the
Equity Securities. At least 60 days prior to the Mandatory Termination Date the
Trustee will provide written notice thereof to all Unitholders and will include
with such notice a form to enable Unitholders to elect a distribution of shares
of Equity Securities if such Unitholder owns at least 2,500 Units of the Trust
rather than to receive payment in cash for such Unitholder's pro rata share of
the amounts realized upon the disposition by the Trustee of Equity Securities.
All Unitholders will receive cash in lieu of any fractional shares. To be
effective, the election form, and other documentation required by the Trustee,
must be returned to the Trustee at least five business days prior to the
Mandatory Termination Date. Unitholders not electing a distribution of shares of
Equity Securities will receive a cash distribution from the sale of the
remaining Securities within a reasonable time after the Trust is terminated. See
"Trust Administration--Amendment or Termination."
REINVESTMENT OPTION. Unitholders may have the opportunity to have their
distributions reinvested into additional Units of the Trust. The reinvestment
option will be subject to availability of Units and the Sponsor may suspend or
terminate the reinvestment option at any time. See "Rights of
Unitholders--Reinvestment Option."
RISK FACTORS. An investment in the Trust should be made with an understanding
of the risks associated therewith, including, among other factors, the possible
deterioration of either the financial condition of the issuers or the general
condition of the stock market, volatile interest rates, economic recession, and
risks specific to the high-technology industry such as rapid product
obsolescence due to dynamic industry development. The Trust is not actively
managed and Equity Securities will not be sold by the Trust to take advantage of
market fluctuations or changes in anticipated rates of appreciation. Units of
the Trust are not deposits or obligations of, or guaranteed or endorsed by, any
bank and are not federally insured or otherwise protected by the Federal Deposit
Insurance Corporation, the Federal Reserve Board or any other agency and involve
investment risk, including the possible loss of principal. See "Risk Factors."
THE TRUST
Van Kampen American Capital Equity Opportunity Trust, Series 19 is comprised
of one unit investment trust, Select Technology Growth Trust, Series 1 (the
"Trust"). The Trust was created under the laws of the State of New York pursuant
to a Trust Indenture and Agreement (the "Trust Agreement"), dated the date of
this Prospectus (the "Initial Date of Deposit"), among Van Kampen American
Capital Distributors, Inc., as Sponsor, American Portfolio Evaluation Services,
a division of Van Kampen American Capital Investment Advisory Corp., as
Evaluator, Van Kampen American Capital Investment Advisory Corp., as Supervisor
and The Bank of New York, as Trustee.
The Trust may be an appropriate medium for investors who desire to
participate in a diversified portfolio of equity securities issued by U.S. based
multi-national companies in the high-technology industry. Diversification of
assets in the Trust will not eliminate the risk of loss always inherent in the
ownership of securities. For a breakdown of the portfolio see "Trust Portfolio."
On the Initial Date of Deposit, the Sponsor deposited with the Trustee the
Equity Securities including delivery statements relating to contracts for the
purchase of certain such Equity Securities and an irrevocable letter of credit
issued by a financial institution in the amount required for such purchases.
Thereafter, the Trustee, in exchange for such Equity Securities (and contracts)
so deposited, delivered to the Sponsor documentation evidencing the ownership of
Units of the Trust. Unless otherwise terminated as provided in the Trust
Agreement, the Trust will terminate on the Mandatory Termination Date and Equity
Securities then held will within a reasonable time thereafter be liquidated or
distributed by the Trustee.
Each Unit of the Trust initially offered represents an undivided interest in
the Trust. To the extent that any Units are redeemed by the Trustee the
fractional undivided interest in the Trust represented by each unredeemed Unit
will increase although the actual interest in the Trust represented by such
fraction will remain unchanged. Units will remain outstanding until redeemed
upon tender to the Trustee by Unitholders, which may include the Managing
Underwriter, or until the termination of the Trust Agreement.
OBJECTIVES AND SECURITIES SELECTION
The objective of the Trust is to provide investors with the potential for
capital appreciation. The portfolio is described under "Trust Portfolio" herein
and "Portfolio" in Part One. The Trust seeks to achieve its objective through a
portfolio of domestic equity securities of industry market leaders that present
the potential for growth in the expanding areas of communications, large-scale
computers, semiconductors and semiconductor fabrication equipment. By investing
in a number of areas within the computer industry, the Trust seeks to provide
diversity which may help to minimize the effects of rapidly changing product
life cycles and stock market fluctuations inherent to the high-technology
industry. An investor will be subjected to taxation on the dividend income, if
any, received from the Trust and on gains from the sale or liquidation of Equity
Securities (see "Tax Status"). Investors should be aware that there is not any
guarantee that the objective of the Trust will be achieved because the market
value of the Equity Securities can be affected by a variety of factors. Common
stocks may be 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. Investors should be aware that there can be
no assurance that the value of the underlying Equity Securities will increase or
that the issuers of the Equity Securities will pay dividends on outstanding
common shares. Any distributions of income will generally depend upon the
declaration of dividends by the issuers of the Equity Securities and the
declaration of any dividends depends upon several factors including the
financial condition of the issuers and general economic conditions.
In the opinion of Gruntal & Co., Incorporated, the high-technology industry
offers an attractive investment opportunity for investors seeking the potential
for long-term growth. The high-technology industry is currently dominated
worldwide by a relatively small number of U.S. companies that have created
today's technology and are developing the technology of the future. Gruntal &
Co., believes that an expanding worldwide market, lower prices and increased
ease of use should generate substantial growth for personal computers and all
related products. Accordingly, Gruntal & Co. believes that the computer industry
is just entering its adolescence and the universal appeal of personal computers
will continue to drive demand for years to come. Multitudes of new buyers are
seeking new technological products for personal use and personal computers have
become affordably priced systems for many buyers in less-developed countries.
Consumers already use computers for shopping, paying bills, sending letters,
entertainment and education, and as the industry grows, consumers are likely to
buy personal computers to travel the information highway. Furthermore, companies
dedicated to improving productivity are continually investing in and upgrading
computers to remain competitive--according to industry estimates, there are 50
personal computers installed per 100 workers in the U.S. compared to 22 in
western Europe, 17 in Japan and even less in other countries, representing an
opportunity for worldwide growth. Because technology has become a vital part of
life and a key to the economic future of businesses and individuals, Gruntal &
Co. anticipates more growth in the high-technology sector than almost any other
industry. In selecting the Equity Securities, Gruntal & Co. considered the
following factors, among others: the company's ability to develop leading-edge
technology, attractiveness of market fundamentals, management's ability to
succeed in a rapidly changing environment, the development of a company's
product line, the company's strength within its sector and maintaining portfolio
diversification within the high-technology industry.
The Equity Securities were selected by Gruntal & Company's high-technology
market analyst team, Roxane Googin and Mona Eraiba. Roxane Googin received her
M.B.A. from the University of Virginia, her B.S. in Engineering from the
University of Tennessee, and she has over 10 years of experience in the
high-technology industry. Ms. Googin recently earned The Wall Street Journal's
top All-Star Analyst ranking in the computer networking stocks sector. In
selecting the Equity Securities, Ms. Googin concentrated on identifying the
growth potential of U.S. computer companies involved in the areas of
communications and large-scale computing. Mona Eraiba received her M.B.A. from
Columbia University in New York, her B.S. in Electrical Engineering from
Washington University and has over 12 years of investment experience, including
a specialization in high-technology issues. In selecting the Equity Securities,
Ms. Eraiba concentrated on the potential growth found in equities of companies
involved in the areas of semiconductors and semiconductor fabrication equipment.
Investors should be aware that members of the Managing Underwriter's research
department, including Ms. Googin and Ms. Eraiba, are compensated based on
brokerage commissions generated from their research and on the dollar amount of
sales of the Trust. In addition, Ms. Googin and Ms. Eraiba may trade the Equity
Securities in their own personal accounts.
Investors should be aware that the Trust is not a "managed" fund and as a
result the adverse financial condition of a company will not result in its
elimination from the portfolio except under extraordinary circumstances (see
"Trust Administration--Portfolio Administration"). In addition, Equity
Securities will not be sold by the Trust to take advantage of market
fluctuations or changes in anticipated rates of appreciation. Investors should
note in particular that the Equity Securities were selected by the Managing
Underwriter prior to the Initial Date of Deposit and the portfolio is designed
to achieve the objective of the Trust over the entire term of the Trust. The
Trust may continue to purchase or hold Equity Securities originally selected
through this process even though the evaluation of the attractiveness of the
Equity Securities may have changed and, if the evaluation were performed again
at that time, the Equity Securities would not be selected for the Trust.
TRUST PORTFOLIO
The Trust consists of the several issues of Equity Securities issued by U.S.
based multi-national companies in the high-technology industry. All of the
Equity Securities are listed on a national securities exchange, the NASDAQ
National Market System or traded in the over-the-counter market. Each of the
companies whose Equity Securities are included in the portfolio were selected
based upon those factors referred to under "Objectives and Securities Selection"
above.
The Trust consists of such of the Equity Securities listed under "Portfolio"
in Part One as may continue to be held from time to time in the Trust and any
additional Equity Securities acquired and held by the Trust pursuant to the
provisions of the Trust Agreement together with cash held in the Income and
Capital Accounts. Neither the Sponsor nor the Trustee shall be liable in any way
for any failure in any of the Equity Securities. However, should any contract
for the purchase of any of the Equity Securities initially deposited hereunder
fail, the Sponsor will, unless substantially all of the moneys held in the Trust
to cover such purchase are reinvested in substitute Equity Securities in
accordance with the Trust Agreement, refund the cash and sales charge
attributable to such failed contract to all Unitholders on the next distribution
date.
Because certain of the Equity Securities from time to time may be sold under
certain circumstances described herein, and because the proceeds from such
events will be distributed to Unitholders and will not be reinvested, no
assurance can be given that the Trust will retain for any length of time its
present size and composition. Although the portfolio is not managed, the Sponsor
may instruct the Trustee to sell Equity Securities under certain limited
circumstances. Pursuant to the Trust Agreement and with limited exceptions, the
Trustee may sell any securities or other property acquired in exchange for
Equity Securities such as those acquired in connection with a merger or other
transaction. If offered such new or exchanged securities or property, the
Trustee shall reject the offer. However, in the event such securities or
property are nonetheless acquired by the Trust, they may be accepted for deposit
in the Trust and either sold by the Trustee or held in the Trust pursuant to the
direction of the Sponsor (who may rely on the advice of the Supervisor). See
"Trust Administration--Portfolio Administration." Equity Securities, however,
will not be sold by the Trust to take advantage of market fluctuations or
changes in anticipated rates of appreciation or depreciation.
Unitholders will be unable to dispose of any of the Equity Securities as such
and will not be able to vote the Equity Securities. As the holder of the Equity
Securities, the Trustee will have the right to vote all of the voting stocks in
the Trust and will vote such stocks in accordance with the instructions of the
Sponsor.
The Managing Underwriter may acquire the Equity Securities for the Sponsor.
The Managing Underwriter in its general securities business acts as agent or
principal in connection with the purchase and sale of equity securities,
including the Equity Securities in the Trust, and may act as a market maker in
certain of the Equity Securities. The Managing Underwriter may also, from time
to time, issue reports on and make recommendations relating to equity
securities, which may include the Equity Securities. From time to time the
Managing Underwriter may act as investment banker or an employee or affiliate
may be a director of a company whose shares are included among the Equity
Securities; nonpublic information concerning such a company would not be
disclosed to the Managing Underwriter or for the benefit of the Trust under such
circumstances.
RISK FACTORS
An investment in Units of the Trust should be made with an understanding of
the characteristics of the high-technology industry and the risks which such an
investment may entail. The market for high-technology products is characterized
by rapidly changing technology, rapid product obsolescence, cyclical market
patterns, evolving industry standards and frequent new product introductions.
The success of the issuers of the Equity Securities depends in substantial part
on the timely and successful introduction of new products. An unexpected change
in one or more of the technologies affecting an issuer's products or in the
market for products based on a particular technology could have a material
adverse affect on an issuer's operating results. Furthermore, there can be no
assurance that the issuers of the Equity Securities will be able to respond
timely to compete in the rapidly developing marketplace.
Based on trading history of common stock, factors such as announcements of
new products or development of new technologies and general conditions of the
industry have caused and are likely to cause the market price of high-technology
common stocks to fluctuate substantially. In addition, technology company stocks
have experienced extreme price and volume fluctuations that often have been
unrelated to the operating performance of such companies. This market volatility
may adversely affect the market price of the Equity Securities and therefore the
ability of a 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 Equity Securities will obtain orders of similar
magnitude as past orders from other customers. Similarly, the success of certain
technology companies is tied to a relatively small concentration of products or
technologies. Accordingly, a decline in demand of such products, technologies or
from such customers could have a material adverse impact on issuers of the
Equity Securities.
Certain issuers of the Equity Securities may derive a significant amount of
business in foreign markets. Many countries, especially emerging market
countries, have regulatory requirements that differ from U.S. requirements and
are characterized by less developed and more volatile economies. International
sales and operations are subject to certain risks, including unexpected changes
in regulatory environments, exchange rates, tariffs and other barriers,
political and economic instability and potentially adverse tax consequences. All
of these factors could have a material adverse impact on the financial condition
of certain issuers.
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 Equity Securities to protect their proprietary
rights will be adequate to prevent misappropriation of their technology or that
competitors will not independently develop technologies that are substantially
equivalent or superior to such issuer's technology.
An investment in Units should also be made with an understanding of the risks
which an investment in common stocks entail, including the risk that the
financial condition of the issuers of the Equity Securities or the general
condition of the common stock market may worsen and the value of the Equity
Securities and therefore the value of the Units may decline. 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. The 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 have a right to receive dividends only when and if, and in the
amounts, declared by the issuer's board of directors and have a right to
participate in amounts available for distribution by the issuer only after all
other claims on the issuer have been paid or provided for. Common stocks do not
represent an obligation of the issuer and, therefore, do not offer any assurance
of income or provide the same degree of protection of capital as do debt
securities. The issuance of additional debt securities or preferred stock will
create prior claims for payment of principal, interest and dividends which could
adversely affect the ability and inclination of the issuer to declare or pay
dividends on its common stock or the rights of holders of common stock with
respect to assets of the issuer upon liquidation or bankruptcy. The value of
common stocks is subject to market fluctuations for as long as the common stocks
remain outstanding, and thus the value of the Equity Securities may be expected
to fluctuate over the life of the Trust to values higher or lower than those
prevailing on the Initial Date of Deposit.
Holders of common stocks incur more risk than holders of preferred stocks and
debt obligations because common stockholders, as owners of the entity, generally
have 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 of liquidation
which are senior to those of common stockholders.
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 the Trust.
For purposes of the following discussion and opinion, it is assumed that each
Equity Security is equity for federal income tax purposes.
In the opinion of Chapman and Cutler, special counsel for the Sponsor, under
existing law:
1. The 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 share of income
derived from each Trust asset when such income is considered to be received by
the Trust.
2. Each Unitholder will have a taxable event when the Trust disposes of an
Equity Security (whether by sale, 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 available and received by such
Unitholder from the Trust, as described below). The price a Unitholder pays for
his Units, generally including sales charges, is allocated among his pro rata
portion of each Equity Security held by the Trust (in proportion to the fair
market values thereof on the valuation date closest to the date the Unitholder
purchases his Units) in order to determine his tax basis for his pro rata
portion of each Equity Security held by the Trust. Unitholders should consult
their own tax advisors with regard to calculation of basis.
A Unitholder will be considered to have received all of the dividends paid on
his pro rata portion of each Equity Security when such dividends are received by
the Trust. Unitholders will be taxed in this manner regardless of whether
distributions from the Trust are actually received by the Unitholder or are
automatically reinvested. For federal income tax purposes, a Unitholder's pro
rata portion of the dividends, as defined by Section 316 of the Code, paid with
respect to an Equity Security held by the Trust are 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 Equity
Security which exceed such current and accumulated earnings and profits will
first reduce a Unitholder's tax basis in such Equity Security, and to the extent
that such dividends exceed a Unitholder's tax basis in such Equity Security
shall generally be treated as capital gain. In general, the holding period for
such capital gain will be determined by the period of time a Unitholder has held
his Units.
3. A Unitholder's portion of gain, if any, upon the sale or redemption of
Units or the disposition of Equity 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 Equity 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 advisers regarding
the recognition of such capital gains and losses for federal income tax
purposes.
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 Equity 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 Section 246(c) of the Code). Final regulations have
been issued which address special rules that must be considered in determining
whether the 46 day holding period requirement is met. Moreover, the allowable
percentage of the deduction will be reduced from 70% if a corporate Unitholder
owns certain stock (or Units) the financing of which is directly attributable to
indebtedness incurred by such corporation. It should be noted that various
legislative proposals that would affect the dividends received deduction have
been introduced. Unitholders should consult with their tax advisers with respect
to the limitations on and possible modifications to the dividends received
deduction.
To the extent dividends received by the Trust are attributable to foreign
corporations, a corporation that owns Units will not be entitled to the
dividends received deduction with respect to its pro rata portion of such
dividends, since the dividends received deduction is generally available only
with respect to dividends paid by domestic corporations.
LIMITATIONS ON DEDUCTIBILITY OF TRUST EXPENSES BY UNITHOLDERS. Each
Unitholder's pro rata share of each expense paid by the Trust is deductible by
the Unitholder to the same extent as though the expense had been paid directly
by him. 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. Unitholders may be required to treat some or all of the expenses of the
Trust as miscellaneous itemized deductions subject to this limitation.
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 an Equity Security is disposed of by the Trust or if the
Unitholder disposes of a Unit. The Taxpayer Relief Act of 1997 (the "1997 Act")
provides that for taxpayers other than corporations, net capital gain (which is
defined as net long-term capital gain over net short-term capital loss for the
taxable year) is subject to a maximum marginal stated tax rate of either 28% or
20%, depending upon the holding periods of the capital assets. Capital gain or
loss is long-term if the holding period for the asset is more than one year, and
is short-term if the holding period for the asset is one year or less. The date
on which a Unit is acquired (i.e., the "trade date") is excluded for purposes of
determining the holding period of the Unit. Generally, capital gains realized
from assets held for more than one year but not more than 18 months are taxed at
a maximum marginal stated tax rate of 28% and capital gains realized from assets
(with certain exclusions) held for more than 18 months are taxed at a maximum
marginal stated tax rate of 20% (10% in the case of certain taxpayers in the
lowest tax bracket). Further, capital gains realized from assets held for one
year or less are taxed at the same rates as ordinary income. Legislation is
currently pending that provides the appropriate methodology that should be
applied in netting the realized capital gains and losses. Such legislation is
proposed to be effective retroactively for tax years ending after May 6, 1997.
It should be noted that legislative proposals are introduced from time to time
that affect tax rates and could affect relative differences at which ordinary
income and capital gains are taxed.
In addition, please note that capital gains may be recharacterized as
ordinary income in the case of certain financial transactions that are
considered "conversion transactions" effective for transactions entered into
after April 30, 1993. Unitholders and prospective investors should consult with
their tax advisors regarding the potential effect of this provision on their
investment in Units.
If the Unitholder disposes of a Unit, he or she is deemed thereby to have
disposed of his or her entire pro rata interest in all assets of the Trust
including his or her pro rata portion of all the Equity Securities represented
by the Unit. The 1997 Act includes provisions that treat certain transactions
designed to reduce or eliminate risk of loss and opportunities for gain (e.g.,
short sales, offsetting notional principal contracts, futures or forward
contracts, or similar transactions) as constructive sales for purposes of
recognition of gain (but not loss) and for purposes of determining the holding
period. Unitholders should consult their own tax advisers with regard to any
such constructive sales rules.
SPECIAL TAX CONSEQUENCES OF IN-KIND DISTRIBUTIONS UPON REDEMPTION OR
TERMINATION OF THE TRUST. Under certain circumstances, a Unitholder tendering
Units for redemption may be able to request an In-Kind Distribution. In-Kind
Distributions are not available, however, of foreign securities held by the
Trust. A Unitholder may also under certain circumstances be able to request an
In-Kind Distribution upon the termination of the Trust. See "Rights of
Unitholders--Redemption of Units." As previously discussed, prior to the
redemption of Units or the termination of the Trust, a Unitholder is considered
as owning a pro rata portion of each of the Trust assets for federal income tax
purposes. The receipt of an In-Kind Distribution 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 Equity
Securities. An "Equity 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 Equity Securities in exchange for his or her pro
rata portion in the Equity Securities held by the Trust. However, if a
Unitholder also receives cash in exchange for a fractional share of an Equity
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 tax basis in such fractional share of an Equity Security held
by the Trust.
Because the Trust will own many Equity Securities, a Unitholder who requests
an In-Kind Distribution will have to analyze the tax consequences with respect
to each Equity Security owned by the Trust. The amount of taxable gain (or loss)
recognized upon such exchange will generally equal the sum of the gain (or loss)
recognized under the rules described above by such Unitholder with respect to
each Equity Security owned by the Trust. Unitholders who request an In-Kind
Distribution are advised to consult their tax advisers in this regard.
Computation of the Unitholder's Tax Basis. Initially, a Unitholder's tax
basis in his Units will generally equal the price paid by such Unitholder for
his Units. The cost of the Units is allocated among the Equity Securities held
in the Trust in accordance with the proportion of the fair market values of such
Equity Securities on the valuation date closest to the date the Units are
purchased in order to determine such Unitholder's tax basis for his pro rata
portion of each Equity Security.
A Unitholder's tax basis in his Units and his pro rata portion of an Equity
Security held by the Trust will be reduced to the extent dividends paid with
respect to such Equity Security are received by the Trust which are not taxable
as ordinary income as described above.
GENERAL. Each Unitholder will be requested to provide the Unitholder's
taxpayer identification number to the trustee and to certify that the Unitholder
has not been notified that payments to the Unitholder are subject to back-up
withholding. If the proper taxpayer identification number and appropriate
certification are not provided when requested, distributions by the Trust to
such Unitholder (including amounts received upon the redemption of Units) will
be subject to back-up withholding. Distributions by the Trust (other than those
that are not treated as United States source income, if any) will generally be
subject to United States income taxation and withholding in the case of Units
held by non-resident alien individuals, foreign corporations or other non-United
States person. Such persons should consult their tax advisers.
In general, income that is not effectively connected to the conduct of a
trade or business within the United States that is earned by non-U.S.
Unitholders and derived from dividends of foreign corporations will not be
subject to U.S. withholding tax provided that less than 25 percent of the gross
income of the foreign corporation for a three-year period ending with the close
of its taxable year preceding payment was not effectively connected to the
conduct of a trade or business within the United States. In addition, such
earnings may be exempt from U.S. withholding pursuant to a specific treaty
between the United States and a foreign country. Non-U.S. Unitholders should
consult their own tax advisers regarding the imposition of U.S. withholding on
distributions from the Trust.
It should be noted that payments to the Trust of dividends on Equity
Securities that are attributable to foreign corporations may be subject to
foreign withholding taxes and Unitholders should consult their tax advisers
regarding the potential tax consequences relating to the payment of any such
withholding taxes by the Trust. Any dividends withheld as a result thereof will
nevertheless be treated as income to the Unitholders. Because, under the grantor
trust rules, an investor is deemed to have paid directly his share of foreign
taxes that have been paid or accrued, if any, an investor may be entitled to a
foreign tax credit or deduction for United States tax purposes with respect to
such taxes. The 1997 Act imposes a required holding period for such credits.
Investors should consult their tax advisers with respect to foreign withholding
taxes and foreign tax credits.
At the termination of the Trust, the Trustee will furnish to each Unitholder
of such Trust a statement containing information relating to the dividends
received by the Trust on the Equity Securities, the gross proceeds received by
the Trust from the disposition of any Equity Security (resulting from redemption
or the sale of any Equity Security), and the fees and expenses paid by the
Trust. The Trustee will also furnish annual information returns to Unitholders
and to the Internal Revenue Service.
Unitholders desiring to purchase Units for tax-deferred plans and IRAs should
consult their broker-dealers for details on establishing such accounts. Units
may also be purchased by persons who already have self-directed plans
established.
In the opinion of special counsel to the Trust for New York tax matters, the
Trust is not an association taxable as a corporation and the income of the Trust
will be treated as the income of the Unitholders under the existing income tax
laws of the State and City of New York.
The foregoing discussion relates only to the tax treatment of U.S.
Unitholders ("U.S. Unitholders") 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 the 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.
TRUST OPERATING EXPENSES
COMPENSATION OF SPONSOR, EVALUATOR, SUPERVISORY SERVICER AND MANAGING
UNDERWRITER. The Sponsor will not receive any fees in connection with its
activities relating to the Trust. The Evaluator shall receive that evaluation
fee, payable in any month incurred, set forth under "Summary of Essential
Financial Information" in Part One (which is based on the number of Units
outstanding on January 1 of each year for which such compensation relates) for
regularly evaluating the Trust portfolio. Such fee may exceed the actual cost of
providing such evaluation services for this Trust, but at no time will the total
amount paid to the Evaluator for providing evaluation services to unit
investment trusts of which Van Kampen American Capital Distributors, Inc. acts
as Sponsor in any calendar year exceed the aggregate cost to the Evaluator of
supplying such services in such year. The Supervisory Servicer will receive an
annual supervisory fee, payable in monthly installments, which is not to exceed
the amount set forth under "Summary of Essential Financial Information" in Part
One (which is based on the number of Units outstanding on January 1 of each year
for which such compensation relates) for providing portfolio supervisory
services for the Trust. Such fee may exceed the actual costs of providing such
supervisory services for this Trust, but at no time will the total amount
received for portfolio supervisory services rendered to series of Van Kampen
American Capital Equity Opportunity Trust and to any other unit investment
trusts sponsored by the Sponsor for which the Supervisor provides portfolio
supervisory services in any calendar year exceed the aggregate cost to the
Supervisor of supplying such services in such year. Pursuant to a contract with
the Supervisor, the Managing Underwriter, which is regularly engaged in the
business of evaluating, quoting or appraising comparable securities, provides,
for both the initial offering period and secondary market transactions,
portfolio supervisory services for the Trust and receives for such services the
entire supervisory fee paid to the Supervisor. Both of the foregoing fees may be
increased without approval of the Unitholders by amounts not exceeding
proportionate increases under the category "All Services Less Rent of Shelter"
in the Consumer Price Index published by the United States Department of Labor
or, if such category is no longer published, in a comparable category. The
Sponsor and the Managing Underwriter will receive sales commissions and may
realize other profits (or losses) in connection with the sale of Units and the
deposit of the Equity Securities as described under "Public Offering--Sponsor
and Managing Underwriter Compensation."
TRUSTEE'S FEE. For its services the Trustee will receive an annual fee from
the Trust as set forth under "Summary of Essential Financial Information" in
Part One (which amount is based on the number of Units outstanding on January 1
of each year for which such compensation relates). The Trustee's fees are
payable in monthly installments on or before the twenty-fifth day of each month
from the Income Account to the extent funds are available and then from the
Capital Account. The Trustee benefits to the extent there are funds for future
distributions, payment of expenses and redemptions in the Capital and Income
Accounts since these accounts are non-interest bearing and the amounts earned by
the Trustee are retained by the Trustee. Part of the Trustee's compensation for
its services to the Trust is expected to result from the use of these funds.
Such fees may be increased without approval of the Unitholders by amounts not
exceeding proportionate increases under the category "All Services Less Rent of
Shelter" in the Consumer Price Index published by the United States Department
of Labor or, if such category is no longer published, in a comparable category.
For a discussion of the services rendered by the Trustee pursuant to its
obligations under the Trust Agreement, see "Rights of Unitholders--Reports
Provided" and "Trust Administration."
MISCELLANEOUS EXPENSES. Expenses incurred in establishing the Trust,
including the cost of the initial preparation of documents relating to the Trust
(including the Prospectus, Trust Agreement and certificates), federal and state
registration fees, the initial fees and expenses of the Trustee, legal and
accounting expenses, payment of closing fees and any other out-of-pocket
expenses, will be paid by the Trust and amortized over the life of the Trust.
The following additional charges are or may be incurred by the Trust: (a) normal
expenses (including the cost of mailing reports to Unitholders) incurred in
connection with the operation of the Trust, (b) fees of the Trustee for
extraordinary services, (c) expenses of the Trustee (including legal and
auditing expenses) and of counsel designated by the Sponsor, (d) various
governmental charges, (e) expenses and costs of any action taken by the Trustee
to protect the Trust and the rights and interests of Unitholders, (f)
indemnification of the Trustee for any loss, liability or expenses incurred in
the administration of the Trust without gross negligence, bad faith or wilful
misconduct on its part and (g) expenditures incurred in contacting Unitholders
upon termination of the Trust.
The fees and expenses set forth herein are payable out of the Trust. When
such fees and expenses are paid by or owing to the Trustee, they are secured by
a lien on the Trust's portfolio. Since the Equity Securities are all common
stocks, and the income stream produced by dividend payments is unpredictable,
the Sponsor cannot provide any assurance that dividends will be sufficient to
meet any or all expenses of the Trust. If the balances in the Income and Capital
Accounts are insufficient to provide for amounts payable by the Trust, the
Trustee has the power to sell Equity Securities to pay such amounts. These sales
may result in capital gains or losses to Unitholders. See "Tax Status."
PUBLIC OFFERING
GENERAL. Units are offered at the Public Offering Price (which is based on
the aggregate underlying value of the Equity Securities and includes a sales
charge initially equal to 4.4% of the Public Offering Price which will be
reduced by .5 of 1% on each September 23, commencing September 23, 1997, to a
minimum of 2.9%). The total maximum sales charge assessed to Unitholders on a
per Unit basis will be 4.4% of the Public Offering Price (4.603% of the
aggregate value of the Securities in the Trust). Such underlying value shall
include the proportionate share of any undistributed cash held in the Capital
and Income Accounts.
Any sales charge reduction will primarily be the responsibility of the
selling Managing Underwriter, broker, dealer or agent. Registered
representatives of selling brokers, dealers, or agents may purchase Units of the
Trust at the current Public Offering Price less the concession described under
"Unit Distribution".
A "Qualified Gruntal Purchaser" may purchase Units of the Trust at a Public
Offering Price subject to a one-time secondary market sales charge of 2.9% of
the Public Offering Price. The term "Qualified Gruntal Purchaser" includes (1)
employees, officers and directors of Gruntal & Co., Incorporated, (2) immediate
family members thereof (spouses, children, grandchildren, parents, grandparents,
mothers-in-law, fathers-in-law, sons-in-law and daughters-in-law) and (3)
trustees, custodians or fiduciaries for the benefit of the persons described in
(1) and (2).
OFFERING PRICE. The Public Offering Price of the Units will vary from the
amounts stated under "Summary of Essential Financial Information" in Part One in
accordance with fluctuations in the prices of the underlying Equity Securities
in the Trust.
As indicated above, the price of the Units was established by adding to the
determination of the aggregate underlying value of the Equity Securities an
amount equal to the sales charge for the Trust (initially 4.4% of the Public
Offering Price) and dividing the sum so obtained by the number of Units
outstanding. Such underlying value shall include the proportionate share of any
cash held in the Income and Capital Accounts. Such price determination as of the
close of business on the day before the Initial Date of Deposit was made on the
basis of an evaluation of the Equity Securities in the Trust prepared by
Interactive Data Services, Inc., a firm regularly engaged in the business of
evaluating, quoting or appraising comparable securities. Thereafter, the
Evaluator on each business day will appraise or cause to be appraised the value
of the underlying Equity Securities as of the Evaluation Time on days the New
York Stock Exchange is open and will adjust the Public Offering Price of the
Units commensurate with such valuation. Such Public Offering Price will be
effective for all orders received prior to the Evaluation Time on each such day.
Orders received by the Trustee or Managing Underwriter for purchases, sales or
redemptions after that time, or on a day when the New York Stock Exchange is
closed, will be held until the next determination of price. Commencing on
September 23, 1996, the secondary market sales charge will not include deferred
payments but will instead include only a one-time initial sales charge of 4.4%
of the Public Offering Price and will be reduced by .5 of 1% on each subsequent
September 23 to a minimum sales charge of 2.9%.
The value of the Equity Securities during the secondary market is determined
on each business day by the Evaluator as described under "Rights of Unitholders
- - Redemption of Units."
In offering the Units to the public, neither the Sponsor, the Managing
Underwriter nor any broker-dealers are recommending any of the individual Equity
Securities in the Trust but rather the entire pool of Equity Securities, taken
as a whole, which are represented by the Units.
UNIT DISTRIBUTION. Units will be distributed to the public by the Managing
Underwriter, broker-dealers and others at the Public Offering Price. Upon the
completion of the initial offering period, Units repurchased in the secondary
market, if any, may be offered by this Prospectus at the secondary market Public
Offering Price in the manner described above.
The Sponsor intends to qualify the Units for sale in a number of states.
Certain commercial banks are making Units of the Trust available to their
customers on an agency basis. A portion of the sales charge (equal to the agency
commission referred to above) is retained by or remitted to the banks. Under the
Glass-Steagall Act, banks are prohibited from underwriting Trust Units; however,
the Glass-Steagall Act does permit certain agency transactions and the banking
regulators have not indicated that these particular agency transactions are not
permitted under such Act. In addition, state securities laws on this issue may
differ from the interpretations of federal law expressed herein and banks and
financial institutions may be required to register as dealers pursuant to state
law. Any quantity discount provided to investors will be borne by the selling
dealer, agent, Managing Underwriter or the Sponsor as indicated under "General"
above. For secondary market transactions, the concession or agency commission
will amount to 70% of the sales charge applicable to the transaction.
To facilitate the handling of transactions, sales of Units shall normally be
limited to transactions involving a minimum of 100 Units (25 Units for a
tax-sheltered retirement plan). The Managing Underwriter reserves the right to
reject, in whole or in part, any order for the purchase of Units and to change
the amount of the concession or agency commission to dealers and others from
time to time. Brokers and dealers of the Trust, banks and/or others are eligible
to participate in a program in which such firms receive from the Managing
Underwriter a nominal award for each of their registered representatives who
have sold a minimum number of units of unit investment trusts created by the
Managing Underwriter during a specified time period. In addition, at various
times the Managing Underwriter may implement other programs under which the
sales forces of brokers, dealers, banks and/or others may be eligible to win
other nominal awards for certain sales efforts, or under which the Managing
Underwriter will reallow to any such brokers, dealers, banks and/or others that
sponsor sales contests or recognition programs conforming to criteria
established by the Managing Underwriter, or participate in sales programs
sponsored by the Managing Underwriter, an amount not exceeding the total
applicable sales charges on the sales generated by such person at the public
offering price during such programs. Also, the Managing Underwriter in its
discretion may from time to time pursuant to objective criteria established by
the Managing Underwriter pay fees to qualifying brokers, dealers, banks and/or
others for certain services or activities which are primarily intended to result
in sales of Units of the Trust. Such payments are made by the Managing
Underwriter out of its own assets and not out of the assets of the Trust. These
programs will not change the price Unitholders pay for their Units or the amount
that the Trust will receive from the Units sold.
SPONSOR AND MANAGING UNDERWRITER COMPENSATION. The Managing Underwriter will
receive a gross sales commission initially equal to 4.4% of the Public Offering
Price of the Units, less any reduced sales charge as described under "General"
above. Any discount provided to investors will borne by the selling Managing
Underwriter, dealer or agent as indicated under "General" above.
In addition, the Managing Underwriter realized a profit or sustained a loss,
as the case may be, as a result of the difference between the price paid for the
Equity Securities by the Managing Underwriter and the cost of such Equity
Securities to the Trust on the Initial Date of Deposit as well as on subsequent
deposits. The Sponsor has not participated as sole underwriter or as manager or
as a member of the underwriting syndicates or as an agent in a private placement
for any of the Equity Securities in the Trust portfolio. The Sponsor and the
Managing Underwriter may further realize additional profit or loss as a result
of the possible fluctuations in the market value of the Equity Securities in the
Trust after a date of deposit, since all proceeds received from the sale of
Units (excluding dealer concessions and agency commissions allowed, if any) will
be retained by the Sponsor or Managing Underwriter.
A person will become the owner of the Units on the date of settlement
provided payment has been received. Cash, if any, made available to the Sponsor
or Managing Underwriter prior to the date of settlement for the purchase of
Units may be used in the Sponsor's or Managing Underwriter's business and may be
deemed to be a benefit to the Sponsor or Managing Underwriter, subject to the
limitations of the Securities Exchange Act of 1934.
As stated under "Public Market" below, the Managing Underwriter intends to
maintain a secondary market for Units of the Trust. In so maintaining a market,
the Managing Underwriter or the Sponsor will also realize profits or sustain
losses in the amount of any difference between the price at which Units are
purchased and the price at which Units are resold (which price includes the
applicable sales charge). In addition, the Managing Underwriter or the Sponsor
will also realize profits or sustain losses resulting from a redemption of such
repurchased Units at a price above or below the purchase price for such Units,
respectively.
PUBLIC MARKET. Although it is not obligated to do so, the Managing
Underwriter intends to maintain a secondary market for the Units offered hereby
and offer continuously to purchase Units at prices subject to change at any
time, based upon the aggregate underlying value of the Equity Securities in the
Trust (computed as indicated under "Offering Price" above and "Rights of
Unitholders--Redemption of Units"). If the supply of Units exceeds demand or if
some other business reason warrants it, the Managing Underwriter may either
discontinue all purchases of Units or discontinue purchases of Units at such
prices. In the event that a market is not maintained for the Units and the
Unitholder cannot find another purchaser, a Unitholder desiring to dispose of
his Units will be able to dispose of such Units by tendering them to the Trustee
for redemption at the Redemption Price. A Unitholder who wishes to dispose of
his Units should inquire of his broker as to current market prices in order to
determine whether there is in existence any price in excess of the Redemption
Price and, if so, the amount thereof.
TAX-SHELTERED RETIREMENT PLANS. Units of the Trust are available for purchase
in connection with certain types of tax-sheltered retirement plans, including
Individual Retirement Accounts for individuals, Simplified Employee Pension
Plans for employees, qualified plans for self-employed individuals, and
qualified corporate pension and profit sharing plans for employees. The purchase
of Units of the Trust may be limited by the plans' provisions and does not
itself establish such plans. The minimum purchase in connection with a
tax-sheltered retirement plan is 25 Units.
RIGHTS OF UNITHOLDERS
GENERAL. The Trustee is authorized to treat as the record owner of Units that
person who is registered as such owner on the books of the Trustee. Ownership of
Units of the Trust will be evidenced by book entry unless a Unitholder or the
Unitholder's registered broker-dealer makes a written request to the Trustee
that ownership be evidenced by certificates. Units are transferable by making a
written request to the Trustee and, in the case of Units evidenced by a
certificate, by presentation and surrender of such certificate to the Trustee
properly endorsed or accompanied by a written instrument or instruments of
transfer. A Unitholder must sign such written request, and such certificate or
transfer instrument, exactly as his name appears on the records of the Trustee
and on the face of any certificate representing the Units to be transferred with
the signature guaranteed by a participant in the Securities Transfer Agents
Medallion Program ("STAMP") or such other signature guarantee program in
addition to, or in substitution for, STAMP as may be accepted by the Trustee. In
certain instances the Trustee may require additional documents such as, but not
limited to, trust instruments, certificates of death, appointments as executor
or administrator or certificates of corporate authority. Certificates will be
issued in denominations of one Unit or any whole multiple thereof.
Although no such charge is now made or contemplated, the Trustee may require
a Unitholder to pay a reasonable fee for each certificate reissued or
transferred and to pay any governmental charge that may be imposed in connection
with each such transfer of interchange. Destroyed, stolen, mutilated or lost
certificates will be replaced upon delivery to the Trustee of satisfactory
indemnity, evidence of ownership and payment of expenses incurred. Mutilated
certificates must be surrendered to the Trustee for replacement.
DISTRIBUTIONS OF INCOME AND CAPITAL. Any dividends received by the Trust with
respect to the Equity Securities therein are credited by the Trustee to the
Income Account. Other receipts (e.g., capital gains, proceeds from the sale of
Equity Securities, etc.) are credited to the Capital Account.
The Trustee will distribute any net income with respect to any of the Equity
Securities in the Trust on or about the Income Distribution Dates to Unitholders
of record on the preceding Income Record Dates. See "Summary of Essential
Financial Information" in Part One. Proceeds received on the sale of any Equity
Securities in the Trust, to the extent not used to meet redemptions of Units or
pay expenses, will (except as hereinafter provided) be distributed annually on
the Capital Account Distribution Date to Unitholders of record on the preceding
Capital Account Record Date. Proceeds received from the disposition of any of
the Equity Securities after a record date and prior to the following
distribution date will be held in the Capital Account of the Trust and not
distributed until the next distribution date applicable to such Capital Account.
Proceeds received on the sale of any Equity Securities in the Trust, to the
extent not used to meet redemptions of Units or pay expenses, will, however, be
distributed on the twenty-fifth day of each month to holders of record on the
tenth day of such month if the amount available for distribution equals at least
$0.01 per Unit. The Trustee is not required to pay interest on funds held in the
Capital or Income Accounts (but may itself earn interest thereon and therefore
benefits from the use of such funds).
The distribution to Unitholders as of each record date will be made on the
following distribution date or shortly thereafter and shall consist of each
Unitholder's pro rata share of the cash in the Income Account after deducting
estimated expenses. Because dividends are not received by the Trust at a
constant rate throughout the year, such distributions to Unitholders are
expected to fluctuate from distribution to distribution. 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.
On or before the twenty-fifth day of each month, the Trustee will deduct from
the Income Account and, to the extent funds are not sufficient therein, from the
Capital Account, amounts necessary to pay the expenses of the Trust (as
determined on the basis set forth under "Trust Operating Expenses"). The Trustee
also may withdraw from said accounts such amounts, if any, as it deems necessary
to establish a reserve for any governmental charges payable out of the Trust.
Amounts so withdrawn shall not be considered a part of the Trust's assets until
such time as the Trustee shall return all or any part of such amounts to the
accounts. In addition, the Trustee may withdraw from the Income and Capital
Accounts such amounts as may be necessary to cover redemptions of Units.
REINVESTMENT OPTION. Unitholders of the Trust may elect to have each
distribution of income, capital gains and/or capital on their Units
automatically reinvested in additional Units of the Trust subject only to the
remaining deferred sales charge payments (to the extent Units may be lawfully
offered for sale in the state in which the Unitholder resides). To participate
in the reinvestment plan, a Unitholder may either contact his or her broker or
agent or file with the Trustee a written notice of election at least ten days
prior to the Record Date for which the first distribution is to apply. A
Unitholder's election to participate in the reinvestment plan will apply to all
Units of the Trust owned by such Unitholder and such election will remain in
effect until changed by the Unitholder."
Reinvestment plan distributions may be reinvested in Units already held in
inventory by the Managing Underwriter (see "Public Offering--Public Market") or,
until such time as additional Units cease to be issued by the Trust (see "The
Trust"), distributions may be reinvested in such additional Units. If Units are
unavailable in the secondary market, distributions which would otherwise have
been reinvested shall be paid in cash to the Unitholder on the applicable
Distribution Date.
Purchases of additional Units made pursuant to the reinvestment plan will be
made subject only to the remaining deferred sales charge payments on the related
Income or Capital Distribution Dates. Under the reinvestment plan, the Trust
will pay the Unitholder's distributions to the Trustee which in turn will
purchase for such Unitholder Units of the Trust and will send such Unitholder a
statement reflecting the reinvestment.
A participant may at any time prior to five days preceding the next
succeeding distribution date, by so notifying the Trustee in writing, elect to
terminate his or her reinvestment plan and receive future distributions on his
or her Units in cash. There will be no charge or other penalty for such
termination. The Sponsor shall have the right to suspend or terminate the
reinvestment plan at any time.
REPORTS PROVIDED. The Trustee shall furnish Unitholders in connection with
each distribution a statement of the amount of income and the amount of other
receipts (received since the preceding distribution), if any, being distributed,
expressed in each case as a dollar amount representing the pro rata share of
each Unit 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 the Trust a statement (i) as to
the Income Account: income received, deductions for applicable taxes and for
fees and expenses of the Trust, for redemptions of Units, if any, and the
balance remaining after such distributions and deductions, expressed in each
case both as a total dollar amount and as a dollar amount representing the pro
rata share of each Unit outstanding on the last business day of such calendar
year; (ii) as to the Capital Account: the dates of disposition of any Equity
Securities and the net proceeds received therefrom, deductions for payment of
applicable taxes, fees and expenses of the Trust held for distribution to
Unitholders of record as of a date prior to the determination and the balance
remaining after such distributions and deductions expressed both as a total
dollar amount and as a dollar amount representing the pro rata share of each
Unit outstanding on the last business day of such calendar year; (iii) a list of
the Equity Securities held by the Trust and the number of Units outstanding on
the last business day of such calendar year; (iv) the Redemption Price per Unit
based upon the last computation thereof made during such calendar year; and (v)
amounts actually distributed during such calendar year from the Income and
Capital Accounts, separately stated, expressed as total dollar amounts.
In order to comply with federal and state tax reporting requirements,
Unitholders will be furnished, upon request to the Trustee, evaluations of the
Securities in the Trust furnished to it by the Evaluator.
REDEMPTION OF UNITS. A Unitholder may redeem all or a portion of his or her
Units by tender to the Trustee at its unit investment trust division office at
101 Barclay Street, 20th Floor, New York, New York 10286 of a request for
redemption duly endorsed or accompanied by proper instruments of transfer with
signature guaranteed as described above and by payment of applicable
governmental charges, if any. No redemption fee will be charged. On the third
business day following such tender the Unitholder will receive in cash (unless
the redeeming Unitholder elects an "In Kind Distribution" as described below) an
amount for each Unit equal to the Redemption Price per Unit next computed after
receipt by the Trustee of such tender of Units as of the Evaluation Time set
forth under "Summary of Essential Financial Information" in Part One. The "date
of tender" is deemed to be the date on which Units are received by the Trustee,
except that with respect to Units received after the applicable Evaluation Time
the date of tender is the next day on which the New York Stock Exchange is open
for trading and such Units will be deemed to have been tendered to the Trustee
on such day for redemption at the redemption price computed on that day.
The Trustee is empowered to sell Equity Securities of the Trust in order to
make funds available for redemption if funds are not otherwise available in the
Capital and Income Accounts to meet redemptions. The Equity Securities to be
sold will be selected by the Trustee from those designated on a current list
provided by the Supervisor for this purpose. Units so redeemed shall be
cancelled.
Unitholders in the Trust tendering 2,500 or more Units for redemption may
request from the Trustee in lieu of a cash redemption a distribution in kind
("In Kind Distribution") of an amount and value of Equity Securities per Unit
equal to the Redemption Price per Unit as determined as of the next evaluation
following the tender. An In Kind Distribution on redemption of Units will be
made by the Trustee through the distribution of each of the Equity Securities in
book-entry form to the account of the Unitholder's broker-dealer at Depository
Trust Company. The tendering Unitholder will receive his pro rata number of
whole shares of each of the Equity Securities comprising the Trust 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 Equity 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 the Equity 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 Equity Securities according to
the criteria discussed above.
To the extent that Equity Securities are redeemed in kind or sold, the size
of the Trust will be, and the diversity of the Trust may be, reduced. Sales may
be required at a time when the Equity Securities would not otherwise be sold and
may result in lower prices than might otherwise be realized. The price received
upon redemption may be more or less than the amount paid by the Unitholder
depending on the value of the Equity Securities in the portfolio at the time of
redemption. Special federal income tax consequences will result if a Unitholder
requests an In Kind Distribution. See "Tax Status."
The Redemption Price per Unit (as well as the secondary market Public
Offering Price) will be determined on the basis of the aggregate underlying
value of the Equity Securities in the Trust, plus or minus cash, if any, in the
Income and Capital Accounts of the Trust. The Redemption Price per Unit is the
pro rata share of each Unit in the Trust determined on the basis of (i) the cash
on hand in such Trust, (ii) the value of the Equity Securities in such Trust and
(iii) dividends receivable on the Equity Securities of such Trust trading
ex-dividend as of the date of computation, less (a) amounts representing taxes
or other governmental charges payable out of such Trust and (b) the accrued
expenses of such Trust. The Evaluator may determine the value of the Equity
Securities in the Trust in the following manner: if the Equity Securities are
listed on a national securities exchange, this evaluation is generally based on
the closing sale prices on that exchange (unless it is determined that these
prices are inappropriate as a basis for valuation) or, if there is no closing
sale price on that exchange, at the closing bid prices. If the Equity Securities
of the Trust are not so listed or, if so listed and the principal market
therefore is other than on the exchange, the evaluation shall generally be based
on the current bid price on the over-the-counter market (unless these prices are
inappropriate as a basis for evaluation). If current bid prices are unavailable
or inappropriate as a basis for valuation, the evaluations generally determined
(a) on the basis of current bid prices for comparable securities, (b) by
appraising the value of the Equity Securities of such Trust on the bid side of
the market or (c) by any combination of the above.
The right of redemption may be suspended and payment postponed for any period
during which the New York Stock Exchange is closed, other than for customary
weekend and holiday closings, or any period during which the Securities and
Exchange Commission determines that trading on that Exchange is restricted or an
emergency exists, as a result of which disposal or evaluation of the Securities
in the Trust is not reasonably practicable, or for such other periods as the
Securities and Exchange Commission may by order permit.
TRUST ADMINISTRATION
MANAGING UNDERWRITER PURCHASES OF UNITS. The Trustee shall notify the
Managing Underwriter of any Units tendered for redemption. If the Managing
Underwriter's bid in the secondary market at that time equals or exceeds the
Redemption Price per Unit, it may purchase such Units by notifying the Trustee
before the close of business on the next succeeding business day and by making
payment therefor to the Unitholder not later than the day on which the Units
would otherwise have been redeemed by the Trustee. Units held by the Managing
Underwriter may be tendered to the Trustee for redemption as any other Units.
The offering price of any Units acquired by the Managing Underwriter will be
in accord with the Public Offering Price described in the then currently
effective prospectus describing such Units. Any profit resulting from the resale
of such Units will belong to the Managing Underwriter which likewise will bear
any loss resulting from a lower offering or redemption price subsequent to its
acquisition of such Units.
PORTFOLIO ADMINISTRATION. The portfolio of the Trust is not "managed" by the
Sponsor, Supervisor or the Trustee; their activities described herein are
governed solely by the provisions of the Trust Agreement. Traditional methods of
investment management for a managed fund typically involve frequent changes in a
portfolio of securities on the basis of economic, financial and market analyses.
While the Trust will not be managed, the Trust Agreement does provide that the
Sponsor may (but need not) direct the Trustee to dispose of an Equity Security
in certain events such as the issuer having defaulted on the payment on any of
its outstanding obligations or the price of an Equity Security has declined to
such an extent or other such credit factors exist so that in the opinion of the
Sponsor the retention of such Equity Securities would be detrimental to the
Trust. Pursuant to the Trust Agreement and with limited exceptions, the Trustee
may sell any securities or other properties acquired in exchange for Equity
Securities such as those acquired in connection with a merger or other
transaction. If offered such new or exchanged securities or property, the
Trustee shall reject the offer. However, in the event such securities or
property are nonetheless acquired by the Trust, they may be accepted for deposit
in the Trust and either sold by the Trustee or held in such Trust pursuant to
the direction of the Sponsor (who may rely on the advice of the Supervisor).
Proceeds from the sale of Equity Securities (or any securities or other property
received by the Trust in exchange for Equity Securities) are credited to the
Capital Account for distribution to Unitholders or to meet redemptions. Except
as stated under "Trust Portfolio--General" for failed securities and as provided
in this paragraph, the acquisition by the Trust of any securities other than the
Equity Securities is prohibited.
As indicated under "Rights of Unitholders--Redemption of Units" above, the
Trustee may also sell Equity Securities designated by the Supervisor, or if no
such designation has been made, in its own discretion, for the purpose of
redeeming Units of the Trust tendered for redemption and the payment of
expenses.
The Supervisor, in designating Equity Securities to be sold by the Trustee,
will generally make selections in order to maintain, to the extent practicable,
the proportionate relationship among the individual issues of Equity Securities
in the Trust. To the extent this is not practicable, the composition and
diversity of the Equity Securities in such Trust may be altered. In order to
obtain the best price for the Trust, it may be necessary for the Supervisor to
specify minimum amounts (generally 100 shares) in which blocks of Equity
Securities are to be sold.
AMENDMENT OR TERMINATION. The Trust Agreement 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 (as determined in good faith by the Sponsor and
the Trustee), provided, however, that the Trust Agreement may not be amended to
increase the number of Units (except as provided in the Trust Agreement). The
Trust Agreement may also be amended in any respect by the Trustee and Sponsor,
or any of the provisions thereof may be waived, with the consent of the holders
representing 51% of the Units of the Trust then outstanding, provided that no
such amendment or waiver will reduce the interest in such Trust of any
Unitholder without the consent of such Unitholder or reduce the percentage of
Units required to consent to any such amendment or waiver without the consent of
all Unitholders. The Trustee shall advise the Unitholders of any amendment
promptly after execution thereof.
The Trust may be liquidated at any time by consent of Unitholders
representing 66 2/3% of the Units then outstanding or by the Trustee when the
value of the Equity Securities owned by the Trust, as shown by any evaluation,
is less than that amount set forth under "Minimum Termination Value" in the
"Summary of Essential Financial Information" in Part One. The Trust will be
liquidated by the Trustee in the event that a sufficient number of Units not yet
sold are tendered for redemption by the Managing Underwriter or the Sponsor, so
that the net worth of the Trust would be reduced to less than 40% of the value
of the Equity Securities at the time they were deposited in the Trust. If the
Trust is liquidated because of the redemption of unsold Units by the Sponsor
and/or the Managing Underwriter, the Sponsor will refund to each purchaser of
Units the entire sales charge paid by such purchaser. The Trust Agreement will
terminate upon the sale or other disposition of the last Equity Security held
thereunder, but in no event will it continue beyond the Mandatory Termination
Date stated under "Summary of Essential Financial Information" in Part One.
Commencing on the Mandatory Termination Date, Equity Securities will begin to
be sold in connection with the termination of the Trust. The Sponsor will
determine the manner, timing and execution of the sales of the Equity
Securities. At least 60 days before the Mandatory Termination Date the Trustee
will provide written notice of any termination to all Unitholders of the Trust
and will include with such notice a form to enable Unitholders owning 2,500 or
more Units to request an In Kind Distribution rather than payment in cash upon
the termination of the Trust. To be effective, this request must be returned to
the Trustee at least ten business days prior to the Mandatory Termination Date.
On the Mandatory Termination Date (or on the next business day thereafter if a
holiday) the Trustee will deliver each requesting Unitholder's pro rata number
of whole shares of each of the Equity Securities in the Trust to the account of
the broker-dealer or bank designated by the Unitholder at Depository Trust
Company. The value of the Unitholder's fractional shares of the Equity
Securities will be paid in cash. Unitholders with less than 2,500 Units and
Unitholders not requesting an In Kind Distribution will receive a cash
distribution from the sale of the remaining Equity Securities within a
reasonable time following the Mandatory Termination Date. Regardless of the
distribution involved, the Trustee will deduct from the funds of the Trust any
accrued costs, expenses, advances or indemnities provided by the Trust
Agreement, including estimated compensation of the Trustee, costs of liquidation
and any amounts required as a reserve to provide for payment of any applicable
taxes or other governmental charges. Any sale of Equity Securities in the Trust
upon termination may result in a lower amount than might otherwise be realized
if such sale were not required at such time. The Trustee will then distribute to
each Unitholder of the Trust his pro rata share of the balance of the Income and
Capital Accounts.
The Trustee will attempt to sell Securities, in consultation with the
Sponsor, as quickly as possible commencing on the Mandatory Termination Date
without in the judgment of the Sponsor materially adversely affecting the market
price of the Securities. The Sponsor does not anticipate that the period will be
longer than one month, and it could be as short as one day, depending on the
liquidity of the Securities being sold. The liquidity of any Security depends on
the daily trading volume of the Security and the amount that the Sponsor has
available on any particular day.
It is expected (but not required) that the following guidelines will be
followed in selling the Securities; for highly liquid Securities, the Securities
will generally be sold on the Mandatory Termination Date; for less liquid
Securities, on each of the first two days subsequent to the Mandatory
Termination Date, the amount of any underlying Securities will generally be sold
at a price no less than 1/2 of one point under the closing sale price of those
Securities on the preceding day. Thereafter, the Sponsor intends that such sales
will be made without any price restrictions at least a portion of the remaining
underlying Securities, the numerator of which is one and the denominator of
which is the total number of days remaining (including that day) in the one
month period following the Mandatory Termination Date.
Within 60 days of the final distribution Unitholders will be furnished a
final distribution statement of the amount distributable. At such time as the
Trustee in its sole discretion will determine that any amounts held in reserve
are no longer necessary, it will make distribution thereof to Unitholders in the
same manner.
LIMITATIONS ON LIABILITIES. The Sponsor, the Evaluator, the Supervisor and
the Trustee shall be under no liability to Unitholders for taking any action or
for refraining from taking any action in good faith pursuant to the Trust
Agreement, or for errors in judgment, but shall be liable only for their own
willful misfeasance, bad faith or gross negligence (negligence in the case of
the Trustee) in the performance of their duties or by reason of their reckless
disregard of their obligations and duties hereunder.
The Trustee shall not be liable for depreciation or loss incurred by reason
of the sale by the Trustee of any of the Equity Securities. In the event of the
failure of the Sponsor to act under the Trust Agreement, the Trustee may act
thereunder and shall not be liable for any action taken by it in good faith
under the Trust Agreement. The Trustee shall not be liable for any taxes or
other governmental charges imposed upon or in respect of the Equity Securities
or upon the interest thereon or upon it as Trustee under the Trust Agreement or
upon or in respect of the Trust which the Trustee may be required to pay under
any present or future law of the United States of America or of any other taxing
authority having jurisdiction. In addition, the Trust Agreement contains other
customary provisions limiting the liability of the Trustee.
The Trustee, Sponsor, Supervisor 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 Trust Agreement 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,
Supervisor 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.
Managing Underwriter. Gruntal & Co., Incorporated is a full-service
investment bank headquartered at 14 Wall Street in New York. Established in
1880, Gruntal has a proud history of client service, financial stability and
growth. Today, Gruntal has over 2,100 employees in 33 offices across the United
States. The scope of Gruntal's business spans a broad range of financial
services including investment banking, research, trading, asset management and
brokerage services to individuals, institutions and corporations worldwide.
SPONSOR. Van Kampen American Capital Distributors, Inc., a Delaware
corporation, is the Sponsor of the Trust. The Sponsor is an indirect subsidiary
of VK/AC Holding, Inc. VK/AC Holding, Inc. is a wholly owned subsidiary of MSAM
Holdings II, Inc., which in turn is a wholly owned subsidiary of Morgan Stanley,
Dean Witter, Discover & Co. ("MSDWD").
MSDWD is a global financial services firm with a market capitalization of
more than $21 billion which was created by the merger of Morgan Stanley Group
Inc. with and into Dean Witter, Discover & Co. on May 31, 1997. MSDWD, together
with various of its directly and indirectly owned subsidiaries, is engaged in a
wide range of financial services through three primary businesses: securities,
asset management and credit services. These principal businesses include
securities underwriting, distribution and trading; merger, acquisition,
restructuring and other corporate finance advisory activities; merchant banking;
stock brokerage and research services; asset management; trading of futures,
options, foreign exchange commodities and swaps (involving foreign exchange,
commodities, indices and interest rating and investing; global custody,
securities clearance services and securities lending; and credit card services.
As of June 2, 1997, MSDWD, together with its affiliated investment advisory
companies, had approximately $270 billion of assets under management,
supervision or fiduciary advice.
Van Kampen American Capital Distributors, Inc. specializes in the
underwriting and distribution of unit investment trusts and mutual funds with
roots in money management dating back to 1926. The Sponsor is a member of the
National Association of Securities Dealers, Inc. and has offices at One Parkview
Plaza, Oakbrook Terrace, Illinois 60181, (630) 684-6000 and 2800 Post Oak
Boulevard, Houston, Texas 77056, (713) 993-0500. It maintains a branch office in
Philadelphia and has regional representatives in Atlanta, Dallas, Los Angeles,
New York, San Francisco and Seattle. As of November 30, 1996, the total
stockholders' equity of Van Kampen American Capital Distributors, Inc. was
$129,451,000 (unaudited). (This paragraph relates only to the Sponsor and not to
the Trusts or to any other Series thereof. The information is included herein
only for the purpose of informing investors as to the financial responsibility
of the Sponsor and its ability to carry out its contractual obligations. More
detailed financial information will be made available by the Sponsor upon
request.)
As of September 30, 1997, the Sponsor and its Van Kampen American Capital
affiliates managed or supervised approximately $65.3 billion of investment
products, of which over $10.85 billion is invested in municipal securities. The
Sponsor and its Van Kampen American Capital affiliates managed $54 billion of
assets, consisting of $34.3 billion for 55 open-end mutual funds (of which 45
are distributed by Van Kampen American Capital Distributors, Inc.) $14.2 billion
for 37 closed-end funds and $5.5 billion for 106 institutional accounts. The
Sponsor has also deposited approximately $26 billion of unit investment trusts.
All of Van Kampen American Capital's open-end funds, closed-ended funds and unit
investment trusts are professionally distributed by leading financial firms
nationwide. Based on cumulative assets deposited, the Sponsor believes that it
is the largest sponsor of insured municipal unit investment trusts, primarily
through the success of its Insured Municipals Income Trust(R) or the IM-IT(R)
trust. The Sponsor also provides surveillance and evaluation services at cost
for approximately $13 billion of unit investment trust assets outstanding. Since
1976, the Sponsor has serviced over two million investor accounts, opened
through retail distribution firms.
If the Sponsor shall fail to perform any of its duties under the Trust
Agreement or become incapable of acting or shall become bankrupt or its affairs
are taken over by public authorities, then the Trustee may (i) appoint a
successor Sponsor at rates of compensation deemed by the Trustee to be
reasonable and not exceeding amounts prescribed by the Securities and Exchange
Commission, (ii) terminate the Trust Agreement and liquidate the Trusts as
provided therein or (iii) continue to act as Trustee without terminating the
Trust Agreement.
TRUSTEE. The Trustee is The Bank of New York, a trust company organized under
the laws of New York. The Bank of New York has its unit investment trust
division offices at 101 Barclay Street, New York, New York 10286 (800) 221-7668.
The Bank of New York is subject to supervision and examination by the
Superintendent of Banks of the State of New York and the Board of Governors of
the Federal Reserve System, and its deposits are insured by the Federal Deposit
Insurance Corporation to the extent permitted by law.
The duties of the Trustee are primarily ministerial in nature. It did not
participate in the selection of Equity Securities for the Trust portfolio.
In accordance with the Trust Agreement, the Trustee shall keep proper books
of record and account of all transactions at its office for the Trust. Such
records shall include the name and address of, and the number of Units of the
Trust held by, every Unitholder of the Trust. Such books and records shall be
open to inspection by any Unitholder at all reasonable times during the usual
business hours. The Trustee shall make such annual or other reports as may from
time to time be required under any applicable state or federal statute, rule or
regulation (see "Rights of Unitholders--Reports Provided"). The Trustee is
required to keep a certified copy or duplicate original of the Trust Agreement
on file in its office available for inspection at all reasonable times during
the usual business hours by any Unitholder, together with a current list of the
Equity Securities held in the Trust.
Under the Trust Agreement, the Trustee or any successor trustee may resign
and be discharged of its responsibilities created by the Trust Agreement by
executing an instrument in writing and filing the same with the Sponsor. The
Trustee or successor trustee must mail a copy of the notice of resignation to
all Unitholders then of record, not less than 60 days before the date specified
in such notice when such resignation is to take effect. The Sponsor upon
receiving notice of such resignation is obligated to appoint a successor trustee
promptly. If, upon such resignation, no successor trustee 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. The Sponsor may remove the Trustee and appoint a successor trustee as
provided in the Trust Agreement at any time with or without cause. Notice of
such removal and appointment shall be mailed to each Unitholder by the Sponsor.
Upon execution of a written acceptance of such appointment by such successor
trustee, all the rights, powers, duties and obligations of the original trustee
shall vest in the successor. The resignation or removal of a Trustee becomes
effective only when the successor trustee accepts its appointment as such or
when a court of competent jurisdiction appoints a successor trustee.
Any corporation into which a Trustee may be merged or with which it may be
consolidated, or any corporation resulting from any merger or consolidation to
which a Trustee shall be a party, shall be the successor trustee. The Trustee
must be a banking corporation organized under the laws of the United States or
any state and having at all times an aggregate capital, surplus and undivided
profits of not less than $5,000,000.
OTHER MATTERS
LEGAL OPINIONS. The legality of the Units offered hereby has been passed upon
by Chapman and Cutler, 111 West Monroe Street, Chicago, Illinois 60603, as
counsel for the Sponsor.
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS. The statement of condition and the
related securities portfolio included in this Prospectus have been audited by
Grant Thornton LLP, independent certified public accountants, as set forth in
their report in this Prospectus, and are included herein in reliance upon the
authority of said firm as experts in accounting and auditing.
No person is authorized to give any information or to make any representations
not contained in this Prospectus; and any information or representation not
contained herein must not be relied upon as having been authorized by the Trust,
the Sponsor or dealers. This Prospectus does not constitute an offer to sell, or
a solicitation of any offer to buy, securities in any state to any persons to
whom it is not lawful to make such offer in such state.
Table of Contents Page
----------------- ------
The Trust 2
Objectives and Securities Selection 2
Trust Portfolio 3
Risk Factors 3
Tax Status 4
Trust Operating Expenses 6
Public Offering 7
Rights of Unitholders 8
Trust Administration 10
Other Matters 12
This Prospectus contains information concerning the Fund and the Sponsor, but
does not contain all of the information set forth in the registration statements
and exhibits relating thereto, which the Fund has filed with the Securities and
Exchange Commission, Washington, D.C. under the Securities Act of 1933 and the
Investment Company Act of 1940, and to which reference is hereby made.
PROSPECTUS
PART TWO
SELECT TECHNOLOGY GROWTH TRUST,
SERIES 1
NOTE: THIS PROSPECTUS MAY BE USED ONLY WHEN
ACCOMPANIED BY PART ONE. BOTH PARTS OF THIS
PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE.
DATED AS OF THE DATE OF THE PROSPECTUS PART ONE
ACCOMPANYING THIS PROSPECTUS PART TWO.
GRUNTAL & CO., INCORPORATED
14 WALL STREET, 20TH FLOOR
NEW YORK, NEW YORK 10005
1-800-223-7623
CONTENTS OF POST-EFFECTIVE AMENDMENT TO REGISTRATION STATEMENT
This Post-Effective Amendment to the Registration Statement comprises the
following papers and documents:
The facing sheet
The prospectus
The signatures
The Consent of Independent Accountants
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
Van Kampen American Capital Equity Opportunity Trust, Series 19, certifies that
it meets all of the requirements for effectiveness of this Registration
Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly
caused this Post-Effective Amendment to its Registration Statement to be signed
on its behalf by the undersigned thereunto duly authorized, and its seal to be
hereunto affixed and attested, all in the City of Chicago and State of Illinois
on the 24th day of April, 1998.
VAN KAMPEN AMERICAN CAPITAL EQUITY OPPORTUNITY TRUST, SERIES 19
(Registrant)
By VAN KAMPEN AMERICAN CAPITAL DISTRIBUTORS, INC.
(Depositor)
By: Gina Costello
Assistant Secretary
(SEAL)
Pursuant to the requirements of the Securities Act of 1933, this Amendment
to the Registration Statement has been signed below on April 24, 1998 by the
following persons who constitute a majority of the Board of Directors of Van
Kampen American Capital Distributors, Inc.:
SIGNATURE TITLE
Don G. Powell Chairman and Chief )
Executive Officer )
John H. Zimmerman President and Chief Operating )
Officer )
Ronald A. Nyberg Executive Vice President and )
General Counsel )
William R. Rybak Senior Vice President and )
Chief Financial Officer )
Gina Costello_______
(Atttorney in Fact)*
____________________
* An executed copy of each of the related powers of attorney was filed with
the Securities and Exchange Commission in connection with the Registration
Statement on Form S-6 of Van Kampen American Capital Equity Opportunity Trust,
Series 64 (File No. 333-33087) and Van Kampen American Capital Equity
Opportunity Trust, Series 87 (File No. 333-44581) and the same are hereby
incorporated herein by this reference.
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We have issued our report dated March 13, 1998 accompanying the financial
statements of Van Kampen American Capital Equity Opportunity Trust, Series 19 as
of December 31, 1997, and for the period then ended, contained in this
Post-Effective Amendment No. 3 to Form S-6.
We consent to the use of the aforementioned report in the Post-Effective
Amendment and to the use of our name as it appears under the caption "Auditors".
Grant THORNTON LLP
Chicago, Illinois
April 24, 1998
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