424B3 1 ss50404_424b3-internet.htm
PROSPECTUS SUPPLEMENT
REGISTRATION NO.  333-78575
(To Prospectus dated August 15, 2007)
Filed Pursuant to Rule 424(b)(3)


 


1,000,000,000 Depositary Receipts
Internet HOLDRS (SM) Trust

This prospectus supplement supplements information contained in the prospectus dated August 15, 2007 relating to the sale of up to 1,000,000,000 depositary receipts by the Internet HOLDRS (SM) Trust.
 
The share amounts specified in the table in the “Highlights of Internet HOLDRS” section of the base prospectus shall be replaced with the following:
 
Name of Company1
  
Ticker
  
Share
Amounts
  
Primary
Trading
Market
Amazon.com, Inc.
  
AMZN
  
18
  
NASDAQ
EarthLink, Inc.
  
ELNK
  
6.23
  
NASDAQ
eBay Inc.
  
EBAY
  
48
  
NASDAQ
E*TRADE Financial Corporation
  
ETFC
  
12
  
NASDAQ
McAfee, Inc.
  
MFE
  
7
  
NYSE
Moduslink Global Solutions, Inc2
  
MLNK
  
1
  
NASDAQ
Priceline.com Incorporated
  
PCLN
  
1.1667
  
NASDAQ
RealNetworks, Inc.
  
RNWK
  
8
  
NASDAQ
TD Ameritrade HLDG Corp.
  
AMTD
  
9
  
NASDAQ
Time Warner Inc.
  
TWX
  
42
  
NYSE
Yahoo! Inc.
  
YHOO
  
52
  
NASDAQ

 
The share amounts listed in the table above reflect all previous stock splits, dividends and business combination transactions.
 
The date of this prospectus supplement is September 30, 2008.


1           Effective July 1, 2008, pursuant to the merger of CNET Networks, Inc. and CBS Corporation, CNET Networks, Inc. will no longer be an underlying constituent of the Internet HOLDRS Trust.  For each share of Cnet Networks, Inc., shareholders received $11.50 in cash.  For the 4 shares of CNET Networks, Inc. per 100 share round lot of Internet HOLDRS, The Bank of New York Mellon received $46.00.  The Bank of New York Mellon will distributed cash at a rate of $0.46 per depositary share of Internet HOLDRS. The record date for the distribution was July 10, 2008 and the payable date was July 28, 2008.
 
2           Effective September 30, 2008, CMGI Inc., an underlying constituent of the Internet HOLDRS Trust, changed its name to ModusLink Global Solutions Inc.  As a result, ModusLink Global Solutions Inc. replaced CMGI Inc. as an underlying constituent of the Internet HOLDRS Trust.