31.   Foreign investors need a license to trade the won which they trade against a limited group of underlying Korean securities such as five-year bonds and stocks.

32.   In those days, closed-end fund investors frequently paid more than the total value of the underlying securities.

33.   Most of those losses came as investors tried to use leveraged derivatives created by Wall Street to magnify their returns beyond those paid by the underlying securities.

34.   Options are contracts that grant investors the right to buy or sell the underlying security at a predetermined price and time.

35.   Part of the problem is derivatives, the increasingly common instruments whose value is linked to an underlying security, index or interest rate.

36.   That made it one of the first financial derivatives -- instruments whose value is derived from the prices of underlying securities.

37.   That allows for the issuance of options to call back Remic securities after a given period and break them into their underlying securities.

38.   The federal income-tax laws treat owners of the HOLDRs as directly owning the underlying securities.

39.   The HOLDRs will not result in any federal tax consequences separate from the tax consequences associated with the ownership of the underlying securities, says each HOLDRs prospectus.

40.   The exchange would start with index futures, then go on to options on underlying securities, Erkan said.