424B3 1 f424b3_080706-retail.txt PROSPECTUS SUPPLEMENT PROSPECTUS SUPPLEMENT REGISTRATION NO. 333-54662 (To Prospectus dated February 17, 2006) Filed Pursuant to Rule 424(b)(3) [HOLDRS RETAIL LOGO] 1,000,000,000 Depositary Receipts Retail HOLDRS (SM) Trust This prospectus supplement supplements information contained in the prospectus dated February 17, 2006 relating to the sale of up to 1,000,000,000 depositary receipts by the Retail HOLDRS (SM) Trust. The share amounts specified in the table in the "Highlights of Retail HOLDRS" section of the base prospectus shall be replaced with the following:
Primary Share Trading Name of Company Ticker Amounts Market ---------------------------------------------- ------ ------- ------ Amazon.com, Inc. AMZN 7 NASDAQ Best Buy Co., Inc. BBY 9 NYSE Costco Wholesale Corporation COST 8 NASDAQ CVS Corporation CVS 14 NYSE Federated Department Stores FD 11.738 NYSE Kohl's Corporation KSS 6 NYSE Limited Brands, Inc. LTD 8 NYSE Lowe's Companies, Inc.(1) LOW 14 NYSE RadioShack Corporation RSH 3 NYSE Safeway Inc. SWY 9 NYSE SUPERVALU INC.(2) SVU 1.456 NYSE Target Corporation TGT 16 NYSE The Gap, Inc. GPS 16 NYSE The Home Depot, Inc. HD 40 NYSE The Kroger Co. KR 15 NYSE The TJX Companies, Inc. TJX 10 NYSE Walgreen Co. WAG 19 NYSE Wal-Mart Stores, Inc. WMT 36 NYSE
(1) The quantity of shares of Lowe's Companies, Inc. (NYSE: "LOW") represented by each 100 share round lot of Retail HOLDRS has increased to 28 shares (from 14) due to a 2 for 1 stock split. Therefore, effective July 7, 2006 deposits of Lowe's Companies, Inc. common stock for the creation of Retail HOLDRS increased to 28 shares. (2) As a result of the merger between SUPERVALU INC. (NYSE: "SVU") and Albertson's, Inc., (NYSE: ABS) effective June 2, 2006, SUPERVALU INC. replaced Albertson's, Inc. as an underlying security of the Retail HOLDRS. For the 8 shares of Albertson's, Inc. per 100 shares round lot of Retail HOLDRS, The Bank of New York received 1.456 shares of SUPERVALU INC. and $162.80 in cash. The Bank of New York distributed the cash on June 13, 2006 at a rate of $1.628 per depositary share of Retail HOLDRS. 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 June 30, 2006.