Frequently Asked Questions About the TSC E-Commerce Index

For more information about TheStreet.com's indices, please see Frequently Asked Questions About the TSC Internet Sector Index and Frequently Asked Questions About the TSC E-Finance Index.

What is TheStreet.com E-Commerce Index?

TheStreet.com E-Commerce Index is an index that tracks the performance of a group of electronic commerce stocks. It is neither a mutual fund nor a stock.

What is the ticker symbol for TheStreet.com E-Commerce Index?

The ticker symbol is ICX. Quotes are available through TheStreet.com's Tools/Quotes section under the symbol ICX^X. A snapshot of quotes on all 18 index components is available here.

What is an index?

Similar to the S&P 500, the Dow Jones Industrial Average or the Russell 2000, TheStreet.com E-Commerce Index measures the average performance of a group of stocks, in this case in a certain part of the economy. This index tracks the average value of a basket of 18 e-commerce stocks.

Do any mutual funds track TheStreet.com E-Commerce Index?

No index funds currently track TheStreet.com E-Commerce Index, but options based on the index have been available since Feb. 17, 1999.

How do I find more information about options based on TheStreet.com E-Commerce Index?

Your broker/dealer will be able to help you find more information about the options, which trade on the American Stock Exchange. You can reach the Amex on the Web at www.amex.com. TheStreet.com is not involved in the trading of the options and makes no profit from options trades.

What companies make up TheStreet.com E-Commerce Index?

TheStreet.com E-Commerce Index is an equal-weighted measure of these 20 prominent e-commerce players, which generate all or a significant portion of their revenue from commerce conducted over the Internet:

• Amazon.com (AMZN)
• Barnes & Noble.com (BNBN)
• BroadVision (BVSN)

• CNet (CNET)
• Cyberian Outpost (COOL)
• Digital River (DRIV)
• drugstore.com (DSCM)
• eBay (EBAY)

• Egghead.com (EGGS)
• eToys (ETYS)
• E*Trade (EGRP)
• Expedia (EXPE)
• Homestore.com (HOMS)
• Network Commerce (NWKC)

• priceline.com (PCLN)
• PurchasePro.com (PPRO)
• Stamps.com (STMP)
• Ticketmaster Online-CitySearch (TMCS)
• Travelocity.com (TVLY)
• Webvan (WBVN)

The list of companies is subject to change at any time. It will be reviewed every quarter to ensure that it continues to represent the e-commerce sector accurately.

What is the relationship of TheStreet.com E-Commerce Index and TheStreet.com Internet Sector index?

TheStreet.com E-Commerce Index is a complement to TheStreet.com Internet Sector index, not a replacement for it. TheStreet.com Internet Sector index is an index of 20 Internet stocks, traded on the Philadelphia Stock Exchange under the symbol DOT. The DOT includes many types of Internet companies that are not part of the ICX, including search engines or portals, Internet service providers, Net security companies and Web services companies. E-commerce companies are one slice of the Internet pie, and we feel TheStreet.com E-Commerce will be a great benchmark for the performance of e-commerce companies, while the DOT will continue to represent the performance of the broader Internet sector.

Does TheStreet.com recommend that I invest in these index options, or in the companies that make up TheStreet.com E-Commerce Index?

TheStreet.com does not make investment recommendations of any kind.

Performance of TheStreet.com E-Commerce Index has recently been more volatile than many other segments of the economy. Investing in index options like this one involves substantial risks, and individual investors in index options may be in direct competition with professional investors. For individual investors, the index may be more useful as a source of information than a direct trading opportunity. More information about some of the unique risks inherent in trading index options can be found at http://www.optionsclearing.com/publications/riskstock/riskchap10.htm.

What other resources are available on TSC and elsewhere on the Web?

More information on options is available in TSC's Investing Basics section, the TSC Options Forum, which appears Saturdays, and the daily TSC Options Buzz column.

More information about options can also be found at the American Stock Exchange site, and the Options Industry Council's resource page.

What does a TheStreet.com E-Commerce Index quote mean in relative terms?

For comparison, the index was created with a base value of 75.00 on Dec. 1, 1998. It finished Dec. 31, 1998, at 85.10. Had it been trading Dec. 31, 1997, it would have closed at 25.99.

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