Morgan Stanley 2009 Annual Report Download - page 7

Investment Banking and Corporate Lending Activities.
Financial Advisory Services. Morgan Stanley provides corporate and other institutional clients globally with
advisory services on key strategic matters, such as mergers and acquisitions, divestitures, joint ventures,
corporate restructurings, recapitalizations, spin-offs, exchange offers and leveraged buyouts and takeover
defenses as well as shareholder relations. Morgan Stanley also provides advice concerning rights offerings,
dividend policy, valuations, foreign exchange exposure, financial risk management strategies and financial
planning. In addition, Morgan Stanley furnishes advice and services regarding project financings and provides
advisory services in connection with the purchase, sale, leasing and financing of real estate.
Capital Raising. Morgan Stanley manages and participates in public offerings and private placements of debt,
equity and other securities worldwide. Morgan Stanley is a leading underwriter of common stock, preferred stock
and other equity-related securities, including convertible securities and American Depositary Receipts (“ADRs”).
Morgan Stanley is a leading underwriter of fixed income securities, including investment grade debt,
non-investment grade instruments, mortgage-related and other asset-backed securities, tax-exempt securities and
commercial paper and other short-term securities.
Corporate Lending. Morgan Stanley provides loans or lending commitments, including bridge financing, to
selected corporate clients through subsidiaries, including Morgan Stanley Bank, N.A. These loans and
commitments have varying terms, may be senior or subordinated and/or secured or unsecured, are generally
contingent upon representations, warranties and contractual conditions applicable to the borrower and may be
syndicated, hedged or traded by Morgan Stanley*. The borrowers may be rated investment grade or
non-investment grade.
Sales and Trading Activities.
Morgan Stanley conducts sales, trading, financing and market-making activities on securities and futures
exchanges and in over-the-counter (“OTC”) markets around the world. Morgan Stanley’s Institutional Securities
sales and trading activities include Equity Trading; Interest Rates, Credit and Currencies; Commodities; and
Clients and Services.
Equity Trading. Morgan Stanley acts as principal (including as a market maker) and agent in executing
transactions globally in equity and equity-related products, including common stock, ADRs, global depositary
receipts and exchange-traded funds.
Morgan Stanley’s equity derivatives sales, trading and market-making activities cover equity-related products
globally, including equity swaps, options, warrants and futures overlying individual securities, indices and
baskets of securities and other equity-related products. Morgan Stanley also issues and makes a principal market
in equity-linked products to institutional and individual investors.
Interest Rates, Credit and Currencies. Morgan Stanley trades, makes markets and takes long and short
proprietary positions in fixed income securities and related products globally, including, among other products,
investment and non-investment grade corporate debt, distressed debt, bank loans, U.S. and other sovereign
securities, emerging market bonds and loans, convertible bonds, collateralized debt obligations, credit, currency
and other fixed income-linked notes, and securities issued by structured investment vehicles, mortgage-related
and other asset-backed securities and real estate-loan products, municipal securities, preferred stock and
commercial paper, money-market and other short-term securities. Morgan Stanley is a primary dealer of U.S.
Federal Government securities and a member of the selling groups that distribute various U.S. agency and other
debt securities. Morgan Stanley is also a primary dealer or market maker of government securities in numerous
European, Asian and emerging market countries.
* Revenues and expenses associated with the trading of syndicated loans are included in “Sales and Trading Activities.”
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