Morgan Stanley 2010 Annual Report Download - page 9

Investment Banking and Corporate Lending Activities.
Capital Raising. The Company manages and participates in public offerings and private placements of debt,
equity and other securities worldwide. The Company is a leading underwriter of common stock, preferred stock
and other equity-related securities, including convertible securities and American Depositary Receipts (“ADRs”).
The Company is also 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.
Financial Advisory Services. The Company 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. The Company also provides advice concerning rights offerings,
dividend policy, valuations, foreign exchange exposure, financial risk management strategies and financial
planning. In addition, the Company furnishes advice and services regarding project financings and provides
advisory services in connection with the purchase, sale, leasing and financing of real estate.
Corporate Lending. The Company provides loans or lending commitments, including bridge financing, to
selected corporate clients through its subsidiaries, including Morgan Stanley Bank, N.A (“MSBNA”). 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 the Company*. The borrowers may be rated investment grade or
non-investment grade.
Sales and Trading Activities.
The Company conducts sales, trading, financing and market-making activities on securities and futures
exchanges and in over-the-counter (“OTC”) markets around the world. The Company’s Institutional Securities
sales and trading activities include Equity Trading; Interest Rates, Credit and Currencies; Commodities; Clients
and Services; and Investments.
Equity Trading. The Company 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.
The Company’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. The Company also issues and makes a principal market in
equity-linked products to institutional and individual investors.
Interest Rates, Credit and Currencies. The Company trades, invests and makes markets 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, interest rate and other fixed income-
linked notes, 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. The Company 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. The Company is
also a primary dealer or market-maker of government securities in numerous European, Asian and emerging
market countries.
The Company trades, invests and makes markets globally in listed futures and OTC swaps, forwards, options and
other derivatives referencing, among other things, interest rates, currencies, investment grade and non-investment
grade corporate credits, loans, bonds, U.S. and other sovereign securities, emerging market bonds and loans,
* Revenues and expenses associated with the trading of syndicated loans are included in “Sales and Trading
Activities.”
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