Morgan Stanley 2015 Annual Report Download - page 44

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations.
Introduction.
Morgan Stanley, a financial holding company, is a global financial services firm that maintains significant market positions
in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan
Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified
group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the
context otherwise requires, the terms “Morgan Stanley” or the “Company” mean Morgan Stanley (the “Parent”) together
with its consolidated subsidiaries.
A description of the clients and principal products and services of each of the Company’s business segments is as follows:
Institutional Securities provides investment banking, sales and trading and other services to corporations, governments,
financial institutions, and high-to-ultra high net worth clients. Investment banking services comprise capital raising and
financial advisory services, including services relating to the underwriting of debt, equity and other securities as well as
advice on mergers and acquisitions, restructurings, real estate and project finance. Sales and trading services include
sales, financing and market-making activities in equity securities and fixed income products, including foreign
exchange and commodities, as well as prime brokerage services. Other services include corporate lending activities and
credit products, investments and research.
Wealth Management provides a comprehensive array of financial services and solutions to individual investors and
small-to-medium sized businesses and institutions covering brokerage and investment advisory services, market-
making activities in fixed income securities, financial and wealth planning services, annuity and insurance products,
credit and other lending products, banking and retirement plan services.
Investment Management provides a broad range of investment strategies and products that span geographies, asset
classes, and public and private markets, to a diverse group of clients across institutional and intermediary channels.
Institutional clients include defined benefit/defined contribution pensions, foundations, endowments, government
entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are
serviced through intermediaries, including affiliated and non-affiliated distributors. Strategies and products comprise
traditional asset management, including equity, fixed income, liquidity, alternatives and managed futures products as
well as merchant banking and real estate investing.
The results of operations in the past have been, and in the future may continue to be, materially affected by competition, risk
factors, legislative, legal and regulatory developments, as well as other factors. These factors also may have an adverse
impact on the Company’s ability to achieve its strategic objectives. Additionally, the discussion of the Company’s results of
operations below may contain forward-looking statements. These statements, which reflect management’s beliefs and
expectations, are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of the
risks and uncertainties that may affect the Company’s future results, see “Forward-Looking Statements” immediately
preceding Part I, Item 1, “Business—Competition” and “Business—Supervision and Regulation” in Part I, Item 1, “Risk
Factors” in Part I, Item 1A and “Liquidity and Capital Resources—Regulatory Requirements” herein.
38