MORGANSTANLEY

MORGAN STANLEY
Morgan Stanley (NYSE: MS) is an American multinational financial services corporation headquartered in the Morgan Stanley Building Midto!n Manhattan Ne! Yor" #ity $%& serving a diversified group of corporations governments financial institutions and individuals' Morgan Stanley operates in () countries and has more than *%++ offices and ,+ +++ employees' $(& -he company reports .S/%+( 0illion in assets under management or supervision'$)& -he corporation formed 0y 1'2' Morgan 3 #o' partners 4enry S' Morgan (grandson of 1'2' Morgan) 4arold Stanley and others came into e5istence on Septem0er *, *6%7 in response to the 8lass9Steagall Act that required the splitting of commercial and investment 0an"ing 0usinesses' :n its first year the company operated !ith a )(; mar"et share (.S/*'* 0illion) in pu0lic offerings and private placements' -he main areas of 0usiness for the firm today are 8lo0al <ealth Management :nstitutional Securities and :nvestment Management' -he company found itself in the midst of a management crisis starting in March )++7$7& that resulted in a loss of a num0er of the firm=s staff $,& and ultimately sa! the firing of its then #E> 2hilip 2urcell three months later' Definition of Investment Banker: A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Investment Banker maintain 0ro"er?dealer operations maintain mar"ets for previously issued securities and offer advisory services to investors
Meaning of Investment Banking: Investment banking is a field of banking that aids companies in acquiring funds. In addition to the acquisition of new funds, investment banking also offers advice for a wide range of transactions a company might engage in. An investment banking firm also does a large amount of consulting. Investment bankers give companies advice on mergers and acquisitions, for example. hey also track the market in order to give advice on when to make public offerings and how best to manage the business! public assets. "ome of the consultative activities investment banking firms engage in overlap with those of a private brokerage, as they will often give buy#and#sell advice to the companies they represent. hrough investment banking, an institution generates funds in two different ways. hey may
draw on public funds through the capital market by selling stock in their company, and they may also seek out venture capital or private equity in exchange for a stake in their company. .nli"e commercial 0an"s and retail 0an"s investment 0an"s do not ta"e deposits. #orporate finance is the traditional aspect of investment 0an"s !hich also involves helping customers raise funds in capital mar"ets and giving advice on mergers and acquisitions
:nvestment 0an"s help companies raise money 0y:
Lending their expertise to a company to help it determine the 0est strategy and the 0est place to raise either de0t or equity capital' Preparing all the necessary documents to accurately present the value proposition for funding and to protect 0oth the company and the investor from any misunderstandings' -his is more than @ust a 0usiness plan' 8ood investment 0an"s prepare something called a private placement memorandum99or 22M99 !hich is a legal document designed to protect 0oth sides from ma"ing a 0ad investment'
Ensuring that all government regulations have been followed in the raising of any capital' -ypically entrepreneurs raise capital in !ays that violate SE# and NASA rules they didn=t even "no! e5isted' Such ignorance could come 0ac" to 0ite them'
Investment Banking Services

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Mergers and !c"uisitions # Mergers and Acquisitions refers to consolidation of companies' A merger is a com0ination of t!o companies to form a ne! company !hile an acquisition is the purchase of one company 0y another in !hich no ne! company is formed' Bor eg: An e5ample of a ma@or merger is the merging of 1AS Bitel :nc' and .niphase #orp' in *666 to form 1AS .niphase'
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An e5ample of a ma@or acquisition is Manulife Binancial #orporation=s )++( acquisition of 1ohn 4ancoc" Binancial Services :nc' Market Making $ A Cmar"et ma"erC is a firm that stands ready to 0uy and sell a particular stoc" on a regular and continuous 0asis at a pu0licly quoted price' -he Nasdaq is the prime e5ample of an operation of mar"et ma"ers' %erivatives &rading Instrument $ Aerivatives are one type of securities !hose price is derived from the underlying assets' And value of these derivatives is determined 0y the fluctuations in the underlying assets' -hese underlying assets are most commonly stoc"s 0onds currencies interest rates commodities and mar"et indices' 'oreign Exchange $ -he e5change of one currency for another or the conversion of one currency into another currency' Boreign e5change also refers to the glo0al mar"et !here currencies are traded virtually around9the9cloc"' (ommodities $ A physical or virtual mar"etplace for 0uying selling and trading ra! or primary products' #ommodities are split into t!o types: hard and soft commodities' 4ard commodities are typically natural resources that must 0e mined or e5tracted (gold ru00er oil etc') !hereas soft commodities are agricultural products or livestoc" (corn !heat coffee sugar soy0eans por" etc') There are numerous ways to
invest in commodities. The most direct way of investing in commodities is by buying into a futures contract.

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MORGAN STANLEY

:nvestment 0an"s help companies raise money 0y:

Investment Banking Services

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