Morgan Stanley Company



Morgan Stanley Company

Introduction

Morgan Stanley is an American financial company that was founded on September 5, 1935 by Henry S. Morgan and Harold Stanley, as indicated on its website Morgan Stanley. It is one of the most prominent financial institutions of the United States that redefined the shape of financial services in the U.S. and beyond. The company has constantly broken new ground in advising our clients on strategic transactions, in pioneering the global expansion of finance and capital markets, and providing new opportunities for individual and institutional investors. Morgan Stanley joined the New York Stock Exchange NYSE in the year 1941. It quickly captured a large market share in the sector, and expanded its services with a division in charge of mergers and acquisitions in the year 1971 (www.morganstanley.com).

The institution caused a number of changes in the entire financial industry of the world, producing a long-term transformation to major and strategically significant transactions of finance and investments. Morgan Stanley is one of the three largest U.S. investment banks. The Company's business consists of four areas: management of corporate securities, state management, and asset management. In 2010, its assets totaled 826.7 billion dollars, equity of 49.6 billion dollars, and net profit of 4.46 billion dollars. In the first half of 2011, the bank's assets totaled 836.18 billion dollars, equity of 66.51, and net profit amounted 2.15 billion dollars (www.morganstanley.com). The company is divided into four divisions:

Management of corporate securities: increased capitalization, financial counseling (issues in mergers and acquisitions, restructurings, real estate and project finance), exchange activity (exchange trade, the formation of market shares and securities, fixed income securities, foreign currency trading, trade on commodity exchanges), risk management, research and investment, underwriting services.

Control of the states (wealth management): brokerage services and investment advice, financial planning and planning for the state, private wealth management, lending and other loan services, cash management, trust services.

Trust: trust management of securities, fixed income securities (bonds, preferred stock), alternative investments. The unit is presented under the brand names of Morgan Stanley and Van Kampen.

Discover Card: deals with credit cards and other consumer banking services, which are directly related to the servicing of credit cards. The unit works with the systems of Novus (MasterCard) and Visa (Martin & Fernando, 2010).

Discussion

Financial Industry

Morgan Stanley is one of the biggest and most active financial players in the U.S. financial marketplace. It is always regarded as a strong player with distinctive financial highlights that makes the company stand out in terms of financial efficacy and performance. Here, we present some of the key financial facts about the company before discussing its role in the United State's financial industry:

Strong Performance in Equity Sales and Trading

Distinctive Results in Fixed Income

Vigorous M&A Activity

Positive Net Flows in Global Wealth Management and

Asset Management

Loss of $655 Million in Japanese Securities Joint Venture (Roden & Christy, 2006).

(www.morganstanley.com)

Morgan Stanley released a report on its activities in the third quarter of 2011. The report says that the company reported strong financial results that were achieved after the reduction of debts of ...