Morgan Stanley
From ArticleWorld
Morgan Stanley has the distinction of being an industry leader in many financial fields like equity and debt underwriting as well as investment banking too. The goodwill and trust the company has gathered from the course of time, has made the company a pioneer and a leader, thereby earning the brand name “Morgan Stanley” as its most valuable asset.
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History
Morgan Stanley was started as a joint venture between Henry S. Morgan and Harold Stanley. The company had set up office in New York on the 5th sep.1935. After the Glass-Steagall Act was implicated the divisions of business of commercial and investment banks came up. In the first year of commencement, Morgan Stanley acquired 24% of the total market share on public offerings. The business of Mergers and Acquisitions along with Sales & Trading was completed by 1971, and the company became a public listed company.
Merger
A merger took place between Morgan Stanley and Dean Witter, Discover & Co., in the year 1997 and in turn named the new entity Morgan Stanley Dean Witter & Co., was to last till the year2001. The name Dean Witter was later dropped and the company name was finally changed to “Morgan Stanley”, thus dubbing the merger as controversial. In the process the blue chip status was partially damaged in the corporate clientele circle.
Operations
Morgan Stanley operates in four major business units:
- Institutional Securities: This unit deals in equity as well as fixed income investments, for trading and selling for the institutions and corporate.
- Individual Investors Group: This unit handles private wealth management, financial planning etc.
- Investment Management: This unit deals in investment banking services like advising, securities and underwriting.
- Credit Services: The service provided by this unit is to facilitate credit for various financial services.
Competitors
The major competitors of Morgan Stanley are Merrill Lynch, Citigroup, Goldman Sachs, Deutsche Bank and Credit Suisse and many more.