Part I

Page

Item 1.

Business

1

Overview

1

Available Information

1

Institutional Securities

2

Individual Investor Group

4

Investment Management

5

Credit Services

6

Competition

7

Regulation

8

Executive Officers of Morgan Stanley

11

Item 2.

Properties

12

Item 3.

Legal Proceedings

12

Item 4.

Submission of Matters to a Vote of Security Holders

17

Part II

Item 5.

Market for Registrant’s Common Equity and Related Stockholder Matters

17

Item 6.

Selected Financial Data

18

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

61

Item 8.

Financial Statements and Supplementary Data

73

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

119

Part III

Item 10.

Directors and Executive Officers of the Registrant

119

Item 11.

Executive Compensation

119

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

119

Item 13.

Certain Relationships and Related Transactions

120

Item 14.

Controls and Procedures

120

Part IV

Item 15.

Exhibits, Financial Statement Schedules and Reports on Form 8-K

121

Signatures

122

Certifications

124

Index to Financial Statements and Financial Statement Schedules

S-1

Exhibit Index

E-1