Stock Stories Morgan Stanley (MS) - Wealth Management Powerhouse
Jul 3, 2023
Discover the fascinating evolution of Morgan Stanley, tracing its roots from the Glass-Steagall Act to strategic mergers like that with Dean Witter. Dive into its diverse business segments and financial performance, especially how it navigates market fluctuations. Learn about the company's approach to debt issuance, increasing cash dividends, and stock valuation that keeps investors intrigued.
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Morgan Stanley's Founding Story
- Morgan Stanley was founded in 1935 after the Glass-Steagall Act separated commercial and investment banking.
- It quickly gained significant market share, handling about 25% of Wall Street investment deals early on.
Diversification Through Mergers
- The Dean Witter merger helped Morgan Stanley diversify into retail markets, reducing volatility.
- Acquiring E-Trade and Eaton Vance expanded wealth and investment management sectors.
Morgan Stanley's Business Segments
- Morgan Stanley's business is split into investment banking, wealth management, and investment management.
- Wealth management and institutional securities each contribute about 45% to revenue, showing balanced revenue streams.