The Morgan Stanley Company's Investment Decisions - Thesis Example

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The purpose of this paper "The Morgan Stanley Company's Investment Decisions" is to illustrate the need for an investment company to observe ethics in cooperation with partners and customers, in order to avoid reputational risks and costs associated with the payment of compensation for lawsuits…
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The Morgan Stanley Companys Investment Decisions
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Download file to see previous pages The Morgan Stanley investments company offers facilities in the management of worldwide wealth, the offering of securities internationally along with management services for global investments by other companies (Venzin, 9). This, therefore, raises the question whether the investments company should expand its activities globally to include issues such as risk management, at a time that the global economy is recovering from the recent financial recession and experiencing slow growths? It was formed in the year 1935 as a response to the Glass-Steagall law, which required that commercial along with trade in investment banking is spilled. It dwells in serving varied conglomerates, governments, economic institutions along with affluent individuals (Venzin, 15). The company operates in around forty-two countries across the world and has over a thousand and three hundred offices around the globe. In their recent reports, the company was estimated to be managing or supervising assets owned by other companies that were worth over 287 American dollars. During their first year of operation, the company operated using an initial market share that was estimated at 24% of public offerings along with private placements. The company has not had a smooth transition throughout the years since it suffered a crisis in its management, which resulted in the company losing many of their staff members and the sacking of their senior chief officers about three months after (Venzin, 19).
Due to the introduction of the Glass-Steagall legislation in the year 1935, the Morgan Stanley Corporation was barred from investing in both the commercial along with the investment banking industries. The Corporation opted to indulge in the commercial sector thereby making some of its prominent members to leave the J.P Morgan Company in order to form the Morgan Stanley Corporation (Venzin, 39). The Corporation, in turn, began its operations in the month of September achieving a market share worth 24%, which was estimated at over a billion dollars of the total market in its public offerings. They involved themselves in distributing over a hundred million dollars in the form of debentures to several companies within the steel industry. The organization underwent several reforms to facilitate the performance of more operations in their business of providing securities. It additionally won several major contracts such as the financing of the American railway system in the year 1941 and the provision of steel to the majority of the American industries (Venzin, 41). ...Download file to see next pagesRead More
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