Summary

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60	60	A significant portion of the results for this business is generated by commissions and fees from executing and clearing client transactions on major stock and derivative exchanges, as well as from OTC transactions. The company makes markets for the clients principally in equity-related securities and derivative products, including those that provide liquidity and are utilized for hedging. Market-making also generates gains and losses on inventory held to facilitate client activity, which are reflected in Trading revenues. Execution services also includes certain Investments and Other revenues.
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62		-Fixed Income Securit
	62	+=== Fixed Income Securities ===
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	64	+Morgan Stanley makes markets for their clients in interest rate, foreign exchange and emerging market products, including exchange-traded and OTC securities and derivative instruments. The company also makes
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64	64	== Wealth Management ==
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66	66	Wealth Management segment includes revenues from the distribution of newly issued securities. Morgan Stanley works as principal to the customers' purchases and sales of fixed income instruments. The company also manages the employees' deferred compensation plan from which it records gains and losses. Morgan Stanley earns commissions and fees from client transactions primarily in equity securities, insurance products, mutual funds, futures and options. The firm also earns revenues from order flow payments for directing customer orders to broker-dealers, exchanges and market centers for execution. This segment also include services associated with fee-based assets, account service and administration, as well as distribution of products. The company receives revenue for advisory services to these areas. The revenues generated from these services are generally based on the net asset value of the account in which a client is invested. Within the Wealth Management business segment, Interest income is driven by Investment securities, Loans and margin loans. Interest expense is driven by Deposits and other funding. Upon acquisition, E*TRADE’s Investment securities were recorded at fair value, and the resulting premium is being amortized over the life of the portfolio against interest income.