Morgan Stanley is a leading global investment bank and wealth management firm. Over the years, the firm has continued to perform well in the market. This begs the question; how does Morgan Stanley make money today?
As a company, Morgan Stanley provides products and services to individuals as well as businesses.
Since its founding in 1935, Morgan Stanley has grown in reaps and bounds. This might make you wonder how the investment firm makes most of its money.
Like me, I know you are keen to know how Morgan Stanley makes money, especially in today’s competitive market.
Today is your lucky day.
In this article, you are going to learn and understand, in-depth how Morgan Stanley makes money.
You will know how its business model helps the firm to generate revenues and make a profit.
Sit down and let us discuss this in details.
How Does Morgan Stanley Make Money?
When it comes to how Morgan Stanley makes money, it does that in three ways;
- Institutional Banking
- Wealth Management
- Investment Management
Out of these three sources of revenues, institutional banking is the largest money making unit for the Morgan Stanley.
Morgan Stanley shares a name, or part of it with JP Morgan Chase.
It is not a coincidence.
As you might imagine, the two share family ties. Morgan Stanley is the grandson of JP Morgan.
Clearly, the ‘Morgan’ family truly likes money-related businesses.
Morgan Stanley was created as an investment bank, but it currently has a very strong commercial banking operation.
The bank makes and earns profits by acting as a market maker for customer’s purchases and sales of financial instruments.
When it comes to investment banking, Morgan Stanley generates money from charging fees on advisory services.
Given the line of business, Morgan Stanley operates in, you can bet that it will continue to make money into the future.
Companies will continue to raise money, and investment banking firms like Morgan Stanley will make money raising the investment funds.