The American Stock Exchange (Amex) has begun trading Morgan Stanley 10 per cent Stock Participation Accreting Redemption Quarterly-pay Securities ("SPARQS") on Apple.

These securities were issued at $15.975 per unit with a maturity date of September 15, 2005. When the securities mature, holders will receive one half of one share of Apple stock in exchange for each SPARQ, "subject to the issuer's right to call the SPARQS for the cash call price."

Morgan Stanley is issuing these securities through Amex.