|
| 7 Year Capital Protected Note linked to |
| a Basket of Indices |
| Final Terms as of December 1, 2006 |
| Filed pursuant to Rule 433 |
| Registration Statement No. 333-131266 |
| Relating to Pricing Supplement No. 159 |
| dated December 1, 2006 |
| Overview |
| Offering of Capital Protected Medium Term Notes (the “Notes”) issued by Morgan Stanley that provides exposure to the performance of a Basket of Indices consisting of the (i) S&P 500 Index, (ii) the Russell 2000 Index and the (iii) MSCI EAFE Index (the “Basket”). At maturity, these Notes will mature for 100% of the Original Issue Price plus an additional amount, if any, based on the performance of the Basket. |
| Key Dates |
| Pricing Date: | December 1, 2006 |
| Issue Date: | December 11, 2006 |
| Maturity Date: | December 11, 2013, subject to postponement in the event of certain market disruption events |
| Key Terms |
| Underlying Basket Index: | Weighting | Multiplier | Initial Closing Value | Bloomberg Page |
| S&P 500
Index (“SPX”) Russell 2000 Index (“RTY”) MSCI EAFE Index (“MXEA”) |
40% 30% 30% |
0.286387296 0.384039326 0.149180255 |
1396.71 781.17 2010.99 |
SPX RTY MXEA |
| Aggregate Principal Amount: | $16,000,000 | |||
| Issue Price: | $1,000 per Note (Par) | |||
| Interest: | None | |||
| Call Feature: | None | |||
| Payment at Maturity: | Par plus the Supplemental Redemption Amount | |||
| Supplemental Redemption Amount: | Par x Basket Percent Change x Participation Rate; provided that the Supplemental Redemption Amount will not be less than zero. | |||
| Participation Rate: | 119% | |||
| Basket Percent Change: | (Final
Basket Value Initial
Basket Value) Initial Basket Value |
|||
| The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-584-6837. |
| Prospectus Supplement for Capital Protected Notes dated March 14, 2006 |
| Prospectus dated January 25, 2006 |
|
| 7 Year Capital Protected Note linked to |
| a Basket of Indices |
| Final Terms as of December 1, 2006 |
Initial Basket Value: |
1,000, the Basket Closing Value used to determine the multipliers on the Basket Setting Date. On the Basket Setting Date, the Calculation Agent will determine the fractional value of each Basket Index by calculating a multiplier so that each Basket Index will represent its applicable percentage weighting in the Initial Basket Value. The multiplier for each Basket Index will remain constant for the term of the Notes. |
Basket Closing Value: |
The sum of the products of the index closing value of each of the Basket Indices and the applicable multiplier for each of the Basket Indices. |
| Basket Setting Date: | The Pricing Date |
| Final Basket Value: | The Basket Closing Value on the Determination Date. |
Determination Date: |
December 9, 2013, subject to postponement in the event of certain market disruption events |
| Calculation Agent: | Morgan Stanley & Co. Incorporated |
| Denominations: | $1,000 and in integral multiples thereof |
Tax Considerations: |
You are urged to consult your own tax advisors regarding all aspects of the U.S. federal income tax consequences of investing in the notes as well as any tax consequences arising under the laws of any state, local or foreign taxing jurisdiction. |
| General Information |
| Issuance Format: | Registered |
| Agent: | Morgan Stanley & Co. Incorporated |
| Listing: | None |
| CUSIP: | 61746SDC0 |
Settlement: |
Book Entry / DTC |