15. Earnings per Common Share.

Calculation of Basic and Diluted Earnings Per Share (“EPS”).

				Three Months Ended
				March 31,
				2016		2015
				(in millions, except for per share data)
Basic EPS:
	Income from continuing operations		$	1,160	$	2,468
	Income (loss) from discontinued operations			(3)		(5)
	Net income			1,157		2,463
	Net income applicable to noncontrolling interests			23		69
	Net income applicable to Morgan Stanley			1,134		2,394
	Less: Preferred dividends			(78)		(78)
	Less: Allocation of (earnings) loss to participating RSUs(1)			(1)		(2)
	Earnings applicable to Morgan Stanley common shareholders		$	1,055	$	2,314
	Weighted average common shares outstanding			1,883		1,924
Earnings per basic common share:
	Income from continuing operations		$	0.56	$	1.21
	Income (loss) from discontinued operations			—		(0.01)
		Earnings per basic common share	$	0.56	$	1.20

Diluted EPS:
	Earnings applicable to Morgan Stanley common shareholders		$	1,055	$	2,314
	Weighted average common shares outstanding			1,883		1,924
	Effect of dilutive securities:
		Stock options and RSUs(1)		32		39
	Weighted average common shares outstanding and common stock equivalents			1,915		1,963

Earnings per diluted common share:
	Income from continuing operations		$	0.55	$	1.18
	Income (loss) from discontinued operations			—		—
		Earnings per diluted common share	$	0.55	$	1.18

_____________

(1) Restricted stock units (“RSUs”) that are considered participating securities participate in all of the earnings of the Company in the computation of basic EPS, and, therefore, such RSUs are not included as incremental shares in the diluted calculation.

Antidilutive Securities.

Securities that were considered antidilutive were excluded from the computation of diluted EPS.

Outstanding Antidilutive Securities at Period-End.