Morgan Stanley Income Securities Inc. (the Fund) is a diversified, closed-end management investment company. The Fund's primary investment objective is to provide as high a level of current income for distribution to shareholders as is consistent with prudent investment risk and, as a secondary objective, capital appreciation. The Fund uses derivative financial instruments (derivative instruments) for a range of purposes, including hedging, risk management, portfolio management or to earn income. Morgan Stanley Investment Management Inc. is the Fund's investment adviser. State Street Bank and Trust Company provides certain administrative services to the Fund.