WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE. <ARTICLE> BD <LEGEND> This schedule contains summary financial information extracted from the Morgan Keegan, Inc. Form 10-Q for the period ended October 31, 1995 and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> QTR-1 <FISCAL-YEAR-END> JUL-31-1996 <PERIOD-END> OCT-31-1995 <CASH> 11,708 <RECEIVABLES> 300,837 <SECURITIES-RESALE> 281,404 <SECURITIES-BORROWED> 21,401 <INSTRUMENTS-OWNED> 299,053 <PP&E> 13,738 <TOTAL-ASSETS> 957,353 <SHORT-TERM> 170,042 <PAYABLES> 486,132 <REPOS-SOLD> 31,862 <SECURITIES-LOANED> 2,165 <INSTRUMENTS-SOLD> 57,471 <LONG-TERM> 0 <COMMON> 12,580 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 134,403 <TOTAL-LIABILITY-AND-EQUITY> 957,353 <TRADING-REVENUE> 29,203 <INTEREST-DIVIDENDS> 9,542 <COMMISSIONS> 15,351 <INVESTMENT-BANKING-REVENUES> 11,512 <FEE-REVENUE> 3,332 <INTEREST-EXPENSE> 5,131 <COMPENSATION> 37,243 <INCOME-PRETAX> 14,230 <INCOME-PRE-EXTRAORDINARY> 14,230 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 8,830 <EPS-PRIMARY> 0.44 <EPS-DILUTED> 0.44