<ARTICLE> BD <LEGEND> This schedule contains summary financial information extracted from the Morgan Keegan, Inc. Form 10-Q for the period ended October 31, 1996 and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-1997 <PERIOD-END> OCT-31-1996 <CASH> 12,982 <RECEIVABLES> 337,049 <SECURITIES-RESALE> 349,774 <SECURITIES-BORROWED> 13,022 <INSTRUMENTS-OWNED> 410,134 <PP&E> 41,087 <TOTAL-ASSETS> 1,199,968 <SHORT-TERM> 261,527 <PAYABLES> 543,760 <REPOS-SOLD> 62,098 <SECURITIES-LOANED> 3,751 <INSTRUMENTS-SOLD> 83,103 <LONG-TERM> 19,908 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 12,768 <OTHER-SE> 162,794 <TOTAL-LIABILITY-AND-EQUITY> 1,199,968 <TRADING-REVENUE> 28,104 <INTEREST-DIVIDENDS> 14,734 <COMMISSIONS> 16,413 <INVESTMENT-BANKING-REVENUES> 9,368 <FEE-REVENUE> 5,796 <INTEREST-EXPENSE> 10,336 <COMPENSATION> 37,494 <INCOME-PRETAX> 11,749 <INCOME-PRE-EXTRAORDINARY> 11,749 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 7,349 <EPS-PRIMARY> 0.36 <EPS-DILUTED> 0.36