<PAGE> PAGE 1
000 B000000 11/30/98
000 C000000 0001005459
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 PRUDENTIAL DISTRESSED SECURITIES FUND,INC.
001 B000000 811-07491
001 C000000 9733677503
002 A000000 100 MULBERRY ST., GATEWAY CENTER 3
002 B000000 NEWARK
002 C000000 NJ
002 D010000 07102
002 D020000 4077
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 PRUDENTIAL INVESTMENTS FUND MANAGEMENT LLC
008 B000001 A
008 C000001 801-31104
008 D010001 NEWARK
008 D020001 NJ
008 D030001 07102
008 D040001 4077
008 A000002 THE PRUDENTIAL INVESTMENT CORPORATION
008 B000002 S
008 C000002 801-12484
008 D010002 NEWARK
008 D020002 NJ
008 D030002 07101
011 A000001 PRUDENTIAL SECURITIES INCORPORATED
011 B000001 8-27154
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10292
<PAGE> PAGE 2
011 A000002 PRUDENTIAL INVESTMENT MANAGEMENT SERVICES LLC
011 B000002 8-27154
011 C010002 NEW YORK
011 C020002 NY
011 C030002 10292
012 A000001 PRUDENTIAL MUTUAL FUND SERVICES LLC
012 B000001 84-410019
012 C010001 NEWARK
012 C020001 NJ
012 C030001 07101
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10036
014 A000001 PRUDENTIAL INVESTMENT MANAGEMENT SERVICES LLC
014 B000001 8-27154
014 A000002 PRUDENTIAL SECURITIES INCORPORATED
014 B000002 8-27154
015 A000001 STATE STREET BANK AND TRUST CO.
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02171
015 E010001 X
015 A000002 CITIBANK, N.A.
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 E040002 X
015 A000003 WESTPAC BANKING CORP.
015 B000003 S
015 C010003 SYDNEY
015 D010003 AUSTRALIA
015 E040003 X
015 A000004 GIROCREDIT BANK AKTIENGESELLSCHAFT DER SPARKA
015 B000004 S
015 C010004 VIENNA
015 D010004 AUSTRIA
015 E040004 X
015 A000005 GENERALE BANK
015 B000005 S
015 C010005 BRUSSELS
015 D010005 BELGIUM
015 E040005 X
015 A000006 CITIBANK, N.A.
015 B000006 S
015 C010006 SAO PAULO
015 D010006 BRAZIL
015 E040006 X
015 A000007 CANADA TRUSTCO MORTGAGE COMPANY
015 B000007 S
<PAGE> PAGE 3
015 C010007 TORONTO
015 D010007 CANADA
015 E040007 X
015 A000008 CITIBANK, N.A.
015 B000008 S
015 C010008 SANTIAGO
015 D010008 CHILE
015 E040008 X
015 A000009 THE HONGKONG AND SHANGHAI BANKING CORP., INC.
015 B000009 S
015 C010009 SHANGHAI
015 D010009 CHINA
015 E040009 X
015 A000010 CITITRUST COLUMBIA S.A. SOCIEDAD FIDUCIARIA
015 B000010 S
015 C010010 BOGOTA
015 D010010 COLUMBIA
015 E040010 X
015 A000011 CESKOCLOVENSKA ONCHODNI BANKA A.S.
015 B000011 S
015 C010011 PRAGUE
015 D010011 CZECH REPUBLIC
015 E040011 X
015 A000012 DEN DANSKE BANK
015 B000012 S
015 C010012 COPENHAGEN
015 D010012 DENMARK
015 E040012 X
015 A000013 MERITA BANK LIMITED
015 B000013 S
015 C010013 HELSINKI
015 D010013 FINLAND
015 E040013 X
015 A000014 BANQUE PARIBAS
015 B000014 S
015 C010014 PARIS
015 D010014 FRANCE
015 E040014 X
015 A000015 DRESDNER BANK AG
015 B000015 S
015 C010015 FRANKFURT
015 D010015 GERMANY
015 E040015 X
015 A000016 NATIONAL BANK OF GREECE S.A.
015 B000016 S
015 C010016 ATHENS
015 D010016 GREECE
015 E040016 X
015 A000017 STANDARD CHARTERED BANK
015 B000017 S
015 C010017 HONG KONG
<PAGE> PAGE 4
015 D010017 HONG KONG
015 E040017 X
015 A000018 CITIBANK BUDAPEST RT.
015 B000018 S
015 C010018 BUDAPEST
015 D010018 HUNGARY
015 E040018 X
015 A000019 THE HONGKONG AND SHANGHAI BANKING CORP., LTD.
015 B000019 S
015 C010019 MUMBAI
015 D010019 INDIA
015 E040019 X
015 A000020 STANDARD CHARTERED BANK
015 B000020 S
015 C010020 JAKARTA
015 D010020 INDONESIA
015 E040020 X
015 A000021 BANK OF IRELAND
015 B000021 S
015 C010021 DUBLIN
015 D010021 IRELAND
015 E040021 X
015 A000022 BANK HAPOALIM B.M.
015 B000022 S
015 C010022 TEL AVIV
015 D010022 ISRAEL
015 E040022 X
015 A000023 CITIBANK, N.A.
015 B000023 S
015 C010023 QUITO
015 D010023 ECUADOR
015 E040023 X
015 A000024 THE DAIWA BANK, LIMITED
015 B000024 S
015 C010024 TOKYO
015 D010024 JAPAN
015 E040024 X
015 A000025 SUMITOMO TRUST AND BANKING CO., LTD.
015 B000025 S
015 C010025 TOKYO
015 D010025 JAPAN
015 E040025 X
015 A000026 STANDARD CHARTERED BANK MALAYSIA BERHAD
015 B000026 S
015 C010026 KUALA LUMPUR
015 D010026 MALAYSIA
015 E040026 X
015 A000027 CITIBANK MEXICO, N.A.
015 B000027 S
015 C010027 MEXICO CITY
015 D010027 MEXICO
<PAGE> PAGE 5
015 E040027 X
015 A000028 MEESPIERSON N.V.
015 B000028 S
015 C010028 AMSTERDAM
015 D010028 NETHERLANDS
015 E040028 X
015 A000029 ANZ BANKING GROUP (NEW ZEALAND) LIMITED
015 B000029 S
015 C010029 WELLINGTON
015 D010029 NEW ZEALAND
015 E040029 X
015 A000030 CHRISTIANIA BANK OG KREDITKASSE
015 B000030 S
015 C010030 OSLO
015 D010030 NORWAY
015 E040030 X
015 A000031 DEUTSCHE BANK AG
015 B000031 S
015 C010031 KARACHI
015 D010031 PAKISTAN
015 E040031 X
015 A000032 CITIBANK, N.A.
015 B000032 S
015 C010032 LIMA
015 D010032 PERU
015 E040032 X
015 A000033 STANDARD CHARTERED BANK
015 B000033 S
015 C010033 MANILA
015 D010033 PHILLIPPINES
015 E040033 X
015 A000034 CITIBANK POLAND, S.A.
015 B000034 S
015 C010034 WARSAW
015 D010034 POLAND
015 E040034 X
015 A000035 BANCO COMERCIAL PORTUGUES
015 B000035 S
015 C010035 LISBON
015 D010035 PORTUGAL
015 E040035 X
015 A000036 THE DEVELOPMENT BANK OF SINGAPORE LTD.
015 B000036 S
015 C010036 SINGAPORE
015 D010036 SINGAPORE
015 E040036 X
015 A000037 CEKOSLOVENSKA OBCHODNA BANKA S.A.
015 B000037 S
015 C010037 BRATISLAVA
015 D010037 SLOVAK REPUBLIC
015 E040037 X
<PAGE> PAGE 6
015 A000038 STANDARD BANK OF SOUTH AFRICA LTD
015 B000038 S
015 C010038 JOHANNESBURG
015 D010038 SOUTH AFRICA
015 E040038 X
015 A000039 BANCO SANTANDER, S.A.
015 B000039 S
015 C010039 MADRID
015 D010039 SPAIN
015 E040039 X
015 A000040 SKANDINAVISKA ENSKILDA BANKEN
015 B000040 S
015 C010040 STOCKOLM
015 D010040 SWEDEN
015 E040040 X
015 A000041 UNION BANK OF SWITZERLAND
015 B000041 S
015 C010041 ZURICH
015 D010041 SWITZERLAND
015 E040041 X
015 A000042 CENTRAL TRUST OF CHINA
015 B000042 S
015 C010042 TAIPEI
015 D010042 TAIWAN
015 E040042 X
015 A000043 STANDARD CHARTERED BANK
015 B000043 S
015 C010043 THAILAND
015 D010043 THAILAND
015 E040043 X
015 A000044 CITIBANK, N.A.
015 B000044 S
015 C010044 ISTANBUL
015 D010044 TURKEY
015 E040044 X
015 A000045 STATE STREET BANK AND TRUST CO.
015 B000045 S
015 C010045 LONDON
015 D010045 UNITED KINGDOM
015 E040045 X
015 A000046 CITIBANK, N.A.
015 B000046 S
015 C010046 MONTEVIDEO
015 D010046 URUGUAY
015 E040046 X
015 A000047 CITIBANK, N.A.
015 B000047 S
015 C010047 CARACAS
015 D010047 VENEZUELA
015 E040047 X
015 A000048 THE EUROCLEAR SYSTEM
<PAGE> PAGE 7
015 B000048 S
015 C010048 N/A
015 D010048 TRANSNATIONAL
015 E040048 X
015 A000049 SEOULBANK
015 B000049 S
015 C010049 SEOUL
015 D010049 KOREA
015 E040049 X
015 A000050 BARCLAYS BANK OF GHANA LIMITED
015 B000050 S
015 C010050 ACCRA
015 D010050 GHANA
015 E040050 X
015 A000051 DEUTSCHE BANK AG
015 B000051 S
015 C010051 MUMBAI
015 D010051 INDIA
015 E040051 X
015 A000052 BANQUE PARIBAS
015 B000052 S
015 C010052 MILAN
015 D010052 ITALY
015 E040052 X
015 A000053 THE FUJI BANK, LIMITED
015 B000053 S
015 C010053 TOKYO
015 D010053 JAPAN
015 E040053 X
015 A000054 SOCIETE GENERALE DE BANQUES EN COTE D'IVOIRE
015 B000054 S
015 C010054 ABIDJAN
015 D010054 IVORY COAST
015 E040054 X
015 A000055 THE BRITISH BANK OF THE MIDDLE EAST
015 B000055 S
015 C010055 AMMAN
015 D010055 JORDAN
015 E040055 X
015 A000056 BARCLAYS BANK OF KENYA LIMITED
015 B000056 S
015 C010056 NAIROBI
015 D010056 KENYA
015 E040056 X
015 A000057 THE BRITISH BANK OF THE MIDDLE EAST
015 B000057 S
015 C010057 BEIRUT
015 D010057 LEBANON
015 E040057 X
015 A000058 CREDIT SUISSE FIRST BOSTON
015 B000058 S
<PAGE> PAGE 8
015 C010058 MOSCOW
015 D010058 RUSSIA
015 E040058 X
015 A000059 STANDARD CHARTERED BANK
015 B000059 S
015 C010059 DHAKA
015 D010059 BANGLADESH
015 E040059 X
015 A000060 BARCLAYS BANK PLC
015 B000060 S
015 C010060 NICOSIA
015 D010060 CYPRUS
015 E040060 X
015 A000061 NATIONAL BANK OF EGYPT
015 B000061 S
015 C010061 CAIRO
015 D010061 EGYPT
015 E040061 X
015 A000062 BANQUE COMMERCIALE DU MAROC
015 B000062 S
015 C010062 CASABLANCA
015 D010062 MOROCCO
015 E040062 X
015 A000063 THE HONGKONG AND SHANGHAI BANKING CORP. LTD.
015 B000063 S
015 C010063 COLOMBO
015 D010063 SRI LANKA
015 E040063 X
018 000000 Y
019 A000000 Y
019 B000000 103
019 C000000 PRUDENTIAL
020 A000001 LAZARD FRERES & CO. LLC
020 B000001 13-5545100
020 C000001 15
020 A000002 CREDIT RESEARCH & TRADING LLC
020 B000002 00-0000000
020 C000002 2
020 A000003 WEEDEN & CO., L.P..
020 B000003 13-3364318
020 C000003 2
020 A000004 NESBITT BURNS SECURITIES, INC.
020 B000004 00-0000000
020 C000004 2
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 22
<PAGE> PAGE 9
022 A000001 BEAR, STEARNS & CO., INC.
022 B000001 13-2999949
022 C000001 35489
022 D000001 42
022 A000002 CREDIT SUISSE FIRST BOSTON CORP.
022 B000002 13-5659405
022 C000002 25341
022 D000002 333
022 A000003 SALOMON SMITH BARNEY
022 B000003 13-3082694
022 C000003 20190
022 D000003 353
022 A000004 WARBURG DILLON READ LLC
022 B000004 13-3340045
022 C000004 12754
022 D000004 265
022 A000005 DEUTSCHE BANK SECURITIES, INC.
022 B000005 13-2730828
022 C000005 12510
022 D000005 0
022 A000006 MORGAN, (J.P.) SECURITIES, INC.
022 B000006 13-3224016
022 C000006 12147
022 D000006 126
022 A000007 GOLDMAN, SACHS & CO.
022 B000007 13-5108880
022 C000007 10362
022 D000007 283
022 A000008 LEHMAN BROTHERS, INC.
022 B000008 13-2518466
022 C000008 3403
022 D000008 143
022 A000009 DONALDSON, LUFKIN & JENRETTE SECURITIES CORP.
022 B000009 13-2741729
022 C000009 2082
022 D000009 1340
022 A000010 UBS SECURITIES, LLC.
022 B000010 13-3873456
022 C000010 2276
022 D000010 0
023 C000000 145521
023 D000000 9472
024 000000 N
025 A000001 DELETE
025 D000001 0
025 A000002 DELETE
025 D000002 0
025 A000003 DELETE
025 D000003 0
025 D000004 0
025 D000005 0
<PAGE> PAGE 10
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 89
028 A020000 0
028 A030000 0
028 A040000 223
028 B010000 185
028 B020000 0
028 B030000 0
028 B040000 146
028 C010000 -13
028 C020000 0
028 C030000 0
028 C040000 319
028 D010000 94
028 D020000 0
028 D030000 0
028 D040000 189
028 E010000 2
028 E020000 0
028 E030000 0
028 E040000 337
028 F010000 94
028 F020000 509
028 F030000 0
028 F040000 477
028 G010000 451
028 G020000 509
028 G030000 0
028 G040000 1691
028 H000000 130
029 000000 Y
030 A000000 22
030 B000000 5.00
030 C000000 0.00
031 A000000 1
031 B000000 0
032 000000 0
033 000000 21
034 000000 Y
<PAGE> PAGE 11
035 000000 23
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 100
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 66
044 000000 0
045 000000 Y
046 000000 Y
047 000000 Y
048 000000 0.750
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
<PAGE> PAGE 12
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 N
054 N000000 N
054 O000000 N
055 A000000 Y
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
058 B000000 N
058 C000000 N
058 D000000 N
058 E000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 10000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 C000000 Y
067 000000 N
068 A000000 N
068 B000000 N
<PAGE> PAGE 13
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 16363
071 B000000 15043
071 C000000 8008
071 D000000 188
072 A000000 12
072 B000000 596
072 C000000 14
072 D000000 0
072 E000000 0
072 F000000 65
072 G000000 0
072 H000000 0
072 I000000 8
072 J000000 95
<PAGE> PAGE 14
072 K000000 0
072 L000000 30
072 M000000 11
072 N000000 33
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 20
072 S000000 32
072 T000000 66
072 U000000 21
072 V000000 0
072 W000000 4
072 X000000 385
072 Y000000 233
072 Z000000 458
072AA000000 1000
072BB000000 709
072CC010000 0
072CC020000 2167
072DD010000 440
072DD020000 393
072EE000000 98
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.1730
073 C000000 0.0000
074 A000000 0
074 B000000 0
074 C000000 0
074 D000000 3640
074 E000000 278
074 F000000 2979
074 G000000 0
074 H000000 0
074 I000000 54
074 J000000 100
074 K000000 25
074 L000000 149
074 M000000 36
074 N000000 7261
074 O000000 117
074 P000000 4
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 181
074 S000000 0
074 T000000 6959
074 U010000 300
<PAGE> PAGE 15
074 U020000 301
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 383
074 Y000000 873
075 A000000 0
075 B000000 8656
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 Y
077 J000000 Y
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE
080 C000000 65000
081 A000000 Y
081 B000000 86
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
<PAGE> PAGE 16
086 F010000 0
086 F020000 0
SIGNATURE GRACE TORRES
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICL6
<CIK>
<NAMEPRUDENTIAL DISTRESSED SECURITIES FUND, INC.
<SERIES>
<NUMB001
<NAMPRUDENTIAL DISTRESSED SECURITIES FUND, INC. (CLASS A)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 8,145,190
<INVESTMENTS-AT-VALUE> 6,950,719
<RECEIVABLES> 248,623
<ASSETS-OTHER> 61,171
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,260,513
<PAYABLE-FOR-SECURITIES> 116,988
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 184,713
<TOTAL-LIABILITIES> 301,701
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,075,994
<SHARES-COMMON-STOCK> 601,149
<SHARES-COMMON-PRIOR> 516,528
<ACCUMULATED-NII-CURRENT> 44,559
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 32,730
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,194,471)
<NET-ASSETS> 6,958,812
<DIVIDEND-INCOME> 854,568
<INTEREST-INCOME> 14,200
<OTHER-INCOME> 0
<EXPENSES-NET> 152,259
<NET-INVESTMENT-INCOME> 716,509
<REALIZED-GAINS-CURRENT> 32,730
<APPREC-INCREASE-CURRENT> (2,167,375)
<NET-CHANGE-FROM-OPS> (1,418,136)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (832,193)
<DISTRIBUTIONS-OF-GAINS> (97,806)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,402,960
<NUMBER-OF-SHARES-REDEEMED> (2,764,519)
<SHARES-REINVESTED> 832,629
<NET-CHANGE-IN-ASSETS> (877,065)
<ACCUMULATED-NII-PRIOR> 253,972
<ACCUMULATED-GAINS-PRIOR> 97,471
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 64,913
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (80,899)
<AVERAGE-NET-ASSETS> 2,783,000
<PER-SHARE-NAV-BEGIN> 15.19
<PER-SHARE-NII> 1.33
<PER-SHARE-GAIN-APPREC> (3.15)
<PER-SHARE-DIVIDEND> (1.63)
<PER-SHARE-DISTRIBUTIONS> (0.17)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.57
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICL6
<CIK>
<NAMEPRUDENTIAL DISTRESSED SECURITIES FUND, INC.
<SERIES>
<NUMB002
<NAMPRUDENTIAL DISTRESSED SECURITIES FUND, INC. (CLASS B)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 8,145,190
<INVESTMENTS-AT-VALUE> 6,950,719
<RECEIVABLES> 248,623
<ASSETS-OTHER> 61,171
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,260,513
<PAYABLE-FOR-SECURITIES> 116,988
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 184,713
<TOTAL-LIABILITIES> 301,701
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,075,994
<SHARES-COMMON-STOCK> 601,149
<SHARES-COMMON-PRIOR> 516,528
<ACCUMULATED-NII-CURRENT> 44,559
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 32,730
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,194,471)
<NET-ASSETS> 6,958,812
<DIVIDEND-INCOME> 854,568
<INTEREST-INCOME> 14,200
<OTHER-INCOME> 0
<EXPENSES-NET> 152,259
<NET-INVESTMENT-INCOME> 716,509
<REALIZED-GAINS-CURRENT> 32,730
<APPREC-INCREASE-CURRENT> (2,167,375)
<NET-CHANGE-FROM-OPS> (1,418,136)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (832,193)
<DISTRIBUTIONS-OF-GAINS> (97,806)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,402,960
<NUMBER-OF-SHARES-REDEEMED> (2,764,519)
<SHARES-REINVESTED> 832,629
<NET-CHANGE-IN-ASSETS> (877,065)
<ACCUMULATED-NII-PRIOR> 253,972
<ACCUMULATED-GAINS-PRIOR> 97,471
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 64,913
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (80,899)
<AVERAGE-NET-ASSETS> 4,862,000
<PER-SHARE-NAV-BEGIN> 15.16
<PER-SHARE-NII> 1.22
<PER-SHARE-GAIN-APPREC> (3.15)
<PER-SHARE-DIVIDEND> (1.48)
<PER-SHARE-DISTRIBUTIONS> (0.17)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.58
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICL6
<CIK>
<NAMEPRUDENTIAL DISTRESSED SECURITIES FUND, INC.
<SERIES>
<NUMB003
<NAMPRUDENTIAL DISTRESSED SECURITIES FUND, INC. (CLASS C)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 8,145,190
<INVESTMENTS-AT-VALUE> 6,950,719
<RECEIVABLES> 248,623
<ASSETS-OTHER> 61,171
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,260,513
<PAYABLE-FOR-SECURITIES> 116,988
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 184,713
<TOTAL-LIABILITIES> 301,701
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,075,994
<SHARES-COMMON-STOCK> 601,149
<SHARES-COMMON-PRIOR> 516,528
<ACCUMULATED-NII-CURRENT> 44,559
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 32,730
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,194,471)
<NET-ASSETS> 6,958,812
<DIVIDEND-INCOME> 854,568
<INTEREST-INCOME> 14,200
<OTHER-INCOME> 0
<EXPENSES-NET> 152,259
<NET-INVESTMENT-INCOME> 716,509
<REALIZED-GAINS-CURRENT> 32,730
<APPREC-INCREASE-CURRENT> (2,167,375)
<NET-CHANGE-FROM-OPS> (1,418,136)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (832,193)
<DISTRIBUTIONS-OF-GAINS> (97,806)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,402,960
<NUMBER-OF-SHARES-REDEEMED> (2,764,519)
<SHARES-REINVESTED> 832,629
<NET-CHANGE-IN-ASSETS> (877,065)
<ACCUMULATED-NII-PRIOR> 253,972
<ACCUMULATED-GAINS-PRIOR> 97,471
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 64,913
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (80,899)
<AVERAGE-NET-ASSETS> 1,011,000
<PER-SHARE-NAV-BEGIN> 15.16
<PER-SHARE-NII> 1.22
<PER-SHARE-GAIN-APPREC> (3.16)
<PER-SHARE-DIVIDEND> (1.48)
<PER-SHARE-DISTRIBUTIONS> (0.17)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.57
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
For the fiscal period ended 11/30/98
File number 811-07491
SUB-ITEM 77 I
Terms of New or Amended Securities
On August 26, 1998, the Board of Directors authorized
the issuance of a fourth class of shares, designated Class
Z, for the Fund. Class Z shares are not subject to either
an initial or contingent deferred sales charge nor are they
subject to any Rule 12b-1 fees. Class Z shares will be
offered to a limited group of eligible investors as soon as
practicable.
Prudential Distressed Securities Fund, Inc.
For the Year Ended 11/30/98
File No. 811-07491
SUB-ITEM 77J
Reclassification of Capital Accounts: The Fund accounts and
reports for distributions to shareholders in accordance with
the American Institute of Certified Public Accountants
(AICPA) Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income;
Capital Gain, and Return of Capital Distributions by
Investment Companies. The effect of applying this statement
was to decrease accumulated net realized gains on
investments by $213,880, increase undistributed net
investment income by $120,486 and increase paid-in capital
in excess of par by $93,394. This is a result of a
reclassification of short-term capital gains. Net
investment income, net realized gains and net assets were
not affected by these changes.
