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SIGNATURE EUGENE S. STARK
TITLE TREASURER
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For the annual period ended (a) 12/31/96
File number (c) 811-5510
SUB-ITEM 77C
Submission of Matters to a Vote of Security Holders
A special Meeting of Shareholders was called
for October 30, 1996. At such meeting the
shareholders approved the following proposals:
A) Approval that Edward D. Beach, Delayne
Dedrick Gold, Robert F. Gunia, Donald D.
Lennox, Douglas H. McCorkindale, Mendel A.
Melzer, Thomas T. Mooney, Stephen P. Munn,
Richard A. Redeker, Robin B. Smith, Louis A.
Weil, III and Clay T. Whitehead are duly
elected to serve as Directors of the Fund
until the earlier to occur of (i) the next
meeting of Shareholders at which Directors
are elected and until his or her successor
shall have been duly elected and shall have
qualified or (ii) their terms expire in
accordance with the Fund's retirement policy.
Affirmative
Votes Cast
Votes Withheld
Edward D. Beach 108,904,537
3,927,678
Delayne Dedrick Gold 109,029,733
3,802,482
Robert F. Gunia 109,109,144
3,723,071
Donald D. Lennox 108,877,212
3,955,003
Douglas H. McCorkindale 109,061,163
3,771,052
Mendel A. Melzer 109,027,954
3,804,261
Thomas T. Mooney 109,073,245
3,758,970
Stephen P. Munn 109,108,518
3,723,697
Richard A. Redeker 109,092,459
3,739,756
Robin B. Smith 109,057,759
3,774,456
Louis A. Weil, III 109,066,470
3,765,745
Clay T. Whitehead 109,085,038
3,747,177
B) Approval of the proposed elimination
of the Fund's fundamental investment
restriction relating to investment in
securities of unseasoned issuers, as
described in such Fund's proxy statement.
For Against
Abstain
77,622,851 6,520,151
5,480,579
C) Approval of the proposed increase in
the percentage of portfolio securities that
the Fund may lend, as described in such
Fund's proxy statement.
For Against
Abstain
77,880,460 6,171,478
5,571,643
D) Approval of the selection of Deloitte
& Touche LLP as independent accountants for
the Fund conditioned upon the right by vote
of a majority of such Fund's outstanding
voting shares at any meeting called for the
purpose to terminate such employment
forthwith without penalties.
For Against
Abstain
107,490,494 1,055,270
4,286,451
E) In their discretion on any other
business which may properly come before the
meeting or any adjournment thereof.
For the fiscal year ended (a) 12/31/96
File number (c)811-5510
SUB-ITEM 77 D
Policies with Respect to Securities Investments
A) On October 30, 1996, the Shareholders
approved an investment policy modification
eliminating the Fund's fundamental investment
restriction relating to investment in securities
of unseasoned issuers, as described in the Fund's
proxy statement.
B) On October 30, 1996, The Shareholders
approved an investment policy modification
increasing the percentage of portfolio securities
that the Fund may lend from 10% to 30%, as
described in the Fund's proxy statement.
n-sar/pif2-97/77d
For the fiscal year ended December 31, 1996
File number (c) 811-3326
SUB-ITEM 77-0
EXHIBITS
Transactions Effected Pursuant to Rule
10f-3
I. Prudential Equity Fund
1. Name of Issuer
Associates First Capital
2. Date of Purchase
5/7/96
3. Number of Securities Purchased
192,400
4. Dollar Amount of Purchase
$5,579,600
5. Price Per Unit
$29.00
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Goldman Sachs
7. Other members of the Underwriting Syndicate
See Exhibit A
EXHIBIT A
UNDERWRITER
Goldman Sachs & Co.
CS First Boston Corporation
Merrill Lynch, Pierce, Fenner & Smith Incorporated
J.P. Morgan Securities Inc.
Bear, Stearns & Co. Inc.
Lehman Brothers Inc.
Saloman Brothers Inc.
Alex Brown & Sons Incorporated
Chase Securities Inc.
Citicorp Securities, Inc.
Dean Witter Reynolds Inc.
Deutsche Morgan Grenfell/C.J. Lawrence Inc.
Donaldson, Lufkin & Jenrette Securities
Corporation
A.G. Edwards & Sons, Inc.
EVEREN Securities, Inc.
Montgomery Securities
Morgan Stanley & Co. Incorporated
Oppenheimer & Co., Inc.
PaineWebber Incorporated
Prudential Securities Incorporated
Smith Barney Inc.
Wasserstein Perella Securities, Inc.
Advest, Inc.
Sanford C. Bernstein & Co., Inc.
William Blair & Company, L.L.C.
J.C. Bradford Co.
Dain Bosworth Incorporated
Furman Selz LLC
Edward D. Jones & Co.
Legg Mason Wood Walker Incorporated
McDonald & Company Securities, Inc.
Piper Jaffray Inc.
Rauscher Pierce Refsnes, Inc.
The Robinson-Humphrey Company, Inc.
Stephens Inc.
Sutro & Co. Incorporated
Wheat, First Securities, Inc.
First of Michigan Corporation
First Southwest Company
Gruntal & Co., Incorporated
Guzman & Company
NatCity Investments, Inc.
Samuel A. Ramirez & Co., Inc.
Roney & Co., LLC
Scott & Stringfellow, Inc.
Muriel Siebert & Co., Inc.
Stifel, Nicolaus & Company, Incorporated
Utendahl Capital Partners, L.P.
The Williams Capital Group, L.P.
February 27, 1997
To the Board of Directors of
Prudential Equity Fund, Inc.
In planning and performing our audit of the
financial statements of Prudential Equity Fund,
Inc. (the "Fund") for the year ended December 31,
1996, we considered its internal control
structure, including procedures for safeguarding
securities, in order to determine our auditing
procedures for the purposes of expressing our
opinion on the financial statements and to comply
with the requirements of Form N-SAR, and not to
provide assurance on the internal control
structure.
The management of the Fund is responsible for
establishing and maintaining an internal control
structure. In fulfilling this responsibility,
estimates and judgments by management are required
to assess the expected benefits and related costs
of internal control structure policies and
procedures. Two of the objectives of an internal
control structure are to provide management with
reasonable, but not absolute, assurance that
assets are appropriately safeguarded against loss
from unauthorized use or disposition and that
transactions are executed in accordance with
management's authorization and recorded properly
to permit preparation of financial statements in
conformity with generally accepted accounting
principles.
Because of inherent limitations in any internal
control structure, errors or irregularities may
occur and may not be detected. Also, projection
of any evaluation of the structure to future
periods is subject to the risk that it may become
inadequate because of changes in conditions or
that the effectiveness of the design and operation
may deteriorate.
Our consideration of the internal control
structure would not necessarily disclose all
matters in the internal control structure that
might be material weaknesses under standards
established by the American Institute of Certified
Public Accountants. A material weakness is a
condition in which the design or operation of the
specific internal control structure elements does
not reduce to a relatively low level the risk that
errors or irregularities in amounts that would be
material in relation to the financial statements
being audited may occur and not be detected within
a timely period by employees in the normal course
of performing their assigned functions. However,
we noted no matters involving the internal control
structure, including procedures for safeguarding
securities, that we consider to be material
weaknesses as defined above as of December 31,
1996.
This report is intended solely for the information
and use of management and the Securities and
Exchange Commission.
PRICE WATERHOUSE LLP
