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<INVESTMENTS-AT-COST> 4,289,703,406
<INVESTMENTS-AT-VALUE> 5,623,485,883
<RECEIVABLES> 15,168,218
<ASSETS-OTHER> 528,315
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
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<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,619,379
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,169,390,422
<SHARES-COMMON-STOCK> 284,143,853
<SHARES-COMMON-PRIOR> 269,320,292
<ACCUMULATED-NII-CURRENT> 4,016,752
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 103,289,451
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,333,783,232
<NET-ASSETS> (553,464,145)
<DIVIDEND-INCOME> 84,057,036
<INTEREST-INCOME> 43,131,757
<OTHER-INCOME> 0
<EXPENSES-NET> 71,269,344
<NET-INVESTMENT-INCOME> 55,919,449
<REALIZED-GAINS-CURRENT> 668,341,418
<APPREC-INCREASE-CURRENT> (297,985,109)
<NET-CHANGE-FROM-OPS> 426,275,758
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (51,437,776)
<DISTRIBUTIONS-OF-GAINS> (398,848,254)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,813,992,163
<NUMBER-OF-SHARES-REDEEMED> (6,953,915,648)
<SHARES-REINVESTED> 431,480,103
<NET-CHANGE-IN-ASSETS> 267,546,346
<ACCUMULATED-NII-PRIOR> 503,736,376
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 25,661,934
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 71,269,344
<AVERAGE-NET-ASSETS> 3,135,980,000
<PER-SHARE-NAV-BEGIN> 19.83
<PER-SHARE-NII> 0.14
<PER-SHARE-GAIN-APPREC> 1.37
<PER-SHARE-DIVIDEND> (0.12)
<PER-SHARE-DISTRIBUTIONS> (1.49)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 19.73
<EXPENSE-RATIO> 1.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000356683
<NAME> PRUDENTIAL EQUITY FUND, INC.
<SERIES>
<NUMBER> 003
<NAME> EQUITY FUND (CLASS C)
<S> <C>
<PERIOD-TYPE> YEAR
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<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 4,289,703,406
<INVESTMENTS-AT-VALUE> 5,623,485,883
<RECEIVABLES> 15,168,218
<ASSETS-OTHER> 528,315
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<OVERDISTRIBUTION-GAINS> 0
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<DISTRIBUTIONS-OF-GAINS> (398,848,254)
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<NUMBER-OF-SHARES-REDEEMED> (6,953,915,648)
<SHARES-REINVESTED> 431,480,103
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<OVERDISTRIB-NII-PRIOR> 0
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<PER-SHARE-NII> 0.16
<PER-SHARE-GAIN-APPREC> 1.35
<PER-SHARE-DIVIDEND> (0.12)
<PER-SHARE-DISTRIBUTIONS> (1.49)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 19.73
<EXPENSE-RATIO> 1.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000356683
<NAME> PRUDENTIAL EQUITY FUND, INC.
<SERIES>
<NUMBER> 004
<NAME> EQUITY FUND (CLASS Z)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 4,289,703,406
<INVESTMENTS-AT-VALUE> 5,623,485,883
<RECEIVABLES> 15,168,218
<ASSETS-OTHER> 528,315
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 22,083,180
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,619,379
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,169,390,422
<SHARES-COMMON-STOCK> 284,143,853
<SHARES-COMMON-PRIOR> 269,320,292
<ACCUMULATED-NII-CURRENT> 4,016,752
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 103,289,451
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,333,783,232
<NET-ASSETS> (553,464,145)
<DIVIDEND-INCOME> 84,057,036
<INTEREST-INCOME> 43,131,757
<OTHER-INCOME> 0
<EXPENSES-NET> 71,269,344
<NET-INVESTMENT-INCOME> 55,919,449
<REALIZED-GAINS-CURRENT> 668,341,418
<APPREC-INCREASE-CURRENT> (297,985,109)
<NET-CHANGE-FROM-OPS> 426,275,758
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (51,437,776)
<DISTRIBUTIONS-OF-GAINS> (398,848,254)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,813,992,163
<NUMBER-OF-SHARES-REDEEMED> (6,953,915,648)
<SHARES-REINVESTED> 431,480,103
<NET-CHANGE-IN-ASSETS> 267,546,346
<ACCUMULATED-NII-PRIOR> 503,736,376
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 25,661,934
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 71,269,344
<AVERAGE-NET-ASSETS> 311,816,000
<PER-SHARE-NAV-BEGIN> 19.87
<PER-SHARE-NII> 0.35
<PER-SHARE-GAIN-APPREC> 1.36
<PER-SHARE-DIVIDEND> (0.33)
<PER-SHARE-DISTRIBUTIONS> (1.49)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 19.76
<EXPENSE-RATIO> 0.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
Independent Accountants
To the Shareholders and 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, 1998, we considered its internal
control, including control activities for
safeguarding securities, in order to
determine our auditing procedures for the
purpose of expressing our opinion on the
financial statements and to comply with the
requirements of Form N-SAR, not to provide
assurance on internal control.
The management of the Fund is responsible for
establishing and maintaining internal
control. In fulfilling this responsibility,
estimates and judgments by management are
required to assess the expected benefits and
related costs of controls. Generally,
controls that are relevant to an audit
pertain to the entity's objective of
preparing financial statements for external
purposes that are fairly presented in
conformity with generally accepted accounting
principles. Those controls include the
safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal
control, errors or fraud may occur and not be
detected. Also, projection of any evaluation
of internal control 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 internal control would
not necessarily disclose all matters in
internal control 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
one or more of the internal control
components does not reduce to a relatively
low level the risk that misstatements caused
by error or fraud 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 internal control and its
operation,
including controls for safeguarding
securities, that we consider to be material
weaknesses as defined above as of December
31, 1998.
This report is intended solely for the
information and use of management and the
Board of Directors of the Fund and the
Securities and Exchange Commission.
PricewaterhouseCoopers LLP
New York, New York
February 18, 1999
To the Shareholders and Board of Directors of
Prudential Equity Fund, Inc.
( PAGE 2)
