PRUDENTIAL WORLD FUND INC, N-30D, 1997-07-09

PRUDENTIAL WORLD FUND INC
N-30D, 1997-07-09

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(ICON)

Prudential
World
Fund, Inc.
- --------------------------
International Stock Series

SEMI
ANNUAL
REPORT
April 30, 1997

(LOGO)

<PAGE>

Prudential World Fund, Inc.
International Stock Series

Performance At A Glance.
We are pleased to report that the Prudential World
Fund -- International Stock Series performed significantly
better during the last six months than competing funds measured
by Lipper Analytical Services and international stocks in general
as measured by the Morgan Stanley Europe, Australasia and Far
East (EAFE) Index. Your Series' strong performance was the
result of its heavy emphasis on European stocks.

<TABLE>
<CAPTION>
Six One Three Since
Months Year Years Inception2
<C> <C> <C> <C> <C> <C>
Cumulative Class A 9.7% N/A N/A 10.0%
Total Class B 9.3 N/A N/A 9.5
Returns1 Class C 9.3 N/A N/A 9.5
As of 4/30/97 Class Z 9.9 11.1% 30.4% 93.1
Lipper Int'l
Funds Avg3 6.2 5.4 20.9 ***
</TABLE>

<TABLE>
<CAPTION>
One Three Since
Year Years Inception2
<C> <S> <C> <C> <C>
Average
Annual Total
Returns1 Class Z 15.4% 10.2% 16.1%
As of 3/31/97
</TABLE>

Past performance is not indicative of future results. Principal and
investment return will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.

1Source: Prudential Investments Fund Management and Lipper Analytical
Services. The cumulative total returns do not take into account
sales charges. The average annual returns do take into account
applicable sales charges. The Fund charges a maximum
front-end sales load of 5% for Class A shares and a declining
contingent deferred sales charge (CDSC) of 5%, 4%, 3%, 2%, 1%
and 1% for six years for Class B shares. Class C shares have a
1% CDSC for one year. Class B shares will automatically
convert to Class A shares on a quarterly basis, approximately
seven years after purchase. Class Z shares are not subject to
a sales charge or a distribution fee.

2Inception dates: 9/23/96 Class A, Class B and Class C; 11/5/92
Class Z. Since Class A, B and C shares have been in existence
less than one year, no average annual returns are presented.
Class Z shares were issued on 9/20/96 in connection with the
reorganization of the International Stock Fund, the assets and
liabilities of which were transferred and exchanged for
Class Z shares of the Series. The Series is the "accounting"
survivor of the reorganization. Accordingly, Class Z performance
results date from the inception of the International Stock Fund.

3Lipper returns are for 91 funds for six months, 78 funds for
one year, and 77 funds for three years.

*** Lipper Since Inception returns are: Class A, B, and C, 5.5%
for 388 funds; Class Z, 74.6% for 107 funds.

How Investments Compared.
(As of 4/30/97)
(GRAPH)

Source: Lipper Analytical Services. Financial markets change, so
a mutual fund's past performance should never be used to predict
future results. The risks to each of the investments listed above
are different -- we provide 12-month total returns for
several Lipper mutual fund categories to show you that reaching
for higher returns means tolerating more risk. The greater the
risk, the larger the potential reward or loss. In addition,
we've included historical 20-year average annual returns.
These returns assume the reinvestment of dividends.

U.S. Growth Funds will fluctuate a great deal. Investors have
received higher historical total returns from stocks than
from most other investments. Smaller capitalization stocks
offer greater potential for long-term growth but may be
more volatile than larger capitalization stocks.

General Bond Funds provide more income than stock funds, which
can help smooth out their total returns year by year. But their
prices still fluctuate (sometimes significantly) and their
returns have been historically lower than those of stock funds.

General Municipal Debt Funds invest in bonds issued by state
governments, state agencies and/or municipalities. This
investment provides income that is usually exempt from
federal and state income taxes.

Money Market Funds attempt to preserve a constant share
value; they don't fluctuate much in price but, historically,
their returns have been generally among the lowest of the
major investment categories.

<PAGE>

Peter F. Spano, Fund Manager (PICTURE)

Portfolio
Manager's Report

The Prudential World Fund -- International Stock Series invests in
stocks of companies located outside the U.S. We use a disciplined
investment style to seek bargain-priced stocks that we think will
provide long-term capital appreciation. There are
special risks associated with foreign investments, including
political, economic and social risks, and potential illiquidity.
There can be no assurance that the Series will achieve its
investment objective.

Looking For
Value.
Portfolio Manager Peter Spano selects securities for the portfolio
with an eye for value. He searches for individual stocks with low
price-to-earnings, price-to-book value, and price-to-cash flow ratios
and high dividend yields. Peter's primary focus is on the company,
and not the country, region or industry in which it is located.

Strategy Session.

Europe Dominates.
Our strategy is to look for bargain opportunities in individual stocks
rather than trying to identify regions or countries that we think will
perform well. As a result, we did not make any significant investment
shifts during the past six months. With more than 60% of the Series'
portfolio invested in Europe, we continue to find more bargains
there than in any other region.

European countries have pledged to follow conservative fiscal
policies to qualify for monetary unification behind a single
currency in 1999. This political restraint combined with low
inflation, low interest rates and modest economic growth has been
a favorable backdrop for good corporate earnings. A number of
portfolio holdings are enjoying strong and improving earnings,
which has been reflected in their strong stock performance.

Looking Beyond Japan.
While an economic recovery appears to be underway in Japan,
many stocks there remain very expensive, in our opinion. It's
been difficult to find bargains there. Our strong performance
during the last six months was in part a result of our relatively
small position in Japan.

We did slightly increase our holdings in the Pacific Basin
outside Japan during the last six months. As economic growth
slowed in this region albeit from levels already significantly
higher than the U.S. and Europe, we did find some limited
opportunities. We believe this to be a temporary pause before
growth resumes. And when it does, we look forward to making a
more substantial commitment to this region.

Portfolio Breakdown.
Expressed as a percentage of
total investments as of 4/30/97.
(PIE CHART)

<PAGE>

What Went Well.

Light On Japan.
Our small position in Japan (about 5% of total investments,
about a third of what many international stock indexes hold)
and the positive performance of our Japanese investments was
a significant contributor to our superior performance over the past
six months. While we continue to monitor the Japanese market
closely, we don't see many compelling bargains. So we may
continue to hold fewer assets in Japanese stocks than our
competition for some time to come.

Let's Do Europe.
Continental Europe provided many of our best-performing stocks
during the reporting period. We did well in Italy, where
packaged milk maker Parmalat expanded successfully into
emerging markets, and clothing retailer Benetton rebounded.
Netherlands-based financial services conglomerate ING
enjoyed good global growth.

Sweden also was a bright spot. Consumer goods companies
such as Electrolux, SKF and Volvo, enjoyed both a surge
in local demand (because of an economic upswing) and
growing worldwide demand for exports. In Spain, interest
rate-sensitive stocks such as banks and electric utilities
did well as interest rates declined and earnings rose.
Finally, in Switzerland, rising stock prices for
pharmaceutical company Novartis, Swiss Bank Corp.
and Sulzer, helped our performance.

Oh, Canada!
We also were successful in Canada, where banks and retailers,
especially Canadian Tire, were beneficiaries of an economy that
continues to improve in a low inflation environment.

Five Largest Holdings.
2.3% Benetton Group S.P.A.
Textiles & Apparel
2.2% Bank of Nova Scotia
Commercial Banking
2.2% Pioneer International
Building Materials
2.2% SMH - Swiss Corp.
Electronics
2.1% ING Groep NV
Financial Services

Expressed as a percentage of total net assets as of 4/30/97.

And Not So Well.

Korean Slowdown.
Our Korean stocks performed poorly in line with the Korean equity
market. This was due to deteriorating earnings caused by several
events: declines in semiconductor prices and steel exports, and
a general slowdown in economic activity in the Pacific
Rim countries. We believe the situation is improving.

Looking Ahead.
U.S. stocks have led their foreign counterparts for almost seven
and a half years now, a pattern we expect to change shortly. After
all, the bull market in U.S. stocks has gone on much longer than
most experts had anticipated. To us, this trend means risk is
higher in U.S. stocks than in foreign stocks. Already, we have
seen increasing interest in international investing among
individual and institutional investors alike, and an increase
in demand for non-U.S. stocks by local investors. These are
signs that demand for foreign stocks may be increasing, which
could drive prices up.

1
<PAGE>

President's Letter June 9, 1997
(PICTURE)

Staying The Course.

Dear Shareholder:

With the midpoint of 1997 upon us, I'm pleased to report that the recent
news from the financial markets has been decidedly upbeat. The Dow Jones
Industrial Average has gained nearly 17% through mid-June, while lower
long-term interest rates have made bonds an attractive investment.

This stands in contrast to April when the Dow fell 10% from a record
high on fears of higher interest rates and surging inflation.
Interest rates have since fallen as the economy slowed and the
Dow has reached several new highs.

The market swings we've seen this year illustrate the importance
of "staying the course" to your financial goal. We realize that
maintaining investment discipline when faced with market
uncertainty isn't easy. Here are some thoughts that may help:

- -- Keep Your Expectations Realistic. The best investors know
that financial markets rise and fall -- and so too, will the
value of their investments. Over time, however, stocks have
been shown to produce very attractive returns that were well ahead
of inflation.

- -- Remember Your Time Horizon. If your investment goals are
long term (several years or more), so should your time horizon.
During this period, it's not unusual for stocks and bonds to
experience several periods of market uncertainty.

- -- We're On Your Side. Your Prudential Securities Financial
Advisor or Pruco Securities Registered Representative can
help you understand what's happening in the financial markets.
They can assist you in making informed decisions based upon a
thorough knowledge of your financial needs and long-term goals.
Call him or her today.

Thank you for your continued confidence in Prudential mutual
funds. We'll do everything we can to keep you informed and to
earn your trust.

Sincerely,

Brian M. Storms
President, Prudential Mutual Funds & Annuities

<PAGE>
Portfolio of Investments as PRUDENTIAL WORLD FUND, INC.
of April 30, 1997 (Unaudited) INTERNATIONAL STOCK SERIES
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
<C> <S> <C>
------------------------------------------------------------
LONG-TERM INVESTMENTS--90.1%
COMMON STOCKS
------------------------------------------------------------
Argentina--3.3%
90,000 Telecom Argentina (ADR)(Utilities) $ 4,500,000
175,000 YPF Sociedad Anonima (ADR)
(Oil & Gas) 4,834,375
------------
9,334,375
- ------------------------------------------------------------
Australia--8.4%
1,600,000 CSR, Ltd. (Multi-Industry) 5,917,603
920,000 Mayne Nickless Ltd.
(Multi-Industry) 5,706,929
425,000 National Australia Bank Ltd.
(Commercial Banking) 5,819,874
1,900,000 Pioneer International Ltd.
(Building Materials &
Components) 6,256,242
------------
23,700,648
- ------------------------------------------------------------
Canada--4.5%
38,000 Alcan Aluminum Ltd. (Metals) 1,287,250
165,000 Bank of Nova Scotia (Commercial
Banking) 6,268,889
284,000 Canadian Tire Corp., Ltd., Class A
(Automotive Parts) 5,156,056
------------
12,712,195
- ------------------------------------------------------------
France--5.7%
40,000 Christian Dior S.A. (Textiles &
Apparel) 5,937,366
49,000 Peugeot S.A. (Automobile
Manufacturing) 4,885,285
55,000 Societe Nationale Elf Aquitaine
(Energy) 5,341,914
------------
16,164,565
Italy--6.2%
1,200,000 Banca Fideuram S.P.A. (Financial
Services) $ 3,017,632
150,000 Banca Popolare Di Bergamo Credito
Vaesino S.P.A. (Banks) 2,193,047
500,000 Benetton Group S.P.A. (ADR)
(Textiles & Apparel) 6,506,038
3,950,000 Parmalat Finanziaria S.P.A.
(Agriculture) 5,751,922
------------
17,468,639
- ------------------------------------------------------------
Japan--4.9%
530,000 Hitachi, Ltd. (Electrical
Equipment) 4,800,347
320,000 Matsushita Electric Industrial Co.,
Ltd. (Electrical Equipment) 5,116,169
54,000 Sony Corp. (Electronics) 3,929,747
------------
13,846,263
- ------------------------------------------------------------
Korea--4.5%
180,000 Korea Electric Power Corp.
(Electrical Power) 5,367,713
56,697 Korea Long Term Credit Bank (Banks
& Financial Services) 737,315
98,000 Korea Zinc (Metals-Non Ferrous) 2,021,525
30,575 L.G. Construction Ltd.
(Construction & Housing) 452,455
17,600 Pohang Iron & Steel Co., Ltd.
(Metal-Steel) 1,057,579
28,068 Samsung Electronics Co., Ltd.
(Manufacturing) 1,906,862
60,020 Tong Yang Cement Co. (Construction
& Housing) 1,157,336
------------
12,700,785
</TABLE>
- --------------------------------------------------------------------------------
-----
See Notes to Financial Statements. 3

<PAGE>
Portfolio of Investments as PRUDENTIAL WORLD FUND, INC.
of April 30, 1997 (Unaudited) INTERNATIONAL STOCK SERIES
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
<C> <S> <C>
------------------------------------------------------------
Netherlands--9.3%
42,000 AKZO N.V. (Chemicals) $ 5,418,658
152,000 ING Groep N.V. (Financial Services) 5,976,870
176,000 KLM Royal Dutch Airlines
(Airlines/Military Technology) 5,210,794
160,000 Pakhoed Holdings N.V. (Energy
Equipment & Services) 5,222,308
105,000 Stork N.V. (Machinery &
Engineering) 4,528,142
------------
26,356,772
- ------------------------------------------------------------
New Zealand--4.7%
2,200,000 Carter Holt Harvey Ltd. (Forestry &
Paper) 4,877,711
700,000 Fisher & Paykel Industries Ltd.
(Consumer Durable Goods) 2,512,298
2,400,000 Lion Nathan Ltd. (Beverages &
Tobacco) 5,770,110
------------
13,160,119
- ------------------------------------------------------------
Norway--1.9%
70,000 Orkla A.S. (Food & Household
Products) 5,424,372
- ------------------------------------------------------------
Spain--5.4%
80,000 Banco Bilbao Vizcaya, S.A.
(Commercial Banking) 5,393,443
30,000 Banco de Andalucia S.A. (Commercial
Banking) 3,946,422
520,000 Iberdrola, S.A. (Utilities) 5,878,524
------------
15,218,389
- ------------------------------------------------------------
Sweden--7.5%
94,000 Electrolux AB (Appliances) 5,398,851
235,000 SKF International AB (Consumer
Goods) 5,098,915
253,000 Svedala Industri AB (Engineering &
Construction) $ 4,649,904
235,000 Volvo AB (Automobile Manufacturing) 5,923,740
------------
21,071,410
- ------------------------------------------------------------
Switzerland--9.5%
20,000 Valora Holding AG (Merchandising) 4,377,974
3,720 Novartis A.G. (ADR) (Drugs & Health
Care) 4,911,108
11,000 SMH-Swiss Corp. for
Microelectronics and Watchmaking
Industries Ltd. (Electronics) 6,244,052
8,000 Sulzer Brothers Ltd. (Machinery &
Engineering) 5,520,055
27,000 Swiss Bank Corp. (Banks & Financial
Services) 5,910,265
------------
26,963,454
- ------------------------------------------------------------
United Kingdom--14.3%
700,000 Allied-Lyons PLC (Beverages &
Tobacco) 4,949,610
2,100,000 British Steel PLC (Steel) 4,847,204
800,000 British Telecom PLC
(Telecommunications) 5,877,763
2,100,000 Coats Viyella PLC (Textiles &
Apparel) 4,437,581
381,428 Lloyds TSB Group PLC (Finance) 3,490,637
465,000 National Westminster Bank PLC
(Commercial Banking) 5,517,718
755,000 Rank Group PLC (Media) 5,215,783
473,000 Takare PLC (Health Services) 961,070
900,000 Tesco PLC (Food & Household
Products) 5,237,321
------------
40,534,687
------------
Total long-term investments
(cost $215,399,707) 254,656,673
------------
</TABLE>
- --------------------------------------------------------------------------------
-----
See Notes to Financial Statements. 4

<PAGE>
PRUDENTIAL WORLD FUND, INC.
INTERNATIONAL STOCK SERIES
Portfolio of Investments as of April 30, 1997 (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
SHORT-TERM INVESTMENT--14.2%
- ------------------------------------------------------------
Repurchase Agreement
$ 39,963 Joint Repurchase Agreement Account,
5.42%, 5/1/97
(cost $39,963,000; Note 5) $ 39,963,000
------------
- ------------------------------------------------------------
Total Investments--104.3%
(cost $255,362,707; Note 4) 294,619,673
Liabilities in excess of other
assets--(4.3%) (12,059,151)
------------
Net Assets--100% $282,560,522
------------
------------
</TABLE>
- ---------------
ADR--American Depository Receipt.
- --------------------------------------------------------------------------------
-----
See Notes to Financial Statements. 5

<PAGE>
Statement of Assets and Liabilities PRUDENTIAL WORLD FUND, INC.
(Unaudited) INTERNATIONAL STOCK SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Assets April 30, 1997
Investments, at value (cost $255,362,707)................................................................... $294,619,673
Foreign currency, at value (cost $499,694).................................................................. 497,510
Receivable for Series shares sold........................................................................... 2,174,303
Interest and dividends receivable........................................................................... 1,401,402
Deferred expenses and other assets.......................................................................... 9,998
--------------
Total assets............................................................................................. 298,702,886
--------------
Liabilities
Payable for investments purchased........................................................................... 13,989,137
Payable for Series shares reacquired........................................................................ 1,672,102
Accrued expenses and other liabilities...................................................................... 245,370
Management fee payable...................................................................................... 192,165
Distribution fee payable.................................................................................... 43,590
--------------
Total liabilities........................................................................................ 16,142,364
--------------
Net Assets.................................................................................................. $282,560,522
--------------
--------------
Net assets were comprised of:
Common stock, at par..................................................................................... $ 159,385
Paid-in capital in excess of par......................................................................... 238,319,001
--------------
238,478,386
Undistributed net investment income...................................................................... 1,031,235
Accumulated net realized gain on investments............................................................. 3,820,140
Net unrealized appreciation on investments and foreign currencies........................................ 39,230,761
--------------
Net assets, April 30, 1997.................................................................................. $282,560,522
--------------
--------------
Class A:
Net asset value and redemption price per share
($19,764,309 / 1,114,986 shares of common stock issued and outstanding)............................... $17.73
Maximum sales charge (5% of offering price).............................................................. .93
--------------
Maximum offering price to public......................................................................... $18.66
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($46,299,583 / 2,619,074 shares of common stock issued and outstanding)............................... $17.68
--------------
--------------
Class C:
Net asset value, offering price and redemption price per share
($8,171,301 / 462,242 shares of common stock issued and outstanding).................................. $17.68
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($208,325,329 / 11,742,247 shares of common stock issued and outstanding)............................. $17.74
--------------
--------------
</TABLE>
- --------------------------------------------------------------------------------
-----
See Notes to Financial Statements. 6

<PAGE>
PRUDENTIAL WORLD FUND, INC.
Statements of Operations (Unaudited) INTERNATIONAL STOCK SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
Net Investment Income April 30, 1997
<S> <C>
Income
Dividends (net of foreign withholding taxes of $530,516)................................................... $ 3,596,251
Interest................................................................................................... 499,959
--------------
Total income............................................................................................ 4,096,210
--------------
Expenses
Management fee............................................................................................. 1,092,931
Distribution fee--Class A.................................................................................. 6,614
Distribution fee--Class B.................................................................................. 61,302
Distribution fee--Class C.................................................................................. 11,663
Transfer agent's fees and expenses......................................................................... 197,000
Custodian's fees and expenses.............................................................................. 186,000
Reports to shareholders.................................................................................... 155,500
Registration fees.......................................................................................... 140,500
Audit fees and expenses.................................................................................... 10,000
Amortization of deferred organization expenses............................................................. 6,637
Legal fees and expenses.................................................................................... 5,000
Directors' fees............................................................................................ 2,500
Miscellaneous.............................................................................................. 17,144
--------------
Total expenses.......................................................................................... 1,892,791
--------------
Net investment income......................................................................................... 2,203,419
--------------
Realized and Unrealized Gain (Loss)
on Investment and Foreign Currency
Transactions
Net realized gain (loss) on:
Investment transactions.................................................................................... 3,506,307
Foreign currency transactions.............................................................................. (274,199)
--------------
3,232,108
--------------
Net change in unrealized appreciation on:
Investments................................................................................................ 14,002,269
Foreign currencies......................................................................................... (28,238)
--------------
13,974,031
--------------
Net gain on investments and foreign currencies................................................................ 17,206,139
--------------
Net Increase in Net Assets
Resulting from Operations..................................................................................... $ 19,409,558
--------------
--------------
</TABLE>
- --------------------------------------------------------------------------------
-----
See Notes to Financial Statements. 7

<PAGE>

Statements of Changes in Net Assets PRUDENTIAL WORLD FUND, INC.
(Unaudited) INTERNATIONAL STOCK SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
October 1,
Six Months 1996 Year
Ended Through Ended
Increase (Decrease) April 30, October 31, September 30,
In Net Assets 1997 1996 1996
<S> <C> <C> <C>
Operations
Net investment income (loss)...................................... $ 2,203,419 $ (127,030) $ 2,552,778
Net realized gain on investment and foreign currency
transactions................................................... 3,232,108 814,988 4,753,897
Net change in unrealized appreciation of investments and foreign
currencies..................................................... 13,974,031 496,864 7,438,658
--------------- --------------- -------------
Net increase in net assets resulting from operations.............. 19,409,558 1,184,822 14,745,333
--------------- --------------- -------------
Dividends and distributions (Note 1)
Dividends from net investment income
Class A........................................................ (1,745) -- --
Class B........................................................ (23) -- --
Class C........................................................ (2) -- --
Class Z........................................................ (2,801,611) -- (1,739,771 )
--------------- --------------- -------------
(2,803,381) -- (1,739,771 )
--------------- --------------- -------------
Distributions from net realized gains
Class A........................................................ (1,514) -- --
Class B........................................................ (24) -- --
Class C........................................................ (2) -- --
Class Z........................................................ (2,381,370) -- --
--------------- --------------- -------------
(2,382,910) -- --
--------------- --------------- -------------
Series share transactions (Note 6)
Net proceeds from shares sold..................................... 179,658,195 9,340,491 115,942,217
Net asset value of shares issued in reinvestment of dividends and
distributions.................................................. 5,185,219 -- 1,739,771
Cost of shares reacquired......................................... (106,941,404) (8,477,063) (78,985,777 )
--------------- --------------- -------------
Net increase in net assets from Series share transactions......... 77,902,010 863,428 38,696,211
--------------- --------------- -------------
Total increase....................................................... 92,125,277 2,048,250 51,701,773
Net Assets
Beginning of period.................................................. 190,435,245 188,386,995 136,685,222
--------------- --------------- -------------
End of period........................................................ $ 282,560,522 $ 190,435,245 $188,386,995
--------------- --------------- -------------
--------------- --------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
-----
See Notes to Financial Statements. 8

<PAGE>
PRUDENTIAL WORLD FUND, INC.
Notes to Financial Statements (Unaudited) INTERNATIONAL STOCK SERIES
- --------------------------------------------------------------------------------
Prudential World Fund, Inc. (the 'Fund') is registered under the Investment
Company Act of 1940, as an open-end, diversified management investment company
and consists of two series. The International Stock Series (the 'Series'),
commenced investment operations in November, 1992.
The investment objective of the Series is to achieve long-term growth of capital
through investment in equity securities of foreign issuers. Income is a
secondary objective. The Series seeks to achieve its objective primarily through
investment in a diversified portfolio of securities which consist of equity
securities of foreign issuers.
- ------------------------------------------------------------
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Series in the preparation of its financial statements.
Securities Valuation: Securities traded on an exchange (whether domestic or
foreign) are valued at the last reported sales price on the primary exchange on
which they are traded. Securities traded in the over-the-counter market
(including securities listed on exchanges for which a last sales price is not
available) are valued at the average of the last reported bid and asked prices.
Any security for which a reliable market quotation is unavailable is valued at
fair value considering factors determined in good faith by the investment
adviser under procedures established by and under the general supervision of the
Series' Board of Directors.
Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost.
In connection with transactions in repurchase agreements with U.S. financial
institutions, it is the Series' policy that its custodian or designated
subcustodians, as the case may be under triparty repurchase agreements, take
possession of the underlying securities, the value of which exceeds the
principal amount of the repurchase transaction including accrued interest. If
the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Series may be delayed or limited.
All securities are valued as of 4:15 p.m., New York time.
Foreign Currency Translation: The books and records of the Series are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:
(i) market value of investment securities, other assets and liabilities - at the
closing rates of exchange.
(ii) purchases and sales of investment securities, income and expenses - at the
rate of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange
rates and market values at the close of the fiscal period, the Series does not
isolate that portion of the results of operations arising as a result of changes
in the foreign exchange rates from the fluctuations arising from changes in the
market prices of securities held at the end of the period. Similarly, the Series
does not isolate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of long-term portfolio
securities sold during the period. Accordingly, these realized foreign currency
gains (losses) are included in the reported net realized gains (losses) on
investment transactions.
Net realized gains (losses) on foreign currency transactions represent net
foreign exchange gains or losses from holdings of foreign currencies, currency
gains or losses realized between the trade and settlement dates on security
transactions, and the difference between the amounts of dividends, interest and
foreign taxes recorded on the Series' books and the U.S. dollar equivalent
amounts actually received or paid. Net unrealized currency gains or losses from
valuing foreign currency denominated assets and liabilities (other than
investments) at fiscal period end exchange rates are reflected as a component of
net unrealized appreciation on investments and foreign currencies.
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of domestic origin as a result of,
among other factors, the possibility of political and economic instability and
the level of governmental supervision and regulation of foreign securities
markets.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of securities are
calculated on the identified cost basis. Dividend income is recorded on the
ex-dividend date; interest income is recorded on the accrual basis. Expenses are
recorded on the accrual basis which may require the use of certain estimates by
management.
Net investment income (other than distribution fees) and unrealized and realized
gains or losses are allocated daily to each class of shares based upon the
relative proportion of net assets of each class at the beginning of the day.
- --------------------------------------------------------------------------------
-----
9

<PAGE>
PRUDENTIAL WORLD FUND, INC.
Notes to Financial Statements (Unaudited) INTERNATIONAL STOCK SERIES
- --------------------------------------------------------------------------------
Taxes: For federal income tax purposes, each series in the Fund is treated as a
separate taxpaying entity. It is the intent of the Series to continue to meet
the requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its net income to shareholders. Therefore, no
federal income tax provision is required.
Withholding taxes on foreign dividends, interest and capital gains have been
provided for in accordance with the Series' understanding of the applicable
country's tax rules and regulations.
Dividends and Distributions: The Series expects to pay dividends of net
investment income and distributions of net realized capital and currency gains,
if any, annually. Dividends and distributions are recorded on the ex-dividend
date.
Income distributions and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles.
Reclassification of Capital Accounts: The Series accounts for and reports
distributions to shareholders in accordance with the American Institute of
Certified Public Accountants' Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gains, and
Return of Capital Distributions by Investment Companies. The effect of applying
this statement was to decrease undistributed net investment income and increase
accumulated net realized gain on investments by $274,199 for the six months
ended April 30, 1997, due to realized and recognized currency losses during the
period. Net investment income, net realized gains and net assets were not
affected by this change.
Deferred Organization Expenses: Approximately $64,000 of costs were incurred in
connection with the organization and initial registration of the Series and are
being amortized ratably over the period of benefit not to exceed 60 months from
the date of the Series' commencement of investment operations.
- ------------------------------------------------------------
Note 2. Agreements
The Fund has a management agreement with Prudential Investments Fund Management
LLC ('PIFM'). Pursuant to this agreement, PIFM has responsibility for all
investment advisory services and supervises the subadviser's performance of such
services. PIFM has entered into a subadvisory agreement with Mercator Asset
Management, L.P. ('Mercator'); Mercator furnishes investment advisory services
in connection with the management of the Series. PIFM pays for the cost of the
subadviser's services, the compensation of officers and employees of the Fund,
occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears
all other costs and expenses.
The management fee paid PIFM is computed daily and payable monthly at an annual
rate of 1% of the average daily net assets of the Series. PIFM pays Mercator at
an annual rate of .75 of 1% of the Series average daily net assets up to and
including $50 million, .60 of 1% of the Series' average daily net assets in
excess of $50 million up to and including $300 million and .45 of 1% of the
Series' average daily net assets in excess of $300 million.
The Fund has a distribution agreement with Prudential Securities Incorporated
('PSI') which acts as the distributor of the Class A, Class B, Class C and Class
Z shares of the Fund. The Fund compensates PSI for distributing and servicing
the Fund's Class A, Class B and Class C shares, pursuant to plans of
distribution, (the 'Class A, B and C plans') regardless of expenses actually
incurred by PSI. The distribution fees are accrued daily and payable monthly.
PSI also incurs the expenses of distributing the Fund's Class Z shares under the
distribution agreement, none of which is reimbursed or paid for by the Series.
Pursuant to the Class A, B and C Plans, the Series compensates PSI for
distribution-related activities at an annual rate of up to .30 of 1%, 1% and 1%
of the average daily net assets of the Class A, B, and C shares, respectively.
Such expenses under the Plans were .25 of 1%, 1% and 1% of the average daily net
assets of the Class A, B and C shares respectively, for the six months ended
April 30, 1997.
PSI has advised the Series that it has received approximately $496,600 in
front-end sales charges resulting from sales of Class A shares during the six
months ended April 30, 1997. From these fees, PSI paid such sales charges to
affiliated broker-dealers, which in turn paid commissions to salespersons and
incurred other distribution costs.
PSI has advised the Series that for the six months ended April 30, 1997, it
received approximately $2,700 in contingent deferred sales charges imposed upon
certain redemptions by Class B shareholders.
PSI and PIFM are indirect, wholly-owned subsidiaries of The Prudential Insurance
Company of America.
The Series, along with other affiliated registered investment companies (the
'Funds'), entered into a credit agreement (the 'Agreement') on December 31, 1996
with an unaffiliated lender. The maximum commitment under the Agreement is
$200,000,000. The Agreement expires on December 30, 1997. Interest on any such
borrowings outstanding will be
- --------------------------------------------------------------------------------
-----
10
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Notes to Financial Statements (Unaudited) INTERNATIONAL STOCK SERIES
- --------------------------------------------------------------------------------
at market rates. The purpose of the Agreement is to serve as an alternative
source of funding for capital share redemptions. The Series has not borrowed any
amounts pursuant to the Agreement as of April 30, 1997. The Funds pay a
commitment fee at an annual rate of .055 of 1% on the unused portion of the
credit facility. The commitment fee is accrued and paid quarterly on a pro-rata
basis by the Funds.
- ------------------------------------------------------------
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), a wholly-owned subsidiary of PIFM,
serves as the Fund's transfer agent. During the six months ended April 30, 1997,
the Series incurred fees of approximately $204,000 for the services of PMFS. As
of April 30, 1997 approximately $38,000 of such fees were due to PMFS. Transfer
agent fees and expenses in the Statement of Operations include certain
out-of-pocket expenses paid to non-affiliates.
- ------------------------------------------------------------
Note 4. Portfolio Securities
Purchases and sales of portfolio securities of the Series, excluding short-term
investments for the six months ended April 30, 1997 were $72,262,725 and
$12,750,412, respectively.
The federal income tax basis and unrealized appreciation/depreciation of the
Series' investments as of April 30, 1997 was substantially the same as for
financial reporting purposes and accordingly, net unrealized appreciation on
investments for federal income tax purposes was $39,256,966 (gross unrealized
appreciation--$47,915,060, gross unrealized depreciation--$8,658,094).
- ------------------------------------------------------------
Note 5. Joint Repurchase Agreement Account
The Series, along with other affiliated registered investment companies,
transfers uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or federal agency obligations. As of April 30,
1997, the Series had a 4.93% undivided interest in the joint account. The
undivided interest for the Series represents $39,963,000, in the principal
amount. As of such date, each repurchase agreement in the joint account and the
collateral therefor were as follows:
CS First Boston Corp., 5.50%, dated 4/30/97, in the principal amount of
$208,000,000, repurchase price $208,031,778, due 5/1/97. The value of the
collateral including accrued interest was $214,501,123.
J.P. Morgan Securities, 5.42%, dated 4/30/97, in the principal amount of
$208,000,000, repurchase price $208,031,316, due 5/1/97. The value of the
collateral including accrued interest was $212,160,231.
SBC Warburg, 5.30%, dated 4/30/97, in the principal amount of $144,000,000,
repurchase price $144,021,200, due 5/1/97. The value of the collateral including
accrued interest was $146,969,072.
Smith Barney, Inc., 5.25% and 5.44%, both dated 4/30/97, in the principal amount
of $43,121,000 and $208,000,000 respectively, repurchase price $43,127,288 and
$208,031,431 respectively, due 5/1/97. The value of the combined collateral
including accrued interest was $256,144,337.
- ------------------------------------------------------------
Note 6. Capital
The Series offers Class A, Class B, Class C and Class Z shares. Class A shares
are sold with a front-end sales charge of up to 5%. Class B shares are sold with
a contingent deferred sales charge which declines from 5% to zero depending on
the period of time the shares are held. Class C shares are sold with a
contingent deferred sales charge of 1% during the first year. Class B shares
automatically convert to Class A shares on a quarterly basis approximately seven
years after purchase. A special exchange privilege is also available for
shareholders who qualified to purchase Class A shares at net asset value. Class
Z shares are not subject to any sales or redemption charge and are offered
exclusively for sale to a limited group of investors.
There are 500 million authorized shares of $.01 par value common stock, divided
into four classes, designated Class A, Class B, Class C and Class Z common
stock, each of which consists of 125 million authorized shares.
- --------------------------------------------------------------------------------
-----
11
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Notes to Financial Statements (Unaudited) INTERNATIONAL STOCK SERIES
- --------------------------------------------------------------------------------
Transactions in shares of common stock for the six months ended April 30, 1997,
the period October 1, 1996 through October 31, 1996 and for the year ended
September 30, 1996 were as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
- ------------------------------------ ---------- ------------
<S> <C> <C>
Six months ended April 30, 1997:
Shares sold......................... 1,320,388 $ 23,174,586
Shares issued in reinvestment of
dividends and distributions....... 203 3,367
Shares reacquired................... (205,917) (3,619,524)
---------- ------------
Net increase in shares
outstanding....................... 1,114,674 $ 19,558,429
---------- ------------
---------- ------------
October 1, 1996 through
October 31, 1996:
Shares sold......................... 300 $ 5,035
---------- ------------
---------- ------------
September 23, 1996(a) through
September 30, 1996:
Shares sold......................... 12 $ 200
---------- ------------
---------- ------------
<CAPTION>
Class B
- ------------------------------------
<S> <C> <C>
Six months ended April 30, 1997:
Shares sold......................... 2,659,486 $ 46,625,621
Shares issued in reinvestment of
dividends and distributions....... 3 44
Shares reacquired................... (40,531) (707,641)
---------- ------------
Net increase in shares
outstanding....................... 2,618,958 $ 45,918,024
---------- ------------
---------- ------------
October 1, 1996 through
October 31, 1996:
Shares sold......................... 104 $ 1,737
---------- ------------
---------- ------------
September 23, 1996(a) through
September 30, 1996:
Shares sold......................... 12 $ 200
---------- ------------
---------- ------------
<CAPTION>
Class C Shares Amount
- ------------------------------------ ---------- ------------
<S> <C> <C>
Six months ended April 30, 1997:
Shares sold......................... 470,079 $ 8,241,837
Shares reacquired................... (7,849) (137,333)
---------- ------------
Net increase in shares
outstanding....................... 462,230 $ 8,104,504
---------- ------------
---------- ------------
September 23, 1996(a) through
September 30, 1996:
Shares sold......................... 12 $ 200
---------- ------------
---------- ------------
</TABLE>
- ---------------
(a) Commencement of offering of Class A, Class B and Class C shares.

<TABLE>
<CAPTION>
Class Z
- ------------------------------------
<S> <C> <C>
Six months ended April 30, 1997:
Shares sold......................... 5,853,289 $101,616,151
Shares issued in reinvestment of
dividends and distributions....... 312,157 5,181,808
Shares reacquired................... (5,904,699) (102,476,906)
---------- ------------
Net increase in shares
outstanding....................... 260,747 $ 4,321,053
---------- ------------
---------- ------------
October 1, 1996 through
October 31, 1996:
Shares sold......................... 558,189 $ 9,333,719
Shares reacquired................... (506,630) (8,477,063)
---------- ------------
Net increase in shares
outstanding....................... 51,559 $ 856,656
---------- ------------
---------- ------------
Year ended September 30, 1996:
Shares sold......................... 7,376,874 $115,941,617
Shares issued in reinvestment of
dividends......................... 116,607 1,739,771
Shares reacquired................... (5,027,997) (78,985,777)
---------- ------------
Net increase in shares
outstanding....................... 2,465,484 $ 38,695,611
---------- ------------
---------- ------------
</TABLE>
- --------------------------------------------------------------------------------
-----
12

<PAGE>
PRUDENTIAL WORLD FUND, INC.
Financial Highlights (Unaudited) INTERNATIONAL STOCK SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C Class Z
-------------------------------------------- -----------------------------------------
October 1, September 23, October 1, Year
Six Months 1996 1996(e) Six Months 1996 Ended
Ended Through Through Ended Through September
April 30, October 31, September 30, April 30, October 31, 30,
1997 1996 1996 1997 1996 1996
---------- ----------- ------------- ---------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of
period......................... $16.57 $ 16.47 $ 16.54 $ 16.59 $ 16.48 $ 15.25
----- ----- ----- ---------- ----------- --------
Income from investment
operations:
Net investment income (loss)...... .11 (.02) -- .17 (.01) .22
Net realized and unrealized gain
(loss) on investment and
foreign currency
transactions................... 1.40 .12 (.07) 1.42 .12 1.20
----- ----- ----- ---------- ----------- --------
Total from investment
operations.................. 1.51 .10 (.07) 1.59 .11 1.42
----- ----- ----- ---------- ----------- --------
Less distributions:
Dividends from net investment
income......................... (.20) -- -- (.24) -- (.19)
Distributions from net realized
gains.......................... (.20) -- -- (.20) -- --
----- ----- ----- ---------- ----------- --------
Total distributions............ (.40) -- -- (.44) -- (.19)
----- ----- ----- ---------- ----------- --------
Net asset value, end of period.... $17.68 $ 16.57 $ 16.47 $ 17.74 $ 16.59 $ 16.48
----- ----- ----- ---------- ----------- --------
----- ----- ----- ---------- ----------- --------
TOTAL RETURN(a)................... 9.3% .61% (.42)% 9.9% .67% 9.44%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)... $8,171 $ 200(f) $ 199(f) $208,325 $ 190,428 $188,386
Average net assets (000).......... $2,352 $ 202(f) $ 199(f) $200,349 $ 191,228 $161,356
Ratios to average net assets:
Expenses, including
distribution fees........... 2.66%(b) 2.80%(b) 3.21%(b) 1.66%(b) 1.80%(b) 1.61%(c)
Expenses, excluding
distribution fees........... 1.66%(b) 1.80%(b) 2.21%(b) 1.66%(b) 1.80%(b) 1.61%(c)
Net investment income (loss)... 1.09%(b) (1.78)%(b) 0%(b) 2.09%(b) (.78)%(b) 1.58%(c)
Portfolio turnover rate........... 6% 4% 15% 6% 4% 15%
Average commission rate paid per
share.......................... $.0302 $ .0256 $ .0222 $ .0302 $ .0256 $ .0222
<CAPTION>
November 5,
1992(d)
Year Ended Through
September 30, September 30,
1995 1994 1993
-------- -------- -------------
<S> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of
period......................... $ 14.84 $ 12.35 $ 10.00
-------- -------- ------
Income from investment
operations:
Net investment income (loss)...... .18(c) .13(c) .16(c)
Net realized and unrealized gain
(loss) on investment and
foreign currency
transactions................... .66 2.54 2.21
-------- -------- ------
Total from investment
operations.................. .84 2.67 2.37
-------- -------- ------
Less distributions:
Dividends from net investment
income......................... (.10) (.03) (.02)
Distributions from net realized
gains.......................... (.33) (.15) --
-------- -------- ------
Total distributions............ (.43) (.18) (.02)
-------- -------- ------
Net asset value, end of period.... $ 15.25 $ 14.84 $ 12.35
-------- -------- ------
-------- -------- ------
TOTAL RETURN(a)................... 5.95% 21.71% 23.74%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)... $136,685 $102,824 $31,708
Average net assets (000).......... $118,927 $ 68,476 $14,491
Ratios to average net assets:
Expenses, including
distribution fees........... 1.60%(c) 1.60%(c) 1.60%(c)/(b)
Expenses, excluding
distribution fees........... 1.60%(c) 1.60%(c) 1.60%(c)/(b)
Net investment income (loss)... 1.58%(c) 1.08%(c) 1.44%(c)/(b)
Portfolio turnover rate........... 20% 21% 15%
Average commission rate paid per
share.......................... N/A N/A N/A
</TABLE>
- ---------------
(a) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes reinvestment
of dividends and distributions. Total return for periods of less than a full
year are not annualized. Total return includes the effect of expense
subsidies/recoveries, as applicable.
(b) Annualized.
(c) Net of expense subsidy/recovery.
(d) Commencement of investment operations.
(e) Commencement of offering of Class C shares.
(f) Figures are actual and are not rounded to the nearest thousand.
- --------------------------------------------------------------------------------
-----
See Notes to Financial Statements. 14

<PAGE>
PRUDENTIAL WORLD FUND, INC.
Supplemental Proxy Information INTERNATIONAL STOCK SERIES
- --------------------------------------------------------------------------------
The Annual Meeting of Shareholders of the Prudential World Fund, Inc. (the
'Fund') was held on Wednesday, October 30, 1996 at the offices of
Prudential Securities Incorporated, One Seaport Plaza, New York, New York. The
meeting was held for the following purposes:
(1) To elect Directors as follows: Edward D Beach, Stephen C. Eyre, Delayne
Dedrick Gold, Robert F. Gunia, Don G. Hoff, Robert E. LaBlanc, Mendel A.
Melzer, Richard A. Redeker, Robin B. Smith, Stephen Stoneburn and Nancy H.
Teeters.
(2) To approve changes in the Fund's fundamental investment restrictions as
follows:
a) To amend the Fund's restrictions regarding shares of other investment
companies.
b) To amend the Fund's restrictions regarding unseasoned issuers.
c) To amend the Fund's restrictions regarding securities lending.
(3) To ratify the selection of Deloitte & Touche LLP as independent public
accountants for the fiscal year ending October 31, 1997.
The results of the proxy solicitation on the above matters were as follows:

<TABLE>
<CAPTION>
Director/Matter Votes for Votes against Abstentions
---------- ------------- -----------
<C> <S> <C> <C> <C>
(1) Edward D. Beach 17,649,913 0 724,562
Stephen C. Eyre 17,661,633 0 712,842
Delayne Dedrick Gold 17,666,403 0 708,072
Robert F. Gunia 17,695,811 0 678,664
Don G. Hoff 17,695,210 0 679,265
Robert E. LaBlanc 17,699,110 0 675,365
Mendel A. Melzer 17,671,148 0 703,327
Richard A. Redeker 17,689,892 0 684,583
Robin B. Smith 17,682,046 0 692,429
Stephen Stoneburn 17,680,268 0 694,207
Nancy H. Teeters 17,674,066 0 700,409
(2) Investment Restrictions
a) regarding shares of other investment companies 12,767,141 703,902 857,721
b) regarding unseasoned issuers 12,428,459 982,462 917,843
c) regarding securities lending 12,554,247 838,927 935,590
(3) Ratification of Deloitte & Touche LLP 17,423,504 200,859 750,112
</TABLE>
- --------------------------------------------------------------------------------
-----
15
<PAGE>

(LOGO)

Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077

(800) 225-1852
http://www.prudential.com

Directors
Edward D. Beach
Stephen C. Eyre
Delayne D. Gold
Robert F. Gunia
Don G. Hoff
Robert E. LaBlanc
Mendel A. Melzer
Richard A. Redeker
Robin B. Smith
Stephen Stoneburn
Nancy H. Teeters

Officers
Richard A. Redeker, President
Susan C. Cote, Vice President
Thomas A. Early, Vice President
Grace C. Torres, Treasurer
Stephen M. Ungerman, Assistant Treasurer
S. Jane Rose, Secretary

Manager
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077

Investment Adviser
Mercator Asset Management, L.P.
2400 East Commercial Boulevard
Fort Lauderdale, FL 33308

Distributor
Prudential Securities Incorporated
One Seaport Plaza
New York, NY 10292

Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171

Transfer Agent
Prudential Mutual Fund Services LLC
P.O. Box 15005
New Brunswick, NJ 08906

Independent Auditors
Price Waterhouse LLP
1177 Avenue of the Americas
New York, NY 10036

Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, NY 10004

The views expressed in this report and information about the
Series' portfolio holdings are for the period covered by this
report and are subject to change thereafter.

The accompanying financial statements as of April 30, 1997
were not audited and, accordingly, no opinion is expressed on them.

This report is not authorized for distribution to prospective
investors unless preceded or accompanied by a current prospectus.

<PAGE>
(LOGO)

Prudential Mutual Funds BULK RATE
Gateway Center Three U.S. POSTAGE
100 Mulberry Street PAID
Newark, NJ 07102-4077 Permit 6807
(800) 225-1852 New York, NY

743969503 MF115E4
743969602 Cat#42M273P
743969701
743969800