<PAGE>
PRICING SUPPLEMENT NO. 78 Rule 424(b)(3)
DATED: October 16, 1996 File No. 333-03685
(To Prospectus dated May 23, 1996
and Prospectus Supplement dated May 23, 1996)
$4,954,795,162
THE BEAR STEARNS COMPANIES INC.
MEDIUM-TERM NOTES, SERIES B
WITH MINIMUM MATURITY OF NINE MONTHS FROM DATE OF ISSUE
Principal Amount: Floating Rate Notes Book Entry Notes
$50,000,000 [x] [x]
Original Issue Date: Fixed Rate Notes Certificated Notes
10/18/96 [_] [_]
Maturity Date: 10/20/97
Option to Extend Maturity: No [x]
Yes [_] Final Maturity Date:
Optional Optional
Redemption Repayment Repayment
Redeemable On Price(s) Date(s) Price(s)
------------- -------- ------- --------
N/A N/A N/A N/A
Applicable Only to Fixed Rate Notes:
------------------------------------
Interest Rate:
Applicable Only to Floating Rate Notes:
--------------------------------------
Interest Rate Basis: Maximum Interest Rate: N/A
[_] Commercial Paper Rate Minimum Interest Rate: N/A
[_] Federal Funds Rate Interest Reset Date(s): *
[_] Treasury Rate Interest Reset Period: Quarterly
[_] LIBOR Reuters Interest Payment Date(s): **
[x] LIBOR Telerate
[_] Prime Rate Interest Payment Period: Quarterly
[_] CMT Rate
Initial Interest Rate: 5.51516%
Index Maturity: Three month
Spread (plus or minus): -0.02%
- -------------------------
* 01/20/97, 04/18/97 and 07/18/97.
** 01/20/97, 04/18/97, 07/18/97 and 10/20/97.
The distribution of Notes will conform to the requirements set forth
in the applicable sections of Schedule E to the By-laws of the
National Association of Securities Dealers, Inc.
NYFS04...:\25\22625\0122\1773\FFF0166U.340
