<PAGE>
PRICING SUPPLEMENT NO. 20 Rule 424(b)(3)
DATED: February 24, 1997 File No. 333-17985
(To Prospectus dated January 22, 1997
and Prospectus Supplement dated January 22, 1997)
$5,434,620,162
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
$25,000,000 [x] [x]
Original Issue Date: Fixed Rate Notes Certificated Notes
February 27, 1997 [_] [_]
Maturity Date:
February 26, 1999
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: ***
Index Maturity: Three Months
Spread (plus or minus): +0.07%
-------------------------
* On the 26th of each February, May, August and November.
** On the 26th of each February, May, August, November and at
maturity.
*** Three month LIBOR as of February 25, 1997, plus 7 basis points.
The distribution of Notes will conform to the requirements set forth
in Rule 2720 of the NASD Conduct Rules.
NYFS04...:\25\22625\0122\1824\GGG2237R.12C
