NOTES TO FINANCIAL STATEMENTS PRUDENTIAL EMERGING GROWTH FUND, INC.
Prudential Emerging Growth Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940 as
a diversified, open-end management investment company. The Fund was incorporated in Maryland on August
23, 1996. The Fund issued 2,500 shares each of Class A, Class B, Class C and Class Z common stock for
$100,000 on October 21, 1996 to Prudential Investments Fund Management LLC ("PIFM"). Investment
operations commenced on December 31, 1996.
The Fund's investment objective is to achieve long-term capital appreciation by investing primarily in equity
securities of small and medium sized U.S. companies, ranging from $500 million to $4.5 billion in market
capitalization, with the potential for above-average growth.
NOTE 1. ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the Fund in the preparation of its
SECURITIES VALUATION: Securities listed on a securities exchange (other than options on stock and stock
indices) are valued at the last sales price on the day of valuation, or, if there was no sale on such day, at the mean
between the closing bid and asked prices on such day, or at the bid price in the absence of an asked price as
provided by a pricing service. Securities that are actively traded in the over-the-counter market, including listed
securities for which the primary market is believed to be over-the-counter, are valued by an independent pricing
service. Securities that are actively traded in the over-the-counter market, including listed securities for which the
primary market is believed to be over-the-counter, are valued by a principal market maker or independent
pricing agent. Options on securities and indices traded on an exchange are valued at the mean between the most
recently quoted bid and asked prices provided by the respective exchange. Futures contracts and options
thereon are valued at the last sales price as of the close of bus