Notes to Financial Statements PRUDENTIAL EQUITY FUND, INC.
Prudential Equity Fund, Inc. (the 'Fund') is registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The investment objective of the Fund is long-term
growth of capital. The Fund invests primarily in common stocks of major, established corporations.
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 traded on an exchange and NASDAQ National Market System securities are
valued at the last reported sales price on the exchange or system on which they are traded or, if no sale was
reported on that date, at the mean between the last reported bid and asked prices or at the bid price on such day
in the absence of an asked price. Securities traded in the over-the-counter market (including securities listed on
exchanges whose primary market is believed to be over-the-counter) are value by an independent pricing agent
or principal market maker. Short-term securities which mature in more than 60 days are valued based at current
market quotations. Short-term securities which mature in 60 days or less are valued at amortized cost. Securities
for which reliable market quotations are not readily available are valued by the Valuation Committee based upon
procedures adopted by the Board of Directors in consultation with the manager or subadviser.
In connection with transactions in repurchase agreements with U.S. financial institutions, it is the Fund's policy that
its custodian or designated subcustodians under triparty repurchase agreements, as the case may be, take
possession of the underlying collateral 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