SECURITIES AND EXCHANGE COMMISSION
                       WASHINGTON, D.C.  20549


                               FORM 10-Q
        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
                THE SECURITIES EXCHANGE ACT OF 1934

                FOR THE QUARTER ENDED OCTOBER 31, 2000
                       COMMISSION FILE NO. 1-9015


                           MORGAN KEEGAN, INC.
       (Exact name of Registrant as specified in its charter)


        Tennessee                                62-1153850
  (State or other jurisdiction of            (I.R.S. Employer
   incorporation or organization)           Identification No.)

     Fifty Front Street
     Memphis, Tennessee                             38103
   (Address of principal                         (Zip Code)
     executive offices)

                            901-524-4100
        (Registrant's telephone number, including area code)

                               N/A
        (Former name, former address and former fiscal year,
                  if changed since last report)

  Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for at least the past 90 days.  Yes  X     No     .



                APPLICABLE ONLY TO CORPORATE ISSUERS:

   Indicate the number of shares outstanding of each of the issuer's
classes of Common Stock, as of the latest practical date.

          Class                     Outstanding at October 31, 2000
  Common Stock $.625 par value               28,562,566




                             Page 1 of 15
<PAGE>
INDEX

MORGAN KEEGAN, INC. and Subsidiaries



Part I.  FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited).

  Consolidated Statements
    of Financial Condition. . . . . . October 31, 2000 and July 31, 2000

  Consolidated Statements
    of Income . . . . . . . . . . . . Three months ended
                                      October 31, 2000 and 1999

  Consolidated Statements
    of Cash Flows . . . . . . . . . . Three months ended
                                      October 31, 2000 and 1999

  Notes to Consolidated
    Financial Statements. . . . . . . October 31, 2000

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk.



Part II.  Other Information

Item 1.  Legal proceedings

Item 2.  Changes in Securities

Item 3.  Defaults upon Senior Securities

Item 4.  Submission of Matters to a Vote of Security Holders

Item 5.  Other Information

Item 6.  Exhibits and Reports on Form 8-K

Signatures






                             Page 2 of 15


<PAGE>
Part I.  FINANCIAL INFORMATION

Item 1.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

MORGAN KEEGAN, INC. and Subsidiaries
<TABLE>
<CAPTION>
                                                October 31        July 31
                                                   2000            2000
                                                (unaudited)
                                                      (in thousands)
<S>                                            <C>             <C>
ASSETS
  Cash                                         $   19,496      $   19,716
  Securities segregated for regulatory
    purposes, at market                           329,500         170,600
  Deposits with clearing organizations
    and others                                      9,878          11,846
  Receivable from brokers and dealers and
    clearing organizations                         38,086          14,062
  Receivable from customers                       745,202         713,485
  Securities purchased under agreements
    to resell                                     324,482         310,935
  Securities owned, at market                     477,112         390,656
  Memberships in exchanges, at cost
    (market value-$6,188,000 at 10-31-00;
     $5,780,000 at 7-31-00)                         2,411           2,428
  Furniture, equipment and leasehold
    improvements, at cost (less allowances for
    depreciation and amortization $26,810,000
    at 10-31-00; $30,524,000 at 7-31-00)           27,009          26,498
  Other assets                                     84,356          72,050

                                               $2,057,532      $1,732,276

LIABILITIES AND STOCKHOLDERS' EQUITY
  Short-term borrowings                        $  156,384      $  100,290
  Commercial paper                                110,407          70,741
  Payable to brokers and dealers and
    clearing organizations                         15,419          18,768
  Payable to customers                          1,003,721         829,517
  Customer drafts payable                          16,251          17,752
  Securities sold under agreements to
    repurchase                                    305,079         207,488
  Securities sold, not yet purchased,
    at market                                      93,528         130,851
  Other liabilities                                89,349          98,240
                                                1,790,138       1,473,647
Stockholders' equity
  Common Stock, par value $.625 per share:
    authorized 100,000,000 shares;
    shares issued and outstanding 28,562,566
    at 10-31-00; 28,549,066 at 7-31-00             17,851          17,842
  Retained earnings                               249,543         240,787
                                                  267,394         258,629

                                               $2,057,532      $1,732,276
</TABLE>
[FN]

See accompanying notes.
</FN>



                             Page 3 of 15

<PAGE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

MORGAN KEEGAN, INC. and Subsidiaries

<TABLE>
<CAPTION>
                                                  Three Months Ended
                                                       October 31

                                                 2000           1999
                                                (in thousands, except
                                                  per share amounts)

<S>                                            <C>            <C>
REVENUES
  Commissions                                  $ 35,024       $ 27,279
  Principal transactions                         38,942         30,623
  Investment banking                             12,425         11,884
  Interest                                       28,976         22,345
  Investment management fees                     10,587          7,903
  Other                                           5,546          3,001
          TOTAL                                 131,500        103,035

EXPENSES
  Compensation                                   65,983         53,125
  Floor brokerage and clearance                   1,879          1,770
  Communications                                  7,233          6,559
  Travel and promotional                          3,691          3,950
  Occupancy and equipment costs                   6,372          5,862
  Interest                                       21,042         15,204
  Taxes, other than income taxes                  2,746          2,267
  Other operating expenses                        6,881          2,433
                                                115,827         91,170


INCOME BEFORE INCOME TAXES                       15,673         11,865
INCOME TAX EXPENSE                                5,800          4,400

NET INCOME                                     $  9,873       $  7,465

NET INCOME PER SHARE:
  Basic                                        $   0.35       $   0.25
  Diluted                                      $   0.34       $   0.24

DIVIDENDS PER SHARE                            $   0.09       $   0.08

WEIGHTED AVERAGE COMMON
  SHARES OUTSTANDING:
      Basic                                      28,557         30,402
      Diluted                                    28,644         30,505


</TABLE>
[FN]
See accompanying notes.
</FN>

                             Page 4 of 15

<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

MORGAN KEEGAN, INC. and Subsidiaries
<TABLE>
<CAPTION>
                                                        Three Months Ended
                                                            October 31
                                                        2000          1999
                                                          (in thousands)
<S>                                                  <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Income                                         $  9,873        $ 7,465
  Adjustments to reconcile net income to
      cash used for operating activities:
    Depreciation and amortization                       2,720          2,699
    Deferred income taxes                                (300)          (400)
    Amortization of gain on sale of building
      and related assets                                 (345)          (345)
    Amortization of restricted stock                    1,350          1,200
                                                       13,298         10,619
 (Increase) decrease in operating assets:
    Receivable from brokers and dealers and
      clearing organizations                          (24,024)       (11,158)
    Deposits with clearing organizations and others     1,968
    Receivable from customers                         (31,717)       (64,291)
    Securities segregated for regulatory purposes    (158,900)        43,300
    Securities owned                                  (86,456)        63,099
    Other assets                                      (12,006)         1,843
  Increase (decrease) in operating liabilities:
    Payable to brokers and dealers and clearing
      organizations                                    (3,349)        35,455
    Payable to customers                              174,204        (10,532)
    Customer drafts payable                            (1,501)          (302)
    Securities sold, not yet purchased                (37,323)        30,238
    Other liabilities                                  (8,546)       (15,092)
                                                     (187,650)        72,560
  Cash (used for) provided by operating activities   (174,352)        83,179

CASH FLOWS FROM FINANCING ACTIVITIES
  Commercial paper                                     39,666         (9,833)
  Issuance of Common Stock                                109             82
  Retirement of Common Stock                              -          (42,751)
  Dividends paid                                       (2,567)        (2,399)
  Short-term borrowings                                56,094         55,200
  Securities purchased under agreements to resell     (13,547)       (30,998)
  Securities sold under agreements to repurchase       97,591        (46,683)
    Cash provided by (used for) financing activities  177,346        (77,382)

CASH FLOWS FROM INVESTING ACTIVITIES
  Payments for furniture, equipment and
    leasehold improvements                             (3,231)        (2,903)
  Other                                                    17            -
  Cash used for investing activities                   (3,214)        (2,903)
      (Decrease) increase in Cash                        (220)         2,894
Cash at Beginning of Period                            19,716         16,102
Cash at End of Period                                $ 19,496       $ 18,996


</TABLE>
[FN]
Income tax payments were approximately $713,000 and $562,000 for the three
month periods ending October 31, 2000, and 1999, respectively.  Interest
payments were approximately $18,211,000 and $14,953,000 for the same
periods, respectively.

See accompanying notes.
</FN>


                             Page 5 of 15

<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MORGAN KEEGAN, INC. and Subsidiaries

October 31, 2000

NOTE A - BASIS OF PRESENTATION

The consolidated financial statements include the accounts of
Morgan Keegan, Inc. and its subsidiaries (collectively referred
to as the Registrant).  The accompanying unaudited
consolidated financial statements have been prepared in accordance
with the instructions to Form 10-Q and Rule 10-01 of Regulation
S-X.  Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting
principles for complete financial statements.  In the
opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation
have been included.  Operating results for the three
months ended October 31, 2000, are not necessarily indicative
of the results that may be expected for the year ending July
31, 2001.  For further information, refer to the financial
statements and notes thereto included in the Registrant's
annual report on Form 10-K for the year ended July 31, 2000.

NOTE B - NET CAPITAL REQUIREMENT

As a registered broker/dealer and member of the New
York Stock Exchange, the registrant's brokerage subsidiary,
Morgan Keegan & Company, Inc. (M.K. & Co.) is subject to the
Securities and Exchange Commission's (SEC) uniform net
capital rule.  The broker/dealer subsidiary has elected
to operate under the alternative method of the rule, which
prohibits a broker/dealer from engaging in any securities
transactions when its net capital is less than 2% of
its aggregate debit balances, as defined, arising
from customer transactions.  The SEC may also require a
member firm to reduce its business and restrict
withdrawal of subordinated capital if its net capital is
less than 4% of aggregate debit balances, and may prohibit
a member firm from expanding its business and declaring cash
dividends if its net capital is less than 5% of aggregate
debit balances.  At October 31, 2000, M.K. & Co. had net
capital of $145,543,997 which was 19% of its aggregate
debit balances and $130,345,054 in excess of the 2%
net capital requirement.

NOTE C - INCOME TAXES

The principal reason for the difference between the
Registrant's effective tax rate and the federal statutory
rate is the non-taxable interest earned on municipal bonds.



                             Page 6 of 15

<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MORGAN KEEGAN, INC. and Subsidiaries


NOTE D - NET INCOME PER SHARE

The following table sets forth the computation of basic and
diluted earnings per share:
<TABLE>
<CAPTION>

                                        Three Months Ended
                                            October 31
                                       2000             1999
                                       (in thousands, except
                                         per share amounts)

<S>                                  <C>             <C>
Numerator

  Net Income                         $ 9,873         $ 7,465

Denominator

  Denominator for basic
   earnings per share -
   weighted average
   shares                             28,557          30,402


  Effect of dilutive
   securities - stock
   options                                87             103

  Denominator for diluted
   earnings per share -
   adjusted weighted
   average shares and
   assumed conversions                28,644          30,505

  Basic earnings per share           $  0.35         $  0.25
  Diluted earnings per share         $  0.34         $  0.24



</TABLE>

NOTE E - OTHER ACCOUNTING PRONOUNCEMENTS

Effective August 1, 2000, the Registrant adopted Financial
Accounting Standards Board Statement No. 133, "Accounting
for Derivative and Hedging Activities", as amended by Statement
Nos. 137 and 138 (collectively, the Statements).  The Statements
require derivatives to be recorded on the statement of
financial condition at fair value, with changes in fair value
recognized in income, stockholders' equity, or as adjustments
to the carrying value of assets and liabilities, depending on
the use of the derivative.  The adoption of the Statements
had no material effect on the Registrant's financial statements.
The Registrant's broker/dealer subsidiary does trade in
certain derivative securities on behalf of its customers, but
generally does not act as principal in such trades.



                             Page 7 of 15

<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MORGAN KEEGAN, INC. and Subsidiaries

NOTE F - Business Segment Information

The Registrant provides financial services through five
business segments: Investment Advisory; Private Client; Equity
Capital Markets; Fixed Income Capital Markets; and Other.
Segment results include all direct revenues and expenses
of the operating units in each segment and allocations of
indirect expenses based on specific methodologies.

Investment Advisory provides investment advisory services to
Company-sponsored mutual funds and asset management for
institutional and individual clients.

Private Client distributes a wide range of financial products
through its branch distribution network, including equity
and fixed income securities, proprietary and non-affiliated
mutual funds and annuities. Net interest income for customers'
margin loan and credit account balances is included in this segment.

Equity Capital Markets consists of the Registrant's
equity institutional sales and trading, syndicate, and
corporate finance activities.  Sales credits associated
with underwritten offerings are reported in the Private Client
segment when sold through retail distribution channels and
in the Equity Capital Markets segment when sold through
institutional distribution channels.

Fixed Income Capital markets consists of the Registrant's
fixed income institutional sales and trading, syndicate,
and public finance activities.

Other businesses are principally the Registrant's Athletic
Resource Management business and unallocated corporate
revenues and expenses.



                             Page 8 of 15

<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MORGAN KEEGAN, INC. and Subsidiaries


NOTE F - Business Segment Information (continued)

Business segment financial results for the three month periods
ending October 31, 2000 and 1999 are as follows:
<TABLE>
<CAPTION>

                                         October 31    October 31
                                            2000          1999
<S>                                      <C>            <C>
Revenues:
  Private Client                         $ 58,628       $ 47,420
  Fixed Income Capital Markets             41,298         33,891
  Equity Capital Markets                   17,450         12,572
  Investment Advisory                      10,887          7,917
  Other                                     3,237          1,235
   Total                                 $131,500       $103,035

Income before income taxes:
  Private Client                         $  6,449       $  5,154
  Fixed Income Capital Markets              5,369          4,649
  Equity Capital Markets                    2,712          1,263
  Investment Advisory                         722            612
  Other                                       421            187
   Total                                 $ 15,673       $ 11,865

</TABLE>

Segment data includes charges allocated to each segment.
Intersegment revenues and charges are eliminated between
segments. The Registrant evaluates the performance of its
segments and allocates resources to them based on
return on investment.

The Registrant has not disclosed asset information by segment
as the information is not produced internally.  All long-lived
assets are located in the U.S.

The Registrant's business is predominantly in the U.S., with
less than 1% of revenues and net income from international
operations.





                             Page 9 of 15

<PAGE>
Part I.  FINANCIAL INFORMATION
Item 2.
MANAGEMENT'S DISCUSSION & ANALYSIS
  OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MORGAN KEEGAN, INC. and Subsidiaries

Morgan Keegan, Inc. (The Registrant) operates a full service
regional brokerage business through its principal subsidiary,
Morgan Keegan & Company, Inc. (M.K. & Co.).  M.K. & Co. is
involved in the highly competitive business of
origination, underwriting, distribution, trading and brokerage
of fixed income and equity securities and also provides
investment advisory services. While M.K. & Co. regularly
participates in the trading of some derivative securities
for its customers, this trading is not a major portion of
M.K. & Co.'s business. Many highly volatile factors affect
revenues, including general market conditions, interest
rates, investor sentiment and world affairs, all of which
are outside the Registrant's control.  However, certain
expenses are relatively fixed.  As a result, net earnings
can vary significantly from quarter to quarter,
regardless of management's efforts to enhance revenues
and control costs.

Results of Operations

The Registrant's revenues increased 28% to $131,500,000
for the quarter ended October 31, 2000 versus revenues of
$103,035,000 for the same period in the prior year.
The major components of this increase included a 34%
increase in investment management fees, a 28% increase in
commissions, a 27% increase in principal transactions
and a 30% increase in interest income.  The increases
represent solid business throughout the firm with
strong revenue increases in both the equity and fixed
income capital markets groups.  Business was slightly
better among institutional clients than individual investors.

Operating expenses were $115,827,000 for the quarter ended
October 31, 2000 versus $91,170,000 for the same quarter
of the previous year. Employee compensation increased
24% and is relative to the increase in revenues.  Interest
expense increased 38% due to increased level of inventory
carried during the quarter, but was only slightly ahead
of the 30% increase in interest income.  Other operating
expenses increased $4,448,000, or 183% over the same
period in the previous year due primarily to legal expenses
including the $1,900,000 charge from legal settlements
previously reported in the Registrant's Form 10-K.

Net income for the quarter ended October 31, 2000 was
$9,873,000, or $0.35 per basic share, and was 32% higher
than the same period of the previous year when net
income was $7,465,000, or $0.25 per basic share.

                             Page 10 of 15


<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
  OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MORGAN KEEGAN, INC. and Subsidiaries

Liquidity and Capital Resources

High liquidity is reflected in the Registrant's statement
of financial condition with approximately 95% of its assets
consisting of cash or assets readily convertible into cash.
Financing resources include the Registrant's equity
capital, commercial paper, short-term borrowings,
repurchase agreements and other payables.  For the three
months ended October 31, 2000 cash flows used for operating
activities were $174,352,000 primarily due to a $158,900,000
increase in securities segregated for regulatory purposes
and an $86,456,000 increase in securities owned.

Cash flows from financing activities were $177,346,000 for
the three months ended October 31, 2000 compared to cash
flows used for financing activities of $77,382,000 for the
same period of the previous year.  The largest components
of this change include a $97,591,000 increase in securities
sold under agreements to repurchase and a $56,094,000
increase in short-term borrowings.

Cash flows from investing activities during the three
months ended October 31, 2000 were $3,214,000.  This
investing activity is a continuation of the Registrant's
efforts to upgrade and maintain the broker/dealer subsidiary's
branch network.  The Board of Directors increased the
quarterly dividend from $0.08 per share to $0.09 per share.
Total dividends paid during the quarter were $2,567,000.








                             Page 11 of 15

<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
  OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MORGAN KEEGAN, INC. and Subsidiaries

Forward Looking Statements

This Form 10-Q may contain or incorporate by reference statements
which may constitute "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of
1934, as amended.  Prospective investors are cautioned that
any such forward-looking statements are not guarantees
for future performance and involve risks and uncertainties,
and that actual results may differ materially from those
contemplated by such forward-looking statements.







                             Page 12 of 15

<PAGE>
Part I.  FINANCIAL INFORMATION

Item 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

MORGAN KEEGAN, INC. and Subsidiaries


Interest Rate Sensitivity

No significant changes have occurred since July 31, 2000
in the Registrant's exposure to market risk.  See Item 2.
Management's Discussion and Analysis of Financial Condition
and Results of Operations.










                             Page 13 of 15

<PAGE>
PART II. OTHER INFORMATION

MORGAN KEEGAN, INC. and Subsidiaries

Item 1.  Legal proceedings

         Morgan Keegan & Company, Inc. is subject to various
         Claims incidental to its securities business.
         While the ultimate resolution of pending litigation
         and claims cannot be predicted with certainty,
         based upon the information currently known,
         management is of the opinion that it has meritorious
         defenses and has instructed its counsel to vigorously
         defend such lawsuits and claims, and that liability,
         if any, resulting from all litigation will have
         no material adverse effect on the Registrant's
         consolidated financial condition or results
         of operations.

Item 2.  Changes in Securities

         None

Item 3.  Defaults upon Senior Securities

         None

Item 4.  Submission of Matters to a Vote of Security Holders

         None

Item 5.  Other Information

         None


Item 6.  Exhibits and Reports on Form 8-K

         a.  Exhibits

             Exhibit 27 - Financial Data Schedule

         b.  Reports on Form 8-K

             No reports were filed during the quarter on Form 8-K










                             Page 14 of 15

<PAGE>
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.


                                        Morgan Keegan, Inc.
                                           Registrant



                                  BY   /s/Joseph C. Weller
                                             Joseph C. Weller
                                             EVP, CFO, Sec.-Treas.


Date:       December 13, 2000

































                             Page 15 of 15
??