Morgan Stanley Finance LLC filed a free writing prospectus on November 11, 2026, for 1.5-Year Trigger Jump Securities linked to an equally weighted basket of ten stocks, with a pricing date of November 30, 2026, and an original issue date of December 3, 2026.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley as guarantor; all payments are subject to Morgan Stanley's credit risk.
  • Upside payment: If the final basket value is at or above the initial basket value, investors receive $1,000 plus an upside payment of $249.00 per security (24.90% of the $1,000 stated principal amount).
  • Downside threshold: The downside threshold level is 80% of the initial basket value; if the basket declines by no more than 20%, the payment at maturity is $1,000 with no return of gains.
  • Principal loss risk: If the final basket value falls below the downside threshold, the filing states the payment "will be significantly less than the stated principal amount of $1,000, and will represent a loss of more than 20%, and possibly all, of your investment."
  • Estimated value: The estimated value of the securities is $953.80 per security, or within $35.00 of that estimate, according to the filing.
  • Maturity and valuation: The maturity date is June 5, 2028, with a valuation date of May 31, 2028, subject to postponement for non-trading days and certain market disruption events.
  • No exchange listing: According to the filing, "the securities will not be listed on any securities exchange and secondary trading may be limited."

Terms and Structure of Morgan Stanley Finance LLC's Ten-Stock Basket Securities

According to the filing, the securities are linked to an equally weighted basket of ten stocks, each carrying a 10% weighting. The basket components are Bloom Energy Corporation class A common stock (BE), EQT Corporation common stock (EQT), Cheniere Energy, Inc. common stock (LNG), GE Vernova Inc. common stock (GEV), NextEra Energy, Inc. common stock (NEE), Trane Technologies plc ordinary shares (TT), Vertiv Holdings Co class A common stock (VRT), Vistra Corp. common stock (VST), The Williams Companies, Inc. common stock (WMB), and Exxon Mobil Holdings Corporation common stock (XOM). The initial basket value is set at 100, with component multipliers to be determined on the pricing date of November 30, 2026.

The filing describes three payment scenarios at maturity. If the final basket value equals or exceeds the initial basket value, the investor receives $1,000 plus the fixed upside payment of $249.00 per security. If the basket declines but remains at or above 80% of the initial basket value, the investor receives the $1,000 stated principal amount with no additional return. If the basket falls below the 80% threshold, the payment equals $1,000 multiplied by the basket performance factor, calculated as the final basket value divided by the initial basket value, exposing the investor to losses proportional to the basket's decline.

The filing also discloses that the estimated value of $953.80 per security is below the $1,000 issue price, noting that costs associated with "issuing, selling, structuring and hedging the securities" are included in the original issue price and reduce the economic terms of the securities. The securities carry CUSIP 61781T2H5 and ISIN US61781T2H50. Morgan Stanley Finance LLC is described as having "no independent operations" and "no independent assets" as a finance subsidiary, with Morgan Stanley serving as guarantor.

What Was Disclosed

Morgan Stanley Finance LLC filed a free writing prospectus for structured securities linked to a ten-stock basket with a fixed upside of 24.90%, a 20% downside buffer, an estimated per-security value of $953.80, and a maturity date of June 5, 2028.