Morgan Stanley Finance LLC filed a preliminary pricing supplement (No. 17,783) on August 3, 2026 under Rule 424(b)(2), disclosing the terms of Jump Securities with an Auto-Callable Feature due August 29, 2031, linked to the worst performing of three equity indexes.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer; Morgan Stanley fully and unconditionally guarantees the securities.
  • Stated principal and issue price: $1,000 per security, with an estimated value on the pricing date of approximately $939.50 per security, or within $55.00 of that estimate.
  • Underliers: The Nasdaq-100 Technology Sector Index, the Russell 2000 Index, and the S&P 500 Index, with returns based on the worst performing of the three.
  • Auto-call feature: If each underlier closes at or above 100% of its initial level on September 2, 2027, the securities are redeemed early at $1,200 to $1,210 per security on September 8, 2027.
  • Upside at maturity: If all underliers finish above their initial levels, investors receive the stated principal amount plus an upside payment calculated at a 150% participation rate on the worst performing underlier's return.
  • Downside threshold: Each underlier has a downside threshold set at 70% of its initial level; a breach by any underlier results in losses equal to 1% for every 1% decline in the worst performing underlier, with the payment potentially falling to zero.
  • Maturity date: August 29, 2031, with a final determination date of August 26, 2031.

Terms and Risk Structure of the MSFL Jump Securities Linked to Three Indexes

According to the preliminary pricing supplement, the securities are unsecured obligations of Morgan Stanley Finance LLC issued as part of its Series A Global Medium-Term Notes program, with CUSIP 61781DJE9 and ISIN US61781DJE94. The pricing date and strike date are both August 26, 2026, and the original issue date is August 31, 2026. Morgan Stanley and Co. LLC, an affiliate of MSFL, is the agent. The securities will not be listed on any securities exchange.

The filing discloses that the estimated value of approximately $939.50 per security on the pricing date is less than the $1,000 issue price because "this price includes costs associated with issuing, selling, structuring and hedging the securities, which are borne by you." The filing also states that all payments are subject to the credit risk of the issuer and guarantor, and that the securities are not insured by the FDIC or any other governmental agency. The filing notes the securities are "for investors who are willing to risk their principal and forgo current income in exchange for the possibility of receiving an early redemption payment or payment at maturity that exceeds the stated principal amount."

The filing emphasizes that linking the securities to three indexes does not provide asset diversification benefits. Instead, according to the supplement, "a decline in the level of any underlier beyond its downside threshold level will adversely affect your return on the securities, even if the other underliers have appreciated or have not declined as much." At maturity, if any underlier's final level is below its 70% downside threshold, the payment is calculated as the stated principal amount multiplied by the performance factor of the worst performing underlier, and "could be zero."

What Was Disclosed

The filing disclosed the preliminary terms of structured notes due August 29, 2031, including a single auto-call opportunity on September 2, 2027, a 150% upside participation rate, a 70% downside threshold for each underlier, and an estimated value of approximately $939.50 per security against a $1,000 issue price.