Morgan Stanley Finance LLC filed a Free Writing Prospectus to Preliminary Pricing Supplement No. 19,788 on November 2, 2026, outlining terms for Fixed Income Buffered Auto-Callable Securities linked to the S&P U.S. Equity Momentum 40% VT 4% Decrement Index, with a stated maturity date of November 28, 2031.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer; Morgan Stanley is the guarantor, according to the filing.
  • Fixed coupon range: The securities carry a fixed coupon of 7.00% to 8.00% per annum, paid quarterly.
  • Auto-call threshold: Securities will be automatically redeemed if the underlier closes at or above 90% of the initial level on any quarterly redemption determination date, beginning after one year.
  • Buffer amount: A 15% buffer applies at maturity, meaning the maximum loss is 85% of principal, with all payments subject to the issuer's credit risk.
  • Estimated value: The filing states an estimated value of $913.10 per security, or within $55.00 of that estimate, against a $1,000 face amount.
  • Pricing and maturity dates: The pricing date is November 24, 2026; the final observation date and maturity date are November 24, 2031 and November 28, 2031, respectively.
  • CUSIP: 61781TPZ0, with the securities not listed on any securities exchange, according to the filing.

Terms and Structure of the SPUMP40 Buffered Auto-Callable Securities

According to the filing, the securities are linked to the S&P U.S. Equity Momentum 40% VT 4% Decrement Index (SPUMP40), an index established on March 14, 2022 that the filing describes as having "very limited operating history." The index incorporates a 4% per annum decrement, which the filing states "will adversely affect the performance of the Index in all cases, whether the Index appreciates or depreciates." The securities are registered under Registration Statement Nos. 333-293641 and 333-293641-01.

The filing provides a hypothetical payment table illustrating that, if the securities are not automatically redeemed and the underlier declines by 15%, the payment at maturity remains $1,000.00 per security. A 16% decline results in a payment of $990.00, a 50% decline yields $650.00, and a 100% decline yields $150.00, excluding any fixed coupon payable at maturity. The filing notes that investors "will not participate in any appreciation in the value of the underlier."

The filing discloses that the estimated value of $913.10 per security is below the original issue price and is "determined by reference to our pricing and valuation models, which may differ from those of other dealers." Costs associated with "issuing, selling, structuring and hedging the securities" are included in the original issue price and are described as reducing the economic terms of the securities. The filing also states that as a finance subsidiary, MSFL "has no independent operations and will have no independent assets," with Morgan Stanley serving as guarantor.

What Was Disclosed

Morgan Stanley Finance LLC disclosed the preliminary terms of auto-callable, buffered structured notes linked to the SPUMP40 index, including a fixed coupon of 7.00% to 8.00% per annum, a 15% principal buffer, an estimated value of $913.10 per security, and a maturity date of November 28, 2031.