Morgan Stanley Finance LLC filed a Free Writing Prospectus to Preliminary Pricing Supplement No. 19,873 on November 2, 2026, describing the terms of Worst-of INDU and RTY Dual Directional Buffered Participation Securities due June 2, 2028.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley as guarantor.
  • Underliers: The securities are linked to the worst performing of the Dow Jones Industrial Average (INDU) and the Russell 2000 Index (RTY).
  • Maximum upside payment: $1,365 per security, or 136.50% of the stated principal amount.
  • Buffer amount: 15%, with a maximum loss of 85% of principal per the filing.
  • Estimated value: $978.20 per security, or within $35.00 of that estimate, according to the filing.
  • Pricing date: November 30, 2026; maturity date is June 2, 2028.
  • CUSIP: 61781TTC7.

Terms and Structure of the Buffered Participation Securities

According to the filing, the securities are issued under Registration Statement Nos. 333-293641 and 333-293641-01. The stated principal amount per security is $1,000, and the upside participation rate and the absolute return participation rate are each 100%, as disclosed. The observation date is May 30, 2028, and all payments are described as subject to the credit risk of Morgan Stanley Finance LLC and its guarantor, Morgan Stanley.

The filing describes three payment scenarios at maturity. In the upside scenario, if the worst performing underlier appreciates, investors receive $1,000 plus the gain, up to the maximum of $1,365 per security. In the absolute return scenario, the filing states that if the worst performing underlier depreciates up to 15%, investors receive a positive return equal to the absolute value of that decline. For example, if the worst performing underlier depreciates 5%, investors receive $1,050 per security. Beyond the 15% buffer, losses apply on a one-to-one basis, according to the filing.

The filing includes a hypothetical table showing that a 15% decline results in a payment of $1,150 per security, a 16% decline results in $990 per security, a 50% decline results in $650 per security, and a 100% decline results in $150 per security. The filing notes that the estimated value of $978.20 per security is "determined by reference to our pricing and valuation models, which may differ from those of other dealers and is not a maximum or minimum secondary market price." The securities will not be listed on any securities exchange, and secondary trading may be limited, according to the filing.

What Was Disclosed

Morgan Stanley Finance LLC disclosed the preliminary terms of structured securities linked to the worst of the INDU and RTY indexes, including a 15% downside buffer, a maximum upside of 136.50%, an estimated value of $978.20 per security, and a maturity date of June 2, 2028.