Morgan Stanley Finance LLC filed a Free Writing Prospectus on November 3, 2026, summarizing the terms of Worst-of INDU and SPX Enhanced Trigger Jump Securities due December 21, 2027, under Registration Statement Nos. 333-293641 and 333-293641-01.

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: The filing states a fixed upside payment of $86 per security, equal to 8.60% of the stated principal amount, regardless of how much the worst performing underlier appreciates above zero.
  • Downside threshold: The downside threshold level is set at 71% of the initial level for each underlier; losses below that level are passed through in full to investors.
  • Estimated value: The filing discloses an estimated value of $986.10 per security, or within $35.00 of that estimate, which is less than the original issue price.
  • Key dates: Pricing date is November 16, 2026; observation date is December 16, 2027; maturity date is December 21, 2027.
  • CUSIP: The securities carry CUSIP 61781TUR2 and, according to the filing, will not be listed on any securities exchange.
  • Underliers: Payments at maturity are linked solely to the performance of the worst performing underlier between the Dow Jones Industrial Average (INDU) and the S&P 500 Index (SPX).

Terms and Risk Profile of the MSFL Worst-of Jump Securities

According to the filing, Morgan Stanley Finance LLC is offering Worst-of INDU and SPX Enhanced Trigger Jump Securities with a maturity date of December 21, 2027. The securities are linked to whichever of the two underliers, the Dow Jones Industrial Average or the S&P 500 Index, performs worst over the term. The filing notes that this structure exposes investors to greater risk than a single-underlier product, because the return depends on the weaker of the two indexes as of the observation date, December 16, 2027.

The filing illustrates hypothetical outcomes: if the worst performing underlier appreciates 10% or even depreciates 5%, investors would still receive $1,086 per security, reflecting the fixed 8.60% upside payment. However, the upside is capped at that fixed amount regardless of further appreciation. On the downside, if the worst performing underlier falls 30%, the payment at maturity drops to $700 per security; a decline of 50% produces $500 per security; and a decline of 100% produces $0.00 per security, according to the hypothetical payment table provided in the filing.

The filing discloses that the estimated value of $986.10 per security is determined by reference to Morgan Stanley's own pricing and valuation models, and that it "may differ from those of other dealers and is not a maximum or minimum secondary market price." The filing further states that costs associated with "issuing, selling, structuring and hedging the securities" are included in the original issue price and reduce the economic terms. The securities do not guarantee return of any principal, do not pay interest, and secondary trading may be limited, as described in the filing's risk considerations.

What Was Disclosed

Morgan Stanley Finance LLC filed a Free Writing Prospectus summarizing terms, hypothetical payoffs, estimated value, key dates, and risk factors for structured notes linked to the worst-of INDU and SPX, maturing December 21, 2027, with CUSIP 61781TUR2.