Morgan Stanley Finance LLC filed a Free Writing Prospectus on November 5, 2026, for Preliminary Pricing Supplement No. 19,926, covering Worst-of INDU and SPX Enhanced Buffered Jump Securities due November 20, 2031.

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 S&P 500 Index (SPX).
  • Upside payment: Fixed at $390 per security (39% of stated principal amount), regardless of underlier appreciation.
  • Buffer amount: 25%, with a maximum potential loss of 75% of principal, according to the filing.
  • Estimated value: $946.10 per security, or within $55.00 of that estimate, as disclosed.
  • Pricing date: November 17, 2026; maturity date November 20, 2031; CUSIP 61781TVP5.
  • No exchange listing: The filing states the securities will not be listed on any securities exchange.

Terms and Payout Structure of the MSFL Buffered Jump Securities

According to the filing, Morgan Stanley Finance LLC is offering Worst-of INDU and SPX Enhanced Buffered Jump Securities with a stated principal amount of $1,000 per security. The observation date is November 17, 2031, and the maturity date is November 20, 2031. The securities are registered under Registration Statement Nos. 333-293641 and 333-293641-01, and were filed pursuant to Rule 433.

The filing discloses that payment at maturity depends solely on the performance of the worst-performing underlier between INDU and SPX. Under the upside scenario described in the filing, if the worst-performing underlier appreciates 10% or even depreciates by as much as 25%, investors receive $1,390 per security, reflecting the fixed 39% upside payment. However, if the worst-performing underlier declines by 26%, the payment drops to $990 per security, and a 50% decline results in $750 per security. The filing illustrates that a hypothetical 95% depreciation in the worst-performing underlier would result in a loss of 70% of principal, with only $300 per security returned at maturity.

The filing notes that the estimated value of $946.10 per security is below the original issue price, and attributes this to "costs associated with issuing, selling, structuring and hedging the securities" being included in the original issue price. The filing further states that the estimated value "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." All payments are described as subject to Morgan Stanley's credit risk.

What Was Disclosed

Morgan Stanley Finance LLC filed a Free Writing Prospectus for structured securities linked to the worst-performing of INDU and SPX, maturing November 20, 2031, with a fixed 39% upside, a 25% buffer, an estimated value of $946.10 per security, and CUSIP 61781TVP5.