Morgan Stanley Finance LLC filed a Free Writing Prospectus on November 2, 2026, for Preliminary Pricing Supplement No. 19,707, describing Worst-of NDXT, RTY, and SPX Jump Securities with an Auto-Callable Feature due November 28, 2031.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer; Morgan Stanley is the guarantor, with all payments subject to Morgan Stanley's credit risk.
  • Underliers: The securities are linked to three indexes: the Nasdaq-100 Technology Sector Index (NDXT), the Russell 2000 Index (RTY), and the S&P 500 Index (SPX), with returns based on the worst performer.
  • Auto-call feature: If each underlier closes at or above 100% of its initial level on the first determination date of December 3, 2027, the securities are automatically redeemed at $1,185 to $1,195 per security.
  • Participation rate and threshold: The participation rate is 150%, and the downside threshold level is 70% of the initial level for each underlier.
  • Estimated value: The estimated value is $943.00 per security, or within $55.00 of that estimate, against an implied original issue price of $1,000.00 per security.
  • Key dates: The pricing date is November 24, 2026; the final determination date is November 24, 2031; and the maturity date is November 28, 2031.
  • No principal protection or interest: According to the filing, "the securities do not guarantee the return of any principal and do not pay interest."

Structure and Payment Terms of the MSFL Worst-of Jump Securities

According to the filing, Morgan Stanley Finance LLC is offering structured securities linked to the worst-performing of three equity indexes. The securities carry a CUSIP of 61781TMR1 and were filed under Registration Statement Nos. 333-293641 and 333-293641-01. The filing notes that as a finance subsidiary, MSFL "has no independent operations and will have no independent assets," with Morgan Stanley serving as guarantor.

The auto-callable feature operates on a single determination date of December 3, 2027. If each underlier's closing level is greater than or equal to 100% of its initial level on that date, the securities are automatically redeemed and investors receive the early redemption payment of $1,185 to $1,195 per security, with no further payments made thereafter. If not redeemed early, the final outcome depends entirely on the worst-performing underlier at maturity. The filing provides hypothetical payment examples: a 0% or -30% change in the worst underlier both yield $1,000.00 per security, while a -31% change yields $690.00, a -50% change yields $500.00, and a -100% change yields $0.00. An upside scenario of +50% produces $1,750.00, and +100% produces $2,500.00, reflecting the 150% participation rate.

The filing discloses that the estimated value of $943.00 per security is below the original issue price, noting that "the inclusion of costs associated with issuing, selling, structuring and hedging the securities in the original issue price reduce the economic terms of the securities." The filing further states that the securities will not be listed on any securities exchange and that secondary trading may be limited. U.S. federal income tax consequences are described as uncertain, and investors are directed to consult their tax advisers.

What Was Disclosed

Morgan Stanley Finance LLC filed a Free Writing Prospectus for structured notes linked to the worst of three equity indexes, with an auto-call feature on December 3, 2027, a maturity of November 28, 2031, an estimated value of $943.00 per security, and CUSIP 61781TMR1.