Morgan Stanley Finance LLC filed a Free Writing Prospectus to Preliminary Pricing Supplement No. 19,727, dated November 2, 2026, for Worst-of SX5E, RTY and SPX Jump Securities with an Auto-Callable Feature due December 5, 2030.

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 the worst performing of three indexes: the EURO STOXX 50 Index (SX5E), the Russell 2000 Index (RTY), and the S&P 500 Index (SPX).
  • Auto-call feature: If each underlier's closing level on December 7, 2027 is at or above 100% of its initial level, securities are automatically redeemed for an early redemption payment of $1,300 to $1,310 per security.
  • Participation rate: 150%, applied to the performance of the worst performing underlier at maturity if not earlier redeemed.
  • Downside threshold: Set at 70% of the initial level for each underlier; losses below that threshold are passed through on a 1-for-1 basis to the investor.
  • Estimated value: $970.40 per security, or within $45.00 of that estimate, against an implied original issue price of $1,000.00 per security.
  • CUSIP: 61781TA29; pricing date is November 30, 2026, with a maturity date of December 5, 2030.

Morgan Stanley Finance LLC Worst-of Jump Securities: Key Terms and Risk Profile

According to the filing, Morgan Stanley Finance LLC (MSFL) is offering Worst-of SX5E, RTY and SPX Jump Securities with an Auto-Callable Feature due December 5, 2030, under Registration Statement Nos. 333-293641 and 333-293641-01. The securities are guaranteed by Morgan Stanley and carry a CUSIP of 61781TA29. The filing discloses that the estimated value of $970.40 per security is below the original issue price, reflecting "costs associated with issuing, selling, structuring and hedging the securities."

The auto-call mechanism operates on a single determination date of December 7, 2027. The filing states that if the closing level of each underlier is greater than or equal to its call threshold level of 100% of the initial level on that date, holders receive $1,300 to $1,310 per security and no further payments are made. If not redeemed early, the payment at maturity depends on the worst performing underlier, with the 150% participation rate applying to positive performance. The downside threshold is 70% of the initial level: at a -30% change the filing shows a hypothetical payout of $1,000.00 per security, while at -31% the hypothetical payout falls to $690.00, and at -100% it falls to $0.00.

The filing identifies several risk factors, including that "the securities do not guarantee the return of any principal and do not pay interest," that the securities will not be listed on any securities exchange, and that secondary trading may be limited. The filing also notes that "as a finance subsidiary, MSFL has no independent operations and will have no independent assets," and that U.S. federal income tax consequences of an investment in the securities are uncertain. The calculation agent is described as a subsidiary of Morgan Stanley and an affiliate of MSFL.

What Was Disclosed

Morgan Stanley Finance LLC filed a Free Writing Prospectus covering structured notes linked to the worst of three equity indexes, with a single auto-call date in 2027, a maturity in December 2030, an estimated value of $970.40 per security, and a 150% participation rate on the upside.