Morgan Stanley Finance LLC filed a Free Writing Prospectus (FWP) on November 2, 2026, for Preliminary Pricing Supplement No. 19,781, describing Worst-of INDU, NDX and RTY Enhanced Trigger Jump Securities due November 29, 2030, with a CUSIP of 61781TPU1.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley as guarantor, according to the filing.
  • Underliers: The securities are linked to three indexes: the Dow Jones Industrial Average (INDU), the Nasdaq-100 Index (NDX), and the Russell 2000 Index (RTY).
  • Upside payment range: The filing states the upside payment is $392.50 to $412.50 per security (39.25% to 41.25% of the stated principal amount).
  • Downside threshold: The downside threshold level is 70% of the initial level for each underlier, as disclosed in the filing.
  • Estimated value: The estimated value is $933.90 per security, or within $45.00 of that estimate, according to the filing.
  • Key dates: The pricing date is November 24, 2026, the observation date is November 25, 2030, and the maturity date is November 29, 2030.
  • No principal guarantee: The filing states that "the securities do not guarantee the return of any principal and do not pay interest."

Structure and Payment Terms for MSFL's Worst-of Jump Securities

According to the filing, the securities are structured so that the payment at maturity is "based solely on the performance of the worst performing underlier, which could be any underlier." In an upside scenario, if the worst performing underlier appreciates 10% or even depreciates up to a point that does not breach the 70% threshold, investors would receive $1,392.50 per security, reflecting the stated upside payment of $392.50 per security (assuming the lower end of the range). The filing illustrates that a worst-performing underlier change of 0.00% or even negative 30.00% would still yield $1,392.50 per security.

In a downside scenario, the filing discloses that if the worst performing underlier depreciates 85%, investors would "lose 85% of their principal and receive only $150 per security at maturity, or 15% of the stated principal amount." A hypothetical 100% decline in the worst performing underlier would result in a payment of $0.00 per security. The filing notes that "the appreciation potential of the securities is fixed and limited," and that the securities will not be listed on any securities exchange, meaning secondary trading may be limited.

The filing discloses that the estimated value of $933.90 per security is less than the original issue price, attributed in part to "costs associated with issuing, selling, structuring and hedging the securities in the original issue price." Morgan Stanley's calculation agent, described as "a subsidiary of Morgan Stanley and an affiliate of MSFL," will make determinations with respect to the securities. The filing further notes that U.S. federal income tax consequences of an investment in these securities "are uncertain," and directs investors to consult their tax advisers.

What Was Disclosed

Morgan Stanley Finance LLC filed a Free Writing Prospectus for structured securities linked to the worst-performing of three equity indexes, with a maturity date of November 29, 2030, an estimated value of $933.90 per security, and a downside threshold of 70% of each underlier's initial level.