Morgan Stanley Finance LLC filed a Free Writing Prospectus to Preliminary Pricing Supplement No. 19,720 on November 2, 2026, relating to SX5E Dual Directional Buffered PLUS securities due December 4, 2031, linked to the EURO STOXX 50 Index.

Key Highlights

  • Issuer and Guarantor: Morgan Stanley Finance LLC is the issuer; Morgan Stanley is the guarantor.
  • Underlier: The securities are linked to the EURO STOXX 50 Index (SX5E).
  • Leverage Factor: 170% to 185% on the upside; absolute return participation rate of 50% on the downside within the buffer.
  • Buffer Amount: 20%, with a maximum loss of 80% of stated principal.
  • Estimated Value: $952.00 per security, or within $55.00 of that estimate.
  • Key Dates: Pricing date November 30, 2026; observation date December 1, 2031; maturity date December 4, 2031.
  • CUSIP: 61781TML4; securities will not be listed on any securities exchange.

Structure and Payoff Terms for MSFL's SX5E Buffered PLUS No. 19,720

According to the filing, Morgan Stanley Finance LLC is offering structured securities linked to the EURO STOXX 50 Index under Registration Statement Nos. 333-293641 and 333-293641-01. The securities carry a leverage factor of 170% to 185% for upside scenarios and an absolute return participation rate of 50% for downside scenarios where the underlier depreciates but remains within the 20% buffer. The filing discloses that the maximum loss is 80% of stated principal, with all payments subject to the credit risk of Morgan Stanley.

The filing provides hypothetical payment scenarios at maturity. If the underlier appreciates 5%, investors would receive $1,085 per security, or 108.50% of the stated principal amount. If the underlier depreciates 5%, investors would receive $1,025 per security, or 102.50% of the stated principal amount, reflecting the absolute return feature. If the underlier depreciates 95%, investors would receive only $250 per security, or 25% of the stated principal amount, representing a 75% loss of principal. The table in the filing notes that calculations at the top end assume a leverage factor of 170%.

The filing identifies several risks, including that the securities do not pay interest, that any positive return based on underlier depreciation is effectively capped, and that the estimated value of $952.00 per security is less than the original issue price due to costs associated with issuing, selling, structuring, and hedging. The filing further discloses that the securities will not be listed on any securities exchange and that secondary trading may be limited. The U.S. federal income tax consequences of investing in the securities are described in the filing as uncertain.

What Was Disclosed

Morgan Stanley Finance LLC disclosed the preliminary terms of structured notes linked to the EURO STOXX 50 Index, maturing December 4, 2031, with a 20% buffer, a leverage factor of 170% to 185%, an estimated value of $952.00 per security, and CUSIP 61781TML4.