Morgan Stanley Finance LLC filed a free writing prospectus on November 12, 2026, summarizing the preliminary terms of 6-Year Market-Linked Notes based on a basket of five international equity indices, with pricing scheduled for November 30, 2026.

Key Highlights

  • Issue price: $1,000 per note, with a stated maturity date of December 3, 2032, according to the filing.
  • Basket composition: The underlying basket comprises the EURO STOXX 50 Index (40.00%), Tokyo Stock Price Index (25.00%), FTSE 100 Index (17.50%), Swiss Market Index (10.00%), and S&P/ASX 200 Index (7.50%).
  • Principal protection: The filing states that "in no event will the payment due at maturity be less than the stated principal amount, regardless of the performance of the underlying indices."
  • Participation rate: The filing discloses a participation rate of 152%, used in the supplemental redemption amount calculation alongside the basket percent change.
  • Estimated value: The filing states the estimated value of the notes is approximately $932.30 per note, or within $55.00 of that estimate.
  • No interest payments: The notes carry no interest, and the CUSIP is 61781T2F9.

Terms and Structure of the Morgan Stanley Finance LLC Market-Linked Notes

According to the filing, the notes are issued by Morgan Stanley Finance LLC, with Morgan Stanley as guarantor. The original issue date is December 3, 2026, three business days after the pricing date of November 30, 2026. The determination date, on which the final basket closing value is measured, is November 30, 2032, subject to postponement for non-index business days and certain market disruption events.

The filing describes the payment at maturity as $1,000 plus a supplemental redemption amount, if any. That supplemental redemption amount is calculated as $1,000 multiplied by the basket percent change and then multiplied by the participation rate of 152%, provided the supplemental redemption amount will not be less than $0. The basket percent change is defined as the final basket closing value minus the initial basket value, divided by the initial basket value, with the initial basket value set equal to 100 as determined on the pricing date.

The filing's hypothetical payout table illustrates that a 10% positive change in basket value would correspond to a 15.20% return on the notes, while a 90% positive change would yield a 136.80% return. Any flat or negative basket performance results in a 0% supplemental redemption amount, meaning investors would receive back only the $1,000 stated principal amount. The filing cautions that the estimated value of approximately $932.30 per note is less than the original issue price, attributing the difference to costs associated with "issuing, selling, structuring and hedging the notes." All payments are described as subject to Morgan Stanley's credit risk.

What Was Disclosed

Morgan Stanley Finance LLC disclosed preliminary terms for 6-Year Market-Linked Notes tied to a five-index international equity basket, with principal protection at maturity, a 152% participation rate on positive basket performance, and an estimated per-note value of approximately $932.30.