Morgan Stanley Finance LLC filed Pricing Supplement No. 16,984 on August 4, 2026, disclosing the terms of Contingent Income Memory Auto-Callable Securities due August 3, 2029, linked to the worst performing of three underliers and fully and unconditionally guaranteed by Morgan Stanley (NYSE: MS).

Key Highlights

  • Aggregate principal amount: $262,000, priced at $1,000 per security with an issue date of August 5, 2026.
  • Contingent coupon rate: 9.00% per annum, payable only if each underlier closes at or above its coupon barrier level on the related observation date.
  • Three underliers: iShares Silver Trust (SLV Fund), Nasdaq-100 Technology Sector Index (NDXT Index), and Russell 2000 Index (RTY Index); performance is based on the worst performing of the three.
  • Estimated value on pricing date: $956.10 per security, compared to the $1,000 issue price.
  • Principal at risk: If any underlier's final level is below its downside threshold, investors lose 1% for every 1% decline in the worst performing underlier, with potential loss of the entire investment.
  • First redemption determination date: January 29, 2027; the securities cannot be redeemed early before that date.
  • Agent commissions: $5 per security, with proceeds to the issuer of $995 per security; selected dealers may also receive a structuring fee of up to $6.25 per security.

Terms and Structure of MSFL's Worst-of Auto-Callable Securities

According to the filing, the securities are unsecured obligations of Morgan Stanley Finance LLC, issued as part of MSFL's Series A Global Medium-Term Notes program and fully and unconditionally guaranteed by Morgan Stanley. The stated principal amount is $1,000 per security, and the aggregate principal amount is $262,000. The pricing date and strike date are both July 31, 2026, with an original issue date of August 5, 2026 and a maturity date of August 3, 2029.

The filing discloses that a contingent coupon at an annual rate of 9.00% will be paid - along with any previously unpaid contingent coupons - only if the closing level of each underlier is greater than or equal to its coupon barrier level on the related observation date. The call threshold levels, each set at 100% of the initial level, are $52.36 for the SLV Fund, 16,325.61 for the NDXT Index, and 2,931.339 for the RTY Index. Automatic early redemption occurs if all three underliers are at or above their call threshold levels on any of 30 listed redemption determination dates beginning January 29, 2027.

The filing states that if the securities are not redeemed early and the final level of any underlier is less than its downside threshold level, investors will lose 1% for every 1% decline in the worst performing underlier, and "the payment at maturity will be significantly less than the stated principal amount and could be zero." The estimated value on the pricing date was $956.10 per security. The filing also notes that the securities were sold only to investors purchasing in fee-based advisory accounts, and that all payments are subject to the credit risk of MSFL and Morgan Stanley.

What Was Disclosed

The filing discloses pricing terms for $262,000 in principal at risk auto-callable securities due August 3, 2029, linked to three underliers, offering a 9.00% per annum contingent coupon and carrying the risk of total principal loss depending on underlier performance.