Morgan Stanley Finance LLC filed Pricing Supplement No. 17,385 on August 4, 2026, pursuant to Rule 424(b)(2), disclosing the final terms of Buffered Performance Leveraged Upside Securities due August 5, 2031, linked to the Dow Jones Industrial Average and fully and unconditionally guaranteed by Morgan Stanley (NYSE: MS).

Key Highlights

  • Aggregate principal amount: $783,000, at $1,000 per security, with proceeds to the issuer of $763,425 after agent commissions of $19,575.
  • Estimated value on pricing date: $948.40 per security, below the $1,000 issue price, reflecting costs of issuing, selling, structuring, and hedging.
  • Leverage and cap: A 125% leverage factor applies to upside performance, subject to a maximum payment at maturity of $1,540 per security (154% of stated principal).
  • Buffer protection: A 20% buffer level is set at 41,988.024, representing 80% of the initial level of 52,485.03; losses apply only beyond that buffer.
  • Minimum payment at maturity: 20% of the stated principal amount per security, according to the filing.
  • Maturity and observation: The observation date is July 31, 2031, with a maturity date of August 5, 2031; securities will not be listed on any securities exchange.
  • Agent commissions: Selected dealers and their financial advisors receive a fixed sales commission of $25 per security sold through agent MS & Co.

Final Terms of MSFL's DJIA-Linked Buffered PLUS Securities

Morgan Stanley Finance LLC, an affiliate of Morgan Stanley, issued these securities as part of its Series A Global Medium-Term Notes program. According to the filing, the securities are unsecured obligations of MSFL, fully and unconditionally guaranteed by Morgan Stanley, and carry no interest payments over their approximately five-year term. The strike date and pricing date are both July 31, 2026, with an original issue date of August 5, 2026.

The filing describes a three-scenario payment structure at maturity. If the final closing level of the Dow Jones Industrial Average on July 31, 2031, exceeds the initial level of 52,485.03, investors receive the stated principal amount plus a leveraged upside payment at 125% of the index's percentage gain, capped at $1,540 per security. If the final level falls at or below the initial level but remains at or above the buffer level of 41,988.024, investors receive only the stated principal amount. If the final level falls below the buffer level, the filing states that "investors will lose 1% for every 1% decline in the level of the underlier beyond the specified buffer amount," with payment potentially as low as 20% of the stated principal amount.

The filing notes that the estimated value of $948.40 per security on the pricing date is below the $1,000 issue price because it reflects costs borne by the investor. The filing also states that the internal funding rate used to determine economic terms "is likely to be lower than our secondary market credit spreads and therefore advantageous to us." MS & Co. may, but is not obligated to, make a secondary market in the securities. All payments are subject to the credit risk of the issuer and guarantor.

What Was Disclosed

The filing sets out the complete final terms of $783,000 in aggregate principal of DJIA-linked structured notes issued by Morgan Stanley Finance LLC, including payment mechanics, key levels, commissions, estimated value, and risk disclosures for securities maturing August 5, 2031.