Morgan Stanley Finance LLC filed a preliminary pricing supplement (No. 17,902) on August 4, 2026, under Rule 424(b)(2), offering six-year structured notes linked to the EURO STOXX 50 Index and maturing August 12, 2032.

Key Highlights

  • Issue price: $1,000 per Trigger PLUS, with an estimated value on the pricing date of approximately $948.80, or within $40.00 of that estimate.
  • Leverage factor: 190.50% applied to any positive index performance at maturity.
  • Trigger level: 65% of the initial index value; investors receive full principal only if the final index value is at or above this level.
  • Principal at risk: If the final index value falls below the trigger level, the payment at maturity reflects a 1% loss for every 1% decline, and could be zero.
  • No interest or coupon: The notes pay no interest and provide no guaranteed return of principal.
  • Agent commissions: $30 per Trigger PLUS in fixed sales commissions plus a $5 structuring fee, leaving proceeds to the issuer of $965 per note.
  • Maturity and valuation dates: Valuation date is August 9, 2032; original issue date is August 12, 2026.

Structure, Payoff Terms, and Risk Profile of the MSFL EURO STOXX 50 Trigger PLUS

According to the filing, the Trigger PLUS are unsecured obligations of Morgan Stanley Finance LLC (NYSE: MS), fully and unconditionally guaranteed by Morgan Stanley, and issued as part of MSFL's Series A Global Medium-Term Notes program. The notes carry CUSIP 61781DA32 and ISIN US61781DA328, and will not be listed on any securities exchange. The pricing date is August 7, 2026, with the original issue date set for August 12, 2026.

The filing describes three possible payment outcomes at maturity. If the final index value exceeds the initial index value, investors receive $1,000 plus a leveraged upside payment calculated as $1,000 multiplied by the leverage factor of 190.50% and the index percent increase. If the final index value is at or below the initial index value but at or above the trigger level (65% of the initial index value), investors receive $1,000. If the final index value falls below the trigger level, the payment equals $1,000 multiplied by the index performance factor, which the filing states "will be less than the stated principal amount of $1,000 and will represent a loss of more than 35%, and possibly all, of your investment."

The filing discloses that the $1,000 issue price includes costs associated with issuing, selling, structuring, and hedging, which are described as borne by investors. The estimated value of approximately $948.80 per note is derived using internal pricing models, market inputs, and assumptions including volatility and interest rates. The filing also notes 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." All payments are subject to the credit risk of the issuer and guarantor.

What Was Disclosed

This preliminary pricing supplement describes the terms of six-year, principal-at-risk structured notes linked to the EURO STOXX 50 Index, including the leverage factor, trigger level, estimated value, commissions, and the range of potential payoffs at maturity.