Morgan Stanley Finance LLC filed a preliminary pricing supplement (No. 17,838) on July 31, 2026, under Rule 424(b)(2), covering Fixed Rate Callable Notes due August 17, 2032, fully and unconditionally guaranteed by Morgan Stanley (NYSE: MS).

Key Highlights

  • Issue price: $1,000 per note, with a stated principal amount of $1,000 per note.
  • Interest Rate : 5.000% per annum, paid semi-annually on the 17th of each February and August, beginning February 17, 2027.
  • Maturity date: August 17, 2032, with the original Issue Date set for August 17, 2026.
  • Estimated value: Approximately $977.60 per note on the pricing date, or within $47.60 of that estimate, according to the filing.
  • Call feature: Early Redemption possible on August 17, 2027 or February 17, 2028, determined by a risk neutral valuation model.
  • CUSIP / ISIN: 61766YQ46 / US61766YQ461; ticker reference MS-PQ applies to this series.
  • No exchange listing: The notes will not be listed on any securities exchange and are not insured by the FDIC or any other governmental agency.

Structure and Terms of the Morgan Stanley Finance LLC Callable Notes

According to the filing, Morgan Stanley Finance LLC ("MSFL") is the issuer of these Fixed Rate Callable Notes, which are Debt securities fully and unconditionally guaranteed by its parent, Morgan Stanley, a global financial services firm. The notes carry a fixed interest rate of 5.000% per annum, calculated on a 30/360 (Bond Basis) day-count convention, with semi-annual payments due on the 17th of each February and August. The filing states that all payments on the notes are subject to the Credit risk of MSFL, and that investors could lose some or all of their Investment if MSFL defaults on its obligations.

The filing discloses that the issue price of $1,000 per note includes costs associated with issuing, selling, structuring, and hedging the notes, which are described as being "borne by you." As a result, the estimated value of each note on the pricing date is approximately $977.60, or within $47.60 of that estimate, which is lower than the $1,000 issue price. The filing explains that this gap arises because the internal funding rate used to determine economic terms is likely lower than MSFL's Secondary Market credit spreads, a difference the filing characterizes as advantageous to the issuer rather than to the investor.

The call feature specifies that early redemption may occur in whole but not in part on either August 17, 2027 or February 17, 2028. The redemption decision is driven solely by the output of a risk neutral valuation model, which evaluates prevailing reference market levels, volatilities, correlations, and Morgan Stanley's credit spreads as of the pricing date. If the model indicates redemption is economically rational for the issuer, early redemption will proceed at 100% of principal plus accrued and unpaid interest. The filing states that at least five Business days' notice will be provided before any call date. The calculation agent is identified as Morgan Stanley Bank, N.A., and the Trustee is The Bank of New York Mellon.

What Was Disclosed

The preliminary pricing supplement covers a fixed rate, semi-annually paying, callable debt offering by Morgan Stanley Finance LLC, guaranteed by Morgan Stanley, with a 5.000% annual interest rate, a 2032 maturity, two possible call dates in 2027 and 2028, and an estimated pricing-date value below the $1,000 issue price.