Morgan Stanley Finance LLC filed a Free Writing Prospectus on November 2, 2026, summarizing terms for Contingent Income Memory Buffered Auto-Callable Securities due November 28, 2031, linked to the S&P U.S. Equity Momentum 40% VT 4% Decrement Index (SPUMP40), with a pricing date of November 24, 2026.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer; Morgan Stanley is the guarantor of the securities.
  • Contingent coupon range: The filing discloses a contingent coupon of 11.50% to 12.50% per annum, with a memory feature, paid monthly subject to the underlier closing at or above 70% of the initial level on the relevant observation date.
  • Buffer amount: A 15% buffer is provided, meaning the maximum stated loss at maturity is 85% of the original investment, per the filing.
  • Estimated value: The estimated value is $900.00 per security, or within $50.00 of that estimate, against an original issue price of $1,000.00 per security.
  • Auto-call feature: Beginning after one year, the securities may be automatically redeemed monthly if the underlier's closing level is greater than or equal to 100% of the initial level on any redemption determination date.
  • Maturity and CUSIP: The securities mature November 28, 2031, with CUSIP 61781TRH8, and will not be listed on any securities exchange.
  • Underlier history: According to the filing, the SPUMP40 Index was established on March 14, 2022, and therefore "has very limited operating history."

Terms and Structure of the SPUMP40-Linked Securities

According to the filing, the securities are issued by Morgan Stanley Finance LLC under Registration Statement Nos. 333-293641 and 333-293641-01, with Morgan Stanley acting as guarantor. The underlier is the S&P U.S. Equity Momentum 40% VT 4% Decrement Index (SPUMP40). The filing notes that a 4% per annum decrement "will adversely affect the performance of the Index in all cases, whether the Index appreciates or depreciates," and that the Index is subject to risks associated with significant leverage.

The filing's hypothetical payment table illustrates that a principal of $1,000.00 per security is returned in full if the underlier declines by up to 15% at maturity. Beyond that buffer, losses are linear: a 50% decline in the underlier produces a $650.00 payment, and a 100% decline produces a $150.00 payment, excluding any contingent coupon payable at maturity. The filing states that all payments are subject to Morgan Stanley's credit risk. As a finance subsidiary, "MSFL has no independent operations and will have no independent assets," the filing discloses.

The filing also discloses that the estimated value of $900.00 per security is below the $1,000.00 original issue price, partly because costs associated with "issuing, selling, structuring and hedging the securities" are included in the original issue price. The securities will not be listed on any securities exchange, and the filing notes that secondary trading may be limited. U.S. federal income tax consequences are described as uncertain, and investors are directed to review the accompanying preliminary pricing supplement and consult a tax adviser.

What Was Disclosed

Morgan Stanley Finance LLC filed a Free Writing Prospectus dated November 2, 2026, disclosing preliminary terms for auto-callable structured securities linked to the SPUMP40 Index, including coupon rates, buffer levels, estimated value, call mechanics, and associated risk factors.