Morgan Stanley Finance LLC filed a free writing prospectus on October 30, 2026, disclosing preliminary terms for Worst-of RTY and SPX Callable Jump Notes due December 4, 2031, identified by CUSIP 61781TQG1.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley acting as guarantor; all payments are subject to Morgan Stanley's credit risk.
  • Underliers: The notes are linked to the worst performing of two indexes: the Russell 2000 Index (RTY) and the S&P 500 Index (SPX).
  • Estimated value: The notes carry an estimated value of $952.40 per note, or within $55.00 of that estimate, against an implied original issue price of $1,000.00 per note.
  • Participation rate: A 120% participation rate applies to any positive performance of the worst performing underlier at maturity.
  • First redemption date: The earliest possible early redemption date is December 3, 2027, with a minimum redemption payment of at least $1,130.00 per note.
  • No interest payments: According to the filing, the notes do not pay interest.
  • Pricing and maturity dates: The pricing date is November 30, 2026, the observation date is December 1, 2031, and the maturity date is December 4, 2031.

Structure and Payment Terms of the RTY/SPX Jump Notes, CUSIP 61781TQG1

According to the filing, Morgan Stanley Finance LLC is offering Worst-of RTY and SPX Callable Jump Notes structured so that the return at maturity depends on the closing level change of whichever of the two underliers performs worse. The filing discloses a 120% participation rate applied to that worst-performing underlier's percentage change. Hypothetical payment examples provided in the prospectus show that a 60% gain in the worst performing underlier would produce a $1,720.00 payment per note, while any flat or negative outcome would yield $1,000.00 per note, preserving principal in those scenarios but offering no upside.

The notes carry 48 potential early redemption dates running monthly from December 3, 2027, through November 4, 2031. The filing specifies that early redemption, in whole but not in part, occurs "if and only if the output of a risk neutral valuation model indicates that redeeming on such date is economically rational for us as compared to not redeeming on such date." Each successive redemption date carries a higher minimum payment, stepping from at least $1,130.00 on redemption date one up to at least $1,639.167 on redemption date 48. The filing cautions that early redemption limits the appreciation potential of the notes to the fixed payment specified for that date.

The filing further discloses that the estimated value of $952.40 per note is below the original issue price because costs associated with "issuing, selling, structuring and hedging the notes" are included in the original issue price. MSFL is described as having "no independent operations" and "no independent assets" as a finance subsidiary. The notes will not be listed on any securities exchange, and secondary trading may be limited, according to the risk disclosures. The filing is made under Registration Statement Nos. 333-293641 and 333-293641-01, pursuant to Rule 433.

What Was Disclosed

Morgan Stanley Finance LLC disclosed preliminary terms for structured notes linked to the worst performing of the Russell 2000 Index and the S&P 500 Index, with up to 48 monthly call dates, a 120% participation rate, an estimated value of $952.40 per note, and a maturity date of December 4, 2031.