Morgan Stanley Finance LLC filed a Free Writing Prospectus to Preliminary Pricing Supplement No. 19,881 on November 2, 2026, disclosing terms for NDX Jump Securities with an Auto-Callable Feature due December 5, 2029.

Key Highlights

  • Issuer and Guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley as guarantor, and the underlier is the Nasdaq-100 Index (NDX).
  • Estimated Value: The estimated value is $971.00 per security, or within $45.00 of that estimate, against an implied original issue price of $1,000.00 per security.
  • Auto-Call Feature: If the underlier closes at or above 100% of the initial level on December 1, 2027 (the first determination date), securities are automatically redeemed at $1,131 per security.
  • Participation Rate: A 125% participation rate applies to upside performance if the securities are not redeemed early and the underlier finishes above its initial level at maturity.
  • Downside Threshold: A downside threshold level of 70% of the initial level applies; holders receive $1,000 per security if the underlier declines up to 30%, but losses are amplified below that threshold.
  • Maturity Date: The maturity date is December 5, 2029, with a pricing date of November 30, 2026, and CUSIP 61781TTL7.
  • No Principal Guarantee: According to the filing, "the securities do not guarantee the return of any principal and do not pay interest."

Terms and Structure of Morgan Stanley Finance LLC's NDX Jump Securities

According to the filing, Morgan Stanley Finance LLC is offering NDX Jump Securities linked to the performance of the Nasdaq-100 Index. The securities carry an auto-callable feature: if the closing level of the underlier is greater than or equal to the call threshold level of 100% of the initial level on the first determination date of December 1, 2027, the securities will be automatically redeemed for $1,131 per security, and no further payments will be made. The pricing date is November 30, 2026, and the final determination date is November 30, 2029.

If the securities are not redeemed early and the underlier finishes at or above its initial level at maturity, holders participate in gains at a 125% participation rate, with hypothetical payments ranging from $1,625.00 per security at a 50% gain to $2,250.00 at a 100% gain, per the filing's illustrative table. If the underlier is flat or declines by up to 30%, holders receive $1,000.00 per security. However, if the underlier falls below the 70% downside threshold level, losses are passed through directly: the filing shows a payment of $690.00 at a minus-31% change, $500.00 at minus-50%, and $0.00 at minus-100%.

The filing discloses that the estimated value of $971.00 per security is less than the original issue price, noting that "the inclusion of costs associated with issuing, selling, structuring and hedging the securities in the original issue price reduce the economic terms of the securities." The securities will not be listed on any securities exchange, and secondary trading may be limited. All payments are stated to be subject to the credit risk of Morgan Stanley Finance LLC and its guarantor, Morgan Stanley. The filing was made under Registration Statement Nos. 333-293641 and 333-293641-01.

What Was Disclosed

Morgan Stanley Finance LLC filed a Free Writing Prospectus disclosing the preliminary terms of auto-callable structured notes linked to the Nasdaq-100 Index, including a $971.00 estimated value per security, a $1,131 early redemption payment, a 125% participation rate, and a 70% downside threshold, with maturity set for December 5, 2029.