Morgan Stanley Finance LLC filed a Free Writing Prospectus on November 10, 2026, disclosing preliminary terms for Market Linked Securities linked to the common stock of KLA Corporation, with a maturity date of December 2, 2027, fully and unconditionally guaranteed by Morgan Stanley.

Key Highlights

  • Face amount: $1,000 per security, with denominations of $1,000 and any integral multiple of $1,000.
  • Contingent fixed return: At least 16% of the face amount (at least $160 per security), to be determined on the pricing date of November 20, 2026.
  • Threshold price: 50% of the starting price; if the ending price falls below this level, investors may lose more than 50%, and possibly all, of the face amount.
  • Estimated value on pricing date: Approximately $957.10 per security, or within $35.00 of that estimate, according to the filing.
  • Agent commissions: Wells Fargo Securities, LLC will receive a commission of up to $23.25 per security sold; dealers may receive a selling concession of up to $17.50 per security.
  • CUSIP: 61781TYZ0, with a scheduled calculation day of November 29, 2027 and original issue date of November 25, 2026.

Terms and Risk Profile of the KLA Corporation-Linked Securities

According to the filing, Morgan Stanley Finance LLC ("MSFL") is offering Market Linked Securities described as "Contingent Fixed Return and Contingent Downside Principal at Risk Securities" linked to the common stock of KLA Corporation. The securities are fully and unconditionally guaranteed by Morgan Stanley. The starting price will be set as the closing price of KLA Corporation common stock on the pricing date, currently expected to be November 20, 2026, and the ending price will be measured on the calculation day of November 29, 2027.

The filing states that if the ending price is greater than or equal to the threshold price, holders will receive $1,000 plus the contingent fixed return of at least $160 per security. If the ending price is less than 50% of the starting price, the maturity payment will equal $1,000 plus ($1,000 multiplied by the underlying return), which the filing notes could result in a loss of more than 50%, and possibly all, of the face amount. The securities do not pay interest, and the filing discloses that "the estimated value of the securities on the pricing date will be less than $1,000 per security," reflecting costs associated with issuing, selling, structuring, and hedging.

The filing identifies Morgan Stanley & Co. LLC as the calculation agent, noting it is "a subsidiary of Morgan Stanley and an affiliate of MSFL." The document lists multiple risk factors, including that the securities will not be listed on any securities exchange, that secondary trading may be limited, and that all payments are subject to Morgan Stanley's credit risk. The filing also states that MSFL "has no independent operations and will have no independent assets." Registration Statement Nos. 333-293641 and 333-293641-01 were cited in connection with this offering.

What Was Disclosed

Morgan Stanley Finance LLC filed preliminary terms for principal-at-risk securities linked to KLA Corporation common stock, maturing December 2, 2027, with a contingent fixed return of at least 16%, a 50% threshold price, and an estimated pricing-date value of approximately $957.10 per security.