Morgan Stanley Finance LLC filed a free writing prospectus on November 2, 2026, disclosing preliminary terms for its SPUMP40 Buffered Jump Securities with Auto-Callable Feature, registered under NYSE:MS, with a scheduled maturity of November 28, 2031.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley serving as guarantor of all payments, which are subject to Morgan Stanley's credit risk.
  • Underlier: The securities are linked to the S&P U.S. Equity Momentum 40% VT 4% Decrement Index (SPUMP40), which was established on March 14, 2022.
  • Estimated value: The filing states an estimated value of $905.60 per security, or within $55.00 of that estimate, against an implied original issue price of $1,000.
  • Auto-call schedule: Up to 48 monthly determination dates are listed, with the first on November 26, 2027, carrying an early redemption payment range of $1,200.00 to $1,210.00 per security.
  • Buffer and loss exposure: The securities include a 15% buffer amount, meaning investors face a maximum potential loss of 85% of principal at maturity.
  • Pricing and maturity dates: The pricing date is November 24, 2026, the final determination date is November 24, 2031, and the maturity date is November 28, 2031.
  • No exchange listing: According to the filing, "The securities will not be listed on any securities exchange and secondary trading may be limited."

Structure and Terms of the SPUMP40 Buffered Jump Securities

According to the free writing prospectus filed under Registration Statement Nos. 333-293641 and 333-293641-01, Morgan Stanley Finance LLC is offering structured securities linked to the S&P U.S. Equity Momentum 40% VT 4% Decrement Index. The index carries a fixed decrement of 4% per annum, which the filing states "will adversely affect the performance of the Index in all cases, whether the Index appreciates or depreciates." The CUSIP for the securities is 61781TQN6, and the securities are described as not paying interest.

The auto-callable feature provides for up to 48 monthly determination dates beginning November 26, 2027. If the closing level of the underlier equals or exceeds the call threshold level, set at 100% of the initial level, on any determination date, the securities are automatically redeemed at the applicable early redemption payment for that date. The filing illustrates this with a hypothetical example: a positive 30% change in the underlier on the second determination date would trigger redemption at $1,216.667 per security. Early redemption payments rise across the schedule, reaching a range of $1,983.333 to $2,032.50 per security on determination date 48 in October 2031.

At maturity, if the securities have not been redeemed early, the payment depends on the underlier's final performance. The filing's hypothetical table shows that a closing level at or above the initial level produces a payment of $2,000.00 per security (assuming a call return of approximately 20.00% per annum), while a 15% decline also returns $1,000.00. A 50% decline would produce $650.00 per security, and a 100% decline would produce $150.00 per security. The filing notes that the estimated value of $905.60 per security is "determined by reference to our pricing and valuation models, which may differ from those of other dealers and is not a maximum or minimum secondary market price," and that costs of issuing, selling, structuring, and hedging are included in the original issue price.

What Was Disclosed

Morgan Stanley Finance LLC filed a free writing prospectus dated November 2, 2026, detailing the preliminary terms of SPUMP40 Buffered Jump Securities due November 28, 2031, including an estimated value of $905.60 per security, a 15% principal buffer, up to 48 auto-call dates, and an index decrement of 4% per annum.