Morgan Stanley Finance LLC filed a Free Writing Prospectus on November 3, 2026, summarizing the terms of its Worst-of IWM and IWR Trigger PLUS securities due November 12, 2031, under Registration Statement Nos. 333-293641 and 333-293641-01.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer; Morgan Stanley serves as guarantor, with all payments subject to Morgan Stanley's credit risk.
  • Underliers: The securities are linked to the worst-performing of two ETFs: iShares Russell 2000 ETF (IWM) and iShares Russell Mid-Cap ETF (IWR).
  • Leverage factor: The filing discloses a leverage factor of 130.80% on the upside.
  • Downside threshold: The downside threshold level is set at 75% of the initial level for each underlier.
  • Estimated value: The estimated value is $947.80 per security, or within $40.00 of that estimate, against a stated principal amount of $1,000.
  • Key dates: The pricing date is November 6, 2026, the observation date is November 6, 2031, and the maturity date is November 12, 2031.
  • CUSIP: The securities carry CUSIP 61781TUG6 and will not be listed on any securities exchange.

Terms and Payoff Structure of the Trigger PLUS Securities

According to the filing, the securities are structured notes issued by Morgan Stanley Finance LLC and guaranteed by Morgan Stanley. The payment at maturity is determined solely by the performance of the worst-performing underlier between IWM and IWR, measured from the pricing date to the observation date. The filing states that the securities "do not guarantee the return of any principal and do not pay interest."

The filing provides hypothetical payment scenarios per security. If the worst-performing underlier appreciates 5%, investors would receive $1,065.40, reflecting the 130.80% leverage factor. If it depreciates up to 25%, investors would still receive $1,000.00, indicating principal protection within the threshold. However, once the worst-performing underlier falls below 75% of its initial level, investors are exposed to full downside: a 26% decline produces a payment of $740.00, a 50% decline produces $500.00, and a 100% decline results in $0.00, according to the table included in the filing.

The filing discloses that the estimated value of $947.80 per security is less than the $1,000 original issue price, noting that "costs associated with issuing, selling, structuring and hedging the securities in the original issue price reduce the economic terms of the securities." The filing further states that the estimated value is determined by Morgan Stanley's own pricing and valuation models and "is not a maximum or minimum secondary market price." Secondary market trading may be limited, as the securities will not be listed on any exchange.

What Was Disclosed

Morgan Stanley Finance LLC filed a Free Writing Prospectus to Preliminary Pricing Supplement No. 19,895 on November 3, 2026, disclosing the terms, hypothetical payoffs, estimated value, and risk considerations for its Worst-of IWM and IWR Trigger PLUS notes maturing November 12, 2031.