Morgan Stanley Finance LLC filed a Free Writing Prospectus to Preliminary Pricing Supplement No. 19,731 on November 2, 2026, covering Worst-of NDXT and RTY Contingent Income Auto-Callable Securities due March 3, 2028.

Key Highlights

  • Issuer and Guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley as guarantor, according to the filing.
  • Underliers: The securities are linked to the Nasdaq-100 Technology Sector Index (NDXT) and the Russell 2000 Index (RTY), on a worst-of basis.
  • Contingent Coupon Range: The filing discloses a contingent coupon of 10.50% to 11.50% per annum, paid monthly, subject to each underlier closing at or above 75% of its initial level on the related observation date.
  • Call Threshold: The securities will be automatically redeemed early if each underlier closes at or above 100% of its initial level on any monthly redemption determination date beginning after six months.
  • Downside Threshold: A downside threshold level of 75% of the initial level applies; losses below that level are proportional to the worst-performing underlier, down to a total loss at -100%.
  • Estimated Value: The filing states an estimated value of $966.80 per security, or within $35.00 of that estimate, against a $1,000 face amount.
  • Pricing and Maturity Dates: The pricing date is November 30, 2026, with a final observation date of February 29, 2028, and a maturity date of March 3, 2028; the CUSIP is 61781TA86.

Structure and Terms of the MSFL Worst-of Auto-Callable Securities No. 19,731

According to the filing, Morgan Stanley Finance LLC is offering Worst-of NDXT and RTY Contingent Income Auto-Callable Securities due March 3, 2028 under Registration Statement Nos. 333-293641 and 333-293641-01. The securities are linked to two underliers: the Nasdaq-100 Technology Sector Index (NDXT) and the Russell 2000 Index (RTY). Because returns depend on the worst-performing of the two underliers, the filing notes that investors "are exposed to a greater risk of not receiving a positive return on the securities and/or sustaining a significant loss" compared with a single-underlier structure.

The filing discloses a contingent coupon of 10.50% to 11.50% per annum, paid monthly, but only if each underlier closes at or above its coupon barrier level of 75% of its initial level on the applicable observation date. Automatic early redemption occurs if each underlier closes at or above 100% of its initial level on any monthly redemption determination date, beginning after six months from issuance. The filing states that "no further payments will be made on the securities once they have been automatically redeemed." If the securities are not redeemed early and the worst-performing underlier falls below the 75% downside threshold at maturity, principal loss is proportional, as illustrated in the hypothetical table: a -50% decline in the worst performer results in a $500.00 payment per security, and a -100% decline results in $0.00.

The filing reports an estimated value of $966.80 per security, or within $35.00 of that estimate, and discloses that this figure is below the $1,000 original issue price because of "costs associated with issuing, selling, structuring and hedging the securities." The securities will not be listed on any securities exchange, and the filing cautions that secondary trading may be limited. All payments are described as subject to the credit risk of Morgan Stanley Finance LLC and its guarantor, Morgan Stanley.

What Was Disclosed

The Free Writing Prospectus to Preliminary Pricing Supplement No. 19,731, filed November 2, 2026, discloses the terms, estimated value, risk factors, and hypothetical payment scenarios for MSFL's Worst-of NDXT and RTY Contingent Income Auto-Callable Securities maturing March 3, 2028, with CUSIP 61781TA86.