Morgan Stanley Finance LLC filed a Free Writing Prospectus to Preliminary Pricing Supplement No. 20,018 on November 10, 2026, covering Worst-of RTY and SPX Enhanced Trigger Jump Securities due December 30, 2027.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley as guarantor.
  • Underliers: The securities are linked to the Russell 2000 Index (RTY) and the S&P 500 Index (SPX), with payment based on the worst performing of the two.
  • Upside payment: $122.50 per security (12.25% of the stated principal amount) if the worst performing underlier stays at or above the downside threshold level.
  • Downside threshold level: 85% of the initial level for each underlier; below this, investors are exposed to full proportional losses.
  • Estimated value: $969.80 per security, or within $35.00 of that estimate, according to the filing.
  • Key dates: Pricing date is November 24, 2026; observation date is December 27, 2027; maturity date is December 30, 2027.
  • CUSIP: 61781TZE6; the securities will not be listed on any securities exchange, the filing states.

Terms and Payout Structure of the MSFL Jump Securities

According to the filing, Morgan Stanley Finance LLC is offering Worst-of RTY and SPX Enhanced Trigger Jump Securities with a stated principal amount of $1,000 per security. The securities were filed under Registration Statement Nos. 333-293641 and 333-293641-01. The upside scenario provides a fixed return of $1,122.50 per security (12.25%) if the worst performing underlier does not fall below 85% of its initial level, regardless of how far the better-performing index rises. The filing illustrates this with examples: a 10% appreciation or even a 5% depreciation in the worst performing underlier both result in the same $1,122.50 payment per security.

In the downside scenario, if the worst performing underlier falls below the 85% threshold, investors participate in losses on a one-for-one basis. The filing states that an 85% decline in the worst performing underlier would leave investors with only $150 per security, representing a loss of 85% of principal. A complete decline to -100% would result in a payment of $0.00 per security. The filing also discloses that the estimated value of $969.80 per security is below the original issue price, noting that "both the lower rate and 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 filing states that the securities do not guarantee return of any principal and do not pay interest. All payments are described as subject to the credit risk of Morgan Stanley. The filing further notes that as a finance subsidiary, MSFL "has no independent operations and will have no independent assets." The calculation agent is identified as a subsidiary of Morgan Stanley and an affiliate of MSFL.

What Was Disclosed

Morgan Stanley Finance LLC disclosed the preliminary terms of structured jump securities linked to the worst performer of the RTY and SPX indexes, maturing December 30, 2027, with a fixed upside of 12.25%, a downside threshold of 85%, an estimated value of $969.80 per security, and CUSIP 61781TZE6.