Morgan Stanley Finance LLC filed a Free Writing Prospectus on November 2, 2026, for Preliminary Pricing Supplement No. 19,852, describing Worst-of RTY and SPX Jump Securities with an Auto-Callable Feature due November 29, 2029.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer; Morgan Stanley is the guarantor, with all payments subject to Morgan Stanley's credit risk.
  • Underliers: The securities are linked to the Russell 2000 Index (RTY) and the S&P 500 Index (SPX), with returns based on the worst-performing of the two.
  • Auto-call feature: If, on the first determination date of December 1, 2027, each underlier closes at or above 100% of its initial level, the securities are automatically redeemed at $1,117.50 to $1,127.50 per security.
  • Maturity date: November 29, 2029, with a final determination date of November 26, 2029 and a pricing date of November 24, 2026.
  • Downside threshold: Set at 70% of the initial level for each underlier; losses below that threshold are passed through at a 1-to-1 rate, with a payment as low as $0.00 per security.
  • Estimated value: $952.00 per security, or within $45.00 of that estimate, which is less than the original issue price of $1,000.00 per security.
  • Participation rate: 150%, applied to any gain in the worst-performing underlier at maturity if the securities have not been redeemed early.

Structure and Payment Terms of the MSFL Worst-of Jump Securities

According to the filing, the securities are issued by Morgan Stanley Finance LLC (MSFL) under Registration Statement Nos. 333-293641 and 333-293641-01, with Morgan Stanley acting as guarantor. The CUSIP is 61781TRZ8. The filing notes that MSFL "has no independent operations and will have no independent assets," meaning holders rely entirely on Morgan Stanley's credit for any payments.

The filing discloses a hypothetical payment-at-maturity table showing that if the worst-performing underlier gains 50%, the payment would be $1,750.00 per security; if it is flat (0.00%), the payment would be $1,000.00 per security; and if it falls 30%, the payment would still be $1,000.00 per security, as that decline remains above the 70% downside threshold. However, the filing shows that a 31% decline would produce a $690.00 payment and a 50% decline would produce a $500.00 payment, with a total loss possible if the worst-performing underlier falls 100%. The 150% participation rate applies only to upside scenarios at maturity.

The filing states that the securities will not be listed on any securities exchange and that secondary trading may be limited. It also discloses that the estimated value of $952.00 per security is determined by Morgan Stanley's own pricing and valuation models, and 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 U.S. federal income tax consequences are described in the filing as "uncertain."

What Was Disclosed

Morgan Stanley Finance LLC filed a Free Writing Prospectus for structured securities linked to the RTY and SPX indexes, with an auto-call option on December 1, 2027, a maturity date of November 29, 2029, an estimated value of $952.00 per security, and principal at full risk below a 70% downside threshold.