Morgan Stanley Finance LLC filed a free writing prospectus on November 2, 2026, for Contingent Income Memory Buffered Auto-Callable Securities linked to the S&P U.S. Equity Momentum 40% VT 4% Decrement Index, with a pricing date of November 24, 2026, and maturity on November 28, 2031.

Key Highlights

  • Underlying index: 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.
  • Contingent coupon range: The filing discloses a contingent coupon of 13.25% to 14.25% per annum, paid monthly, with a memory feature.
  • Coupon barrier level: Coupons are contingent on the underlier closing at or above 80% of its initial level on the relevant observation date.
  • Buffer amount: A 15% buffer applies at maturity, meaning the maximum potential loss is 85% of principal, according to the filing.
  • Auto-call feature: Beginning after one year, the securities may be automatically redeemed monthly if the underlier closes at or above 100% of its initial level on a redemption determination date.
  • Estimated value: The filing states an estimated value of $899.90 per security, or within $49.90 of that estimate, against an implied original issue price of $1,000.00.
  • CUSIP: 61781TRG0; registration statement nos. 333-293641 and 333-293641-01.

SPUMP40 Security Terms: Structure, Payoff, and Key Risks

According to the filing, the issuer is Morgan Stanley Finance LLC (MSFL), with Morgan Stanley as guarantor. The securities are described as Contingent Income Memory Buffered Auto-Callable Securities due November 28, 2031, filed under Free Writing Prospectus to Preliminary Pricing Supplement No. 19,822. The filing notes that all payments are subject to Morgan Stanley's credit risk, and that MSFL "has no independent operations and will have no independent assets."

The filing sets out a hypothetical payment table at maturity for securities that have not been automatically redeemed. Under that table, a 0.00% change or a decline of up to 15.00% in the underlier results in a payment of $1,000.00 per security. A decline of 16.00% produces a payment of $990.00, a decline of 50.00% produces $650.00, and a decline of 100.00% produces $150.00 per security. The filing states that "investors will not participate in any appreciation in the value of the underlier."

The filing identifies several risk factors specific to the SPUMP40 index, noting that "the decrement of 4% per annum will adversely affect the performance of the Index in all cases, whether the Index appreciates or depreciates," and that the index "is subject to risks associated with the use of significant leverage." The filing further states that the securities will not be listed on any securities exchange and that secondary trading may be limited. The filing also discloses that the estimated value is determined by reference to Morgan Stanley's own pricing and valuation models, which "may differ from those of other dealers."

What Was Disclosed

Morgan Stanley Finance LLC disclosed terms for structured auto-callable securities linked to the SPUMP40 index, including a contingent coupon of 13.25% to 14.25% per annum, a 15% principal buffer, an estimated value of $899.90 per security, and a maturity date of November 28, 2031.