Morgan Stanley Finance LLC filed a free writing prospectus on November 2, 2026, for Buffered Jump Securities with Auto-Callable Feature linked to the S&P U.S. Equity Momentum 40% VT 4% Decrement Index, maturing December 4, 2031.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley serving as guarantor.
  • Underlier: 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.
  • Estimated value: $936.20 per security, or within $55.00 of that estimate, according to the filing.
  • Buffer amount: 15%, with a maximum loss of 85% of principal if held to maturity.
  • Call threshold level: 90% of the initial level, with 48 potential early redemption determination dates beginning December 1, 2027.
  • Pricing date: November 30, 2026; maturity date: December 4, 2031; CUSIP: 61781TQK2.
  • Call return assumption: Approximately 18.50% per annum, as stated in the hypothetical examples.

SPUMP40 Buffered Jump Securities: Structure and Key Terms

According to the filing, the securities are issued by Morgan Stanley Finance LLC and guaranteed by Morgan Stanley (NYSE:MS), filed under Registration Statement Nos. 333-293641 and 333-293641-01. The underlying index is the S&P U.S. Equity Momentum 40% VT 4% Decrement Index, a rules-based index that applies a 4% per annum decrement. The filing notes that "the decrement of 4% per annum will adversely affect the performance of the Index in all cases, whether the Index appreciates or depreciates."

The securities carry 48 potential automatic early redemption dates, the first on December 1, 2027, with a corresponding early redemption payment range of $1,185.00 to $1,195.00 per security. Payment ranges escalate across subsequent determination dates, reaching $1,909.583 to $1,958.75 per security on the 48th determination date of October 30, 2031. Early redemption is triggered if the closing level of the underlier on a determination date is at or above the call threshold level of 90% of the initial level. The filing discloses that a hypothetical +30% change on the second determination date would result in an early redemption payment of $1,200.417 per security.

At maturity, the filing's hypothetical examples show that if the underlier is flat (0.00% change) or positive, the payment at maturity would be $1,925.00 per security, assuming the call return of approximately 18.50% per annum. If the underlier falls by 15%, investors would receive $1,000.00 per security. Losses below the 15% buffer are passed through, with a -50% underlier change yielding $650.00 and a -100% change yielding $150.00 per security. The filing states the securities "will not be listed on any securities exchange and secondary trading may be limited." All payments are described as subject to the credit risk of Morgan Stanley Finance LLC and Morgan Stanley.

What Was Disclosed

Morgan Stanley Finance LLC filed a preliminary free writing prospectus for auto-callable buffered securities linked to the SPUMP40 index, with an estimated value of $936.20 per security, a 15% principal buffer, and a stated maturity of December 4, 2031.