Morgan Stanley Finance LLC filed a Free Writing Prospectus on November 2, 2026, summarizing the terms of its SPUMP40 Jump Notes with Auto-Callable Feature due November 30, 2033, linked to the S&P U.S. Equity Momentum 40% VT 4% Decrement Index.

Key Highlights

  • Issuer and guarantor: The notes are issued by Morgan Stanley Finance LLC and guaranteed by Morgan Stanley.
  • Underlier: The notes are linked to the S&P U.S. Equity Momentum 40% VT 4% Decrement Index (SPUMP40), established March 14, 2022.
  • Estimated value: $918.50 per note, or within $55.00 of that estimate, according to the filing.
  • Auto-call feature: Six annual determination dates from November 24, 2027 through November 24, 2032, each triggering early redemption if the underlier closes at or above 100% of its initial level.
  • Early redemption payments: Range from at least $1,113.50 per note on determination date one to at least $1,681.00 per note on determination date six.
  • No interest payments: The filing states the notes do not pay interest.
  • CUSIP: 61781TSF1; pricing date November 24, 2026; maturity date November 30, 2033.

Terms and Structure of the SPUMP40 Jump Notes

According to the filing, Morgan Stanley Finance LLC (MSFL) is offering Jump Notes with an Auto-Callable Feature tied to the SPUMP40 index, a proprietary index that applies a 4% per annum decrement. The filing discloses that the notes carry a pricing date of November 24, 2026, and a final maturity of November 30, 2033. The estimated value of $918.50 per note is below the original issue price, which the filing attributes to costs associated with "issuing, selling, structuring and hedging the notes."

The auto-call mechanism, as described in the filing, works across six annual determination dates. If the SPUMP40 closes at or above 100% of its initial level on any determination date, investors receive the fixed early redemption payment specified for that date. The filing provides a hypothetical example in which a 20% gain by determination date two results in an early redemption payment of $1,227.00 per note. If the underlier declines 20% on that same date, no early redemption occurs.

For notes held to maturity and not previously redeemed, the filing's hypothetical payment table shows that returns track the underlier's gain up to full participation on the upside, while losses of 20% through 100% all result in a 0.00% return on notes - meaning the filing indicates no loss of principal in those scenarios, though the filing cautions that "the notes may not pay more than the stated principal amount at maturity" and that all payments are subject to Morgan Stanley's credit risk. The filing also notes that MSFL "has no independent operations and will have no independent assets."

What Was Disclosed

The filing is a Free Writing Prospectus to Preliminary Pricing Supplement No. 19,855, filed November 2, 2026 under Registration Statement Nos. 333-293641 and 333-293641-01. It summarizes key terms, hypothetical examples, risk considerations, and tax considerations for the SPUMP40 Jump Notes due November 30, 2033.