Morgan Stanley Finance LLC filed a free writing prospectus on November 6, 2026, disclosing preliminary terms for SPXGN406 Jump Securities with an auto-callable feature due November 28, 2031, linked to the S&P 500 Gold Navigator 40% VT 6% Decrement Index (USD) ER.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley as guarantor; all payments are subject to Morgan Stanley's credit risk.
  • Underlier: The securities are linked to the S&P 500 Gold Navigator 40% VT 6% Decrement Index (USD) ER (SPXGN406), which deducts 6% per annum daily from its level.
  • Estimated value: The filing states an estimated value of $897.10 per security, or within $47.10 of that estimate, against an implied original issue price basis.
  • Auto-call threshold: The first early redemption determination date is November 26, 2027, with a call threshold level set at 90% of the initial level and an early redemption payment of $1,190.00 per security.
  • Downside threshold: A downside threshold level is set at 50% of the initial level; hypothetical examples show a loss of principal begins below that level, with a -100% underlier scenario producing $0.00 at maturity.
  • Maturity date: The final determination date is November 24, 2031, and the maturity date is November 28, 2031, with CUSIP 61781TWT6.
  • No listing: According to the filing, "the securities will not be listed on any securities exchange and secondary trading may be limited."

Preliminary Terms of the SPXGN406 Jump Securities Offering

According to the filing, Morgan Stanley Finance LLC is offering Jump Securities with an auto-callable feature through Preliminary Pricing Supplement No. 19,963, filed pursuant to Rule 433 under Registration Statement Nos. 333-293641 and 333-293641-01. The pricing date is disclosed as November 24, 2026, with the final determination date and maturity date set at November 24, 2031, and November 28, 2031, respectively. The securities carry CUSIP 61781TWT6.

The filing discloses 48 potential early redemption determination dates, beginning November 26, 2027, and running monthly through October 24, 2031. The early redemption payment rises with each successive determination date, from $1,190.00 at determination date one to $1,934.167 at determination date 48. The call threshold level for all 48 dates is 90% of the initial level, according to the filing. If the underlier closes at or above that threshold on a determination date, the securities are automatically redeemed at the stated payment for that period.

The filing notes that the estimated value of $897.10 per security is determined by reference to Morgan Stanley's own pricing and valuation models, and states it "may differ from those of other dealers and is not a maximum or minimum secondary market price." The filing further discloses that the securities do not guarantee return of any principal, do not provide for regular interest payments, and that investors "will not participate in any appreciation in the value of the underlier." The underlying index's 6% per annum daily decrement is identified as a risk that "will adversely affect the performance of the underlying index in all cases." The filing also notes the underlying index "has very limited operating history."

What Was Disclosed

Morgan Stanley Finance LLC disclosed preliminary terms for auto-callable Jump Securities linked to a gold-and-S&P-500-futures decrement index, including 48 monthly auto-call dates, a 50% downside threshold, an estimated value of $897.10 per security, and a maturity date of November 28, 2031.