[FWP] Morgan Stanley Free Writing Prospectus
Morgan Stanley Finance LLC, guaranteed by Morgan Stanley, is marketing SPUMP40 Contingent Income Memory Buffered Auto-Callable Securities due 1 Aug 2030. The $1,000-denominated notes reference the S&P U.S. Equity Momentum 40% VT 4% Decrement Index (ticker SPUMP40).
- Contingent coupon: 11.00 % – 12.00 % p.a., paid monthly only if the index closes ≥ 75 % of the initial level on the observation date. A memory feature allows missed coupons to be caught up.
- Auto-call: From month 13 onward, the notes are automatically redeemed at par if the index closes ≥ 100 % of the initial level on any monthly determination date.
- Downside protection: 15 % buffer. At maturity investors receive par as long as the index is not below 85 % of the initial level. Below that, repayment is reduced point-for-point, exposing investors to up to an 85 % loss.
- Pricing metrics: Pricing date 28 Jul 2025; maturity 1 Aug 2030. Morgan Stanley’s estimated value is $899 per $1,000 note (≈10 % below issue price).
- Liquidity & listing: The securities will not be listed. Secondary trading is expected to be limited and at prices set by affiliates.
The preliminary pricing supplement and risk sections highlight material risks: no participation in index upside, coupon dependence on monthly barriers, early redemption risk, credit risk of Morgan Stanley, a newly created index with limited history, 4 % annual decrement drag, leverage in index construction, and uncertain U.S. tax treatment.
Morgan Stanley Finance LLC, garantita da Morgan Stanley, sta promuovendo i titoli SPUMP40 Contingent Income Memory Buffered Auto-Callable con scadenza il 1 agosto 2030. I titoli, denominati in tagli da $1.000, fanno riferimento all'indice S&P U.S. Equity Momentum 40% VT 4% Decrement (ticker SPUMP40).
- Coupon condizionato: 11,00 % – 12,00 % annuo, pagato mensilmente solo se l'indice chiude ≥ 75 % del livello iniziale nella data di osservazione. Una funzione di memoria consente di recuperare i coupon non pagati.
- Auto-rimborso: Dal mese 13 in poi, i titoli vengono rimborsati automaticamente a valore nominale se l'indice chiude ≥ 100 % del livello iniziale in una qualsiasi data di determinazione mensile.
- Protezione al ribasso: 15 % di buffer. Alla scadenza gli investitori ricevono il valore nominale purché l'indice non sia inferiore all'85 % del livello iniziale. Al di sotto di tale soglia, il rimborso viene ridotto proporzionalmente, esponendo gli investitori a una perdita fino all'85 %.
- Parametri di prezzo: Data di prezzo 28 luglio 2025; scadenza 1 agosto 2030. Il valore stimato da Morgan Stanley è di $899 per ogni titolo da $1.000 (circa il 10 % sotto il prezzo di emissione).
- Liquidità e quotazione: I titoli non saranno quotati. Si prevede che il trading secondario sarà limitato e i prezzi saranno fissati da affiliati.
Il supplemento preliminare al prezzo e le sezioni sui rischi evidenziano rischi importanti: nessuna partecipazione all’aumento dell’indice, dipendenza del coupon da barriere mensili, rischio di rimborso anticipato, rischio di credito di Morgan Stanley, indice di recente creazione con storia limitata, decremento annuale del 4 %, leva nella costruzione dell’indice e trattamento fiscale USA incerto.
Morgan Stanley Finance LLC, garantizado por Morgan Stanley, está comercializando los valores SPUMP40 Contingent Income Memory Buffered Auto-Callable con vencimiento el 1 de agosto de 2030. Los bonos, denominados en $1,000, hacen referencia al índice S&P U.S. Equity Momentum 40% VT 4% Decrement (ticker SPUMP40).
- Cupon contingente: 11,00 % – 12,00 % anual, pagado mensualmente solo si el índice cierra ≥ 75 % del nivel inicial en la fecha de observación. Una función de memoria permite recuperar cupones no pagados.
- Auto-llamada: A partir del mes 13, los bonos se redimen automáticamente a valor nominal si el índice cierra ≥ 100 % del nivel inicial en cualquier fecha mensual de determinación.
- Protección a la baja: 15 % de buffer. Al vencimiento, los inversores reciben el valor nominal siempre que el índice no esté por debajo del 85 % del nivel inicial. Por debajo de eso, el reembolso se reduce punto por punto, exponiendo a los inversores a una pérdida de hasta el 85 %.
- Métricas de precio: Fecha de precio 28 de julio de 2025; vencimiento 1 de agosto de 2030. El valor estimado por Morgan Stanley es de $899 por cada bono de $1,000 (aproximadamente un 10 % por debajo del precio de emisión).
- Liquidez y cotización: Los valores no estarán listados. Se espera que el comercio secundario sea limitado y los precios sean establecidos por afiliados.
El suplemento preliminar de precios y las secciones de riesgos resaltan riesgos importantes: sin participación en la subida del índice, dependencia del cupón de barreras mensuales, riesgo de redención anticipada, riesgo crediticio de Morgan Stanley, índice de creación reciente con historial limitado, decremento anual del 4 %, apalancamiento en la construcción del índice y tratamiento fiscal en EE.UU. incierto.
Morgan Stanley Finance LLC는 Morgan Stanley의 보증을 받아 2030년 8월 1일 만기인 SPUMP40 Contingent Income Memory Buffered Auto-Callable 증권을 판매 중입니다. $1,000 단위로 발행된 이 노트는 S&P 미국 주식 모멘텀 40% VT 4% 감소 지수(티커 SPUMP40)를 참조합니다.
- 조건부 쿠폰: 연 11.00% – 12.00%, 관찰일에 지수가 초기 수준의 75% 이상으로 마감할 경우에만 매월 지급됩니다. 미지급 쿠폰은 메모리 기능을 통해 누적 지급됩니다.
- 자동 상환: 13개월 차부터 매월 결정일에 지수가 초기 수준의 100% 이상이면 액면가로 자동 상환됩니다.
- 하락 보호: 15% 완충 장치. 만기 시 지수가 초기 수준의 85% 미만이 아니면 액면가를 지급합니다. 그 이하일 경우 상환금액이 점진적으로 줄어 최대 85% 손실 위험이 있습니다.
- 가격 지표: 가격 결정일 2025년 7월 28일; 만기 2030년 8월 1일. Morgan Stanley 추정 가치는 $1,000 노트당 $899로, 발행가보다 약 10% 낮습니다.
- 유동성 및 상장: 이 증권은 상장되지 않습니다. 2차 거래는 제한적이며 계열사에서 가격을 설정할 것으로 예상됩니다.
예비 가격 보충 자료 및 위험 섹션에서는 주요 위험 요소를 강조합니다: 지수 상승 참여 불가, 월별 장벽에 따른 쿠폰 지급 의존, 조기 상환 위험, Morgan Stanley의 신용 위험, 제한된 이력을 가진 신설 지수, 연 4% 감소 효과, 지수 구성 내 레버리지, 그리고 불확실한 미국 세금 처리.
Morgan Stanley Finance LLC, garanti par Morgan Stanley, commercialise des titres SPUMP40 Contingent Income Memory Buffered Auto-Callable arrivant à échéance le 1er août 2030. Les billets, d’une valeur nominale de 1 000 $, référencent l’indice S&P U.S. Equity Momentum 40% VT 4% Decrement (symbole SPUMP40).
- Coupon conditionnel : 11,00 % – 12,00 % par an, versé mensuellement uniquement si l’indice clôture ≥ 75 % du niveau initial à la date d’observation. Une fonction mémoire permet de récupérer les coupons manqués.
- Rappel automatique : À partir du 13e mois, les titres sont automatiquement remboursés à leur valeur nominale si l’indice clôture ≥ 100 % du niveau initial à une date mensuelle de détermination.
- Protection à la baisse : Tampon de 15 %. À l’échéance, les investisseurs reçoivent la valeur nominale tant que l’indice ne descend pas en dessous de 85 % du niveau initial. En dessous, le remboursement est réduit point par point, exposant les investisseurs à une perte pouvant atteindre 85 %.
- Paramètres de tarification : Date de tarification 28 juillet 2025 ; échéance 1er août 2030. La valeur estimée par Morgan Stanley est de 899 $ par billet de 1 000 $ (environ 10 % en dessous du prix d’émission).
- Liquidité et cotation : Les titres ne seront pas cotés. Le marché secondaire devrait être limité et les prix fixés par des affiliés.
Le supplément de prix préliminaire et les sections sur les risques soulignent des risques importants : absence de participation à la hausse de l’indice, dépendance du coupon aux barrières mensuelles, risque de remboursement anticipé, risque de crédit de Morgan Stanley, indice récemment créé avec un historique limité, effet de décrément annuel de 4 %, levier dans la construction de l’indice, et incertitude sur le traitement fiscal américain.
Morgan Stanley Finance LLC, garantiert von Morgan Stanley, vermarktet die SPUMP40 Contingent Income Memory Buffered Auto-Callable Securities mit Fälligkeit am 1. August 2030. Die auf $1.000 lautenden Notes beziehen sich auf den S&P U.S. Equity Momentum 40% VT 4% Decrement Index (Ticker SPUMP40).
- Bedingter Kupon: 11,00 % – 12,00 % p.a., monatlich zahlbar nur, wenn der Index am Beobachtungstag ≥ 75 % des Anfangswerts schließt. Eine Memory-Funktion ermöglicht das Nachholen verpasster Kupons.
- Auto-Call: Ab Monat 13 werden die Notes automatisch zum Nennwert zurückgezahlt, wenn der Index an einem monatlichen Feststellungstag ≥ 100 % des Anfangswerts schließt.
- Abwärtsschutz: 15 % Puffer. Bei Fälligkeit erhalten Investoren den Nennwert, solange der Index nicht unter 85 % des Anfangswerts liegt. Darunter wird die Rückzahlung punktgenau reduziert, was Verluste von bis zu 85 % bedeutet.
- Preiskennzahlen: Preisstellung am 28. Juli 2025; Fälligkeit 1. August 2030. Der geschätzte Wert von Morgan Stanley liegt bei $899 pro $1.000 Note (ca. 10 % unter dem Ausgabepreis).
- Liquidität & Notierung: Die Wertpapiere werden nicht notiert. Der Sekundärhandel wird voraussichtlich begrenzt sein und die Preise von verbundenen Unternehmen festgelegt.
Das vorläufige Preiszusatzblatt und die Risikosektionen heben wesentliche Risiken hervor: keine Teilnahme an Kurssteigerungen des Index, Kuponabhängigkeit von monatlichen Barrieren, Risiko der vorzeitigen Rückzahlung, Kreditrisiko von Morgan Stanley, neu geschaffener Index mit begrenzter Historie, 4 % jährlicher Abzug, Hebelwirkung in der Indexkonstruktion und unsichere US-Steuerbehandlung.
- 11–12 % annual contingent coupon offers substantially higher headline yield than traditional fixed-income alternatives.
- Monthly memory feature can recover previously missed coupons if the barrier is later satisfied.
- 15 % downside buffer provides partial protection against moderate index declines.
- Monthly auto-call mechanism could return principal early, shortening effective maturity and realizing yield quickly.
- Full principal repayment at par if the index is at or above initial level at any auto-call date or maturity.
- Estimated value is $899, implying about a 10 % structuring/issuance premium paid by investors.
- No upside participation; returns are capped at coupons and par value even if the index soars.
- Capital loss beyond-15 % buffer exposes investors to up to an 85 % loss of principal.
- Unlisted security with potentially illiquid and discounted secondary trading.
- Credit risk to Morgan Stanley; payment depends on issuer and guarantor solvency.
- Underlying index launched in 2022 with limited live history and a 4 % decrement that drags performance.
Insights
TL;DR Attractive double-digit coupon, but 10 % issue premium, limited upside, and 15 % buffer leave risk/return profile balanced.
The 11–12 % contingent coupon looks compelling relative to money-market and investment-grade yields, especially with monthly compounding and a memory feature. However, payments require the SPUMP40 index to remain above 75 % of its start level; investors receive nothing in weak markets. Early auto-call at par caps returns and shortens duration. Downside exposure after a modest 15 % buffer means material capital loss potential if the index declines sharply; note the table shows a $550 payout at –60 %. Estimated value of $899 implies roughly 101 bp p.a. of embedded fees and hedging cost, reducing economic value. Credit exposure to Morgan Stanley and the note’s lack of exchange listing further weaken liquidity. Overall, risk and reward appear roughly in equilibrium—suited only to investors comfortable with equity downside and issuer credit risk.
TL;DR Product is niche yield enhancer; complexity, low secondary liquidity, and new index increase portfolio risk.
From an allocation perspective, these securities function as a high-yield substitute funded by equity risk. The SPUMP40 index is young (incepted 2022) and structurally leveraged with a 4 % decrement drag; back-testing is limited, undermining confidence in barrier resilience. Monthly auto-call could terminate exposure quickly, delivering only limited coupon accrual while leaving reinvestment risk. Conversely, a protracted drawdown below –15 % converts the note into a buffered equity position with capped recovery. With no listing, exit pricing will depend on Morgan Stanley’s bid—often wide in stressed markets. Given the 10 % premium over fair value and tax uncertainty, I view the instrument as opportunistic rather than core, appropriate only for sophisticated investors who actively monitor structured exposures.
Morgan Stanley Finance LLC, garantita da Morgan Stanley, sta promuovendo i titoli SPUMP40 Contingent Income Memory Buffered Auto-Callable con scadenza il 1 agosto 2030. I titoli, denominati in tagli da $1.000, fanno riferimento all'indice S&P U.S. Equity Momentum 40% VT 4% Decrement (ticker SPUMP40).
- Coupon condizionato: 11,00 % – 12,00 % annuo, pagato mensilmente solo se l'indice chiude ≥ 75 % del livello iniziale nella data di osservazione. Una funzione di memoria consente di recuperare i coupon non pagati.
- Auto-rimborso: Dal mese 13 in poi, i titoli vengono rimborsati automaticamente a valore nominale se l'indice chiude ≥ 100 % del livello iniziale in una qualsiasi data di determinazione mensile.
- Protezione al ribasso: 15 % di buffer. Alla scadenza gli investitori ricevono il valore nominale purché l'indice non sia inferiore all'85 % del livello iniziale. Al di sotto di tale soglia, il rimborso viene ridotto proporzionalmente, esponendo gli investitori a una perdita fino all'85 %.
- Parametri di prezzo: Data di prezzo 28 luglio 2025; scadenza 1 agosto 2030. Il valore stimato da Morgan Stanley è di $899 per ogni titolo da $1.000 (circa il 10 % sotto il prezzo di emissione).
- Liquidità e quotazione: I titoli non saranno quotati. Si prevede che il trading secondario sarà limitato e i prezzi saranno fissati da affiliati.
Il supplemento preliminare al prezzo e le sezioni sui rischi evidenziano rischi importanti: nessuna partecipazione all’aumento dell’indice, dipendenza del coupon da barriere mensili, rischio di rimborso anticipato, rischio di credito di Morgan Stanley, indice di recente creazione con storia limitata, decremento annuale del 4 %, leva nella costruzione dell’indice e trattamento fiscale USA incerto.
Morgan Stanley Finance LLC, garantizado por Morgan Stanley, está comercializando los valores SPUMP40 Contingent Income Memory Buffered Auto-Callable con vencimiento el 1 de agosto de 2030. Los bonos, denominados en $1,000, hacen referencia al índice S&P U.S. Equity Momentum 40% VT 4% Decrement (ticker SPUMP40).
- Cupon contingente: 11,00 % – 12,00 % anual, pagado mensualmente solo si el índice cierra ≥ 75 % del nivel inicial en la fecha de observación. Una función de memoria permite recuperar cupones no pagados.
- Auto-llamada: A partir del mes 13, los bonos se redimen automáticamente a valor nominal si el índice cierra ≥ 100 % del nivel inicial en cualquier fecha mensual de determinación.
- Protección a la baja: 15 % de buffer. Al vencimiento, los inversores reciben el valor nominal siempre que el índice no esté por debajo del 85 % del nivel inicial. Por debajo de eso, el reembolso se reduce punto por punto, exponiendo a los inversores a una pérdida de hasta el 85 %.
- Métricas de precio: Fecha de precio 28 de julio de 2025; vencimiento 1 de agosto de 2030. El valor estimado por Morgan Stanley es de $899 por cada bono de $1,000 (aproximadamente un 10 % por debajo del precio de emisión).
- Liquidez y cotización: Los valores no estarán listados. Se espera que el comercio secundario sea limitado y los precios sean establecidos por afiliados.
El suplemento preliminar de precios y las secciones de riesgos resaltan riesgos importantes: sin participación en la subida del índice, dependencia del cupón de barreras mensuales, riesgo de redención anticipada, riesgo crediticio de Morgan Stanley, índice de creación reciente con historial limitado, decremento anual del 4 %, apalancamiento en la construcción del índice y tratamiento fiscal en EE.UU. incierto.
Morgan Stanley Finance LLC는 Morgan Stanley의 보증을 받아 2030년 8월 1일 만기인 SPUMP40 Contingent Income Memory Buffered Auto-Callable 증권을 판매 중입니다. $1,000 단위로 발행된 이 노트는 S&P 미국 주식 모멘텀 40% VT 4% 감소 지수(티커 SPUMP40)를 참조합니다.
- 조건부 쿠폰: 연 11.00% – 12.00%, 관찰일에 지수가 초기 수준의 75% 이상으로 마감할 경우에만 매월 지급됩니다. 미지급 쿠폰은 메모리 기능을 통해 누적 지급됩니다.
- 자동 상환: 13개월 차부터 매월 결정일에 지수가 초기 수준의 100% 이상이면 액면가로 자동 상환됩니다.
- 하락 보호: 15% 완충 장치. 만기 시 지수가 초기 수준의 85% 미만이 아니면 액면가를 지급합니다. 그 이하일 경우 상환금액이 점진적으로 줄어 최대 85% 손실 위험이 있습니다.
- 가격 지표: 가격 결정일 2025년 7월 28일; 만기 2030년 8월 1일. Morgan Stanley 추정 가치는 $1,000 노트당 $899로, 발행가보다 약 10% 낮습니다.
- 유동성 및 상장: 이 증권은 상장되지 않습니다. 2차 거래는 제한적이며 계열사에서 가격을 설정할 것으로 예상됩니다.
예비 가격 보충 자료 및 위험 섹션에서는 주요 위험 요소를 강조합니다: 지수 상승 참여 불가, 월별 장벽에 따른 쿠폰 지급 의존, 조기 상환 위험, Morgan Stanley의 신용 위험, 제한된 이력을 가진 신설 지수, 연 4% 감소 효과, 지수 구성 내 레버리지, 그리고 불확실한 미국 세금 처리.
Morgan Stanley Finance LLC, garanti par Morgan Stanley, commercialise des titres SPUMP40 Contingent Income Memory Buffered Auto-Callable arrivant à échéance le 1er août 2030. Les billets, d’une valeur nominale de 1 000 $, référencent l’indice S&P U.S. Equity Momentum 40% VT 4% Decrement (symbole SPUMP40).
- Coupon conditionnel : 11,00 % – 12,00 % par an, versé mensuellement uniquement si l’indice clôture ≥ 75 % du niveau initial à la date d’observation. Une fonction mémoire permet de récupérer les coupons manqués.
- Rappel automatique : À partir du 13e mois, les titres sont automatiquement remboursés à leur valeur nominale si l’indice clôture ≥ 100 % du niveau initial à une date mensuelle de détermination.
- Protection à la baisse : Tampon de 15 %. À l’échéance, les investisseurs reçoivent la valeur nominale tant que l’indice ne descend pas en dessous de 85 % du niveau initial. En dessous, le remboursement est réduit point par point, exposant les investisseurs à une perte pouvant atteindre 85 %.
- Paramètres de tarification : Date de tarification 28 juillet 2025 ; échéance 1er août 2030. La valeur estimée par Morgan Stanley est de 899 $ par billet de 1 000 $ (environ 10 % en dessous du prix d’émission).
- Liquidité et cotation : Les titres ne seront pas cotés. Le marché secondaire devrait être limité et les prix fixés par des affiliés.
Le supplément de prix préliminaire et les sections sur les risques soulignent des risques importants : absence de participation à la hausse de l’indice, dépendance du coupon aux barrières mensuelles, risque de remboursement anticipé, risque de crédit de Morgan Stanley, indice récemment créé avec un historique limité, effet de décrément annuel de 4 %, levier dans la construction de l’indice, et incertitude sur le traitement fiscal américain.
Morgan Stanley Finance LLC, garantiert von Morgan Stanley, vermarktet die SPUMP40 Contingent Income Memory Buffered Auto-Callable Securities mit Fälligkeit am 1. August 2030. Die auf $1.000 lautenden Notes beziehen sich auf den S&P U.S. Equity Momentum 40% VT 4% Decrement Index (Ticker SPUMP40).
- Bedingter Kupon: 11,00 % – 12,00 % p.a., monatlich zahlbar nur, wenn der Index am Beobachtungstag ≥ 75 % des Anfangswerts schließt. Eine Memory-Funktion ermöglicht das Nachholen verpasster Kupons.
- Auto-Call: Ab Monat 13 werden die Notes automatisch zum Nennwert zurückgezahlt, wenn der Index an einem monatlichen Feststellungstag ≥ 100 % des Anfangswerts schließt.
- Abwärtsschutz: 15 % Puffer. Bei Fälligkeit erhalten Investoren den Nennwert, solange der Index nicht unter 85 % des Anfangswerts liegt. Darunter wird die Rückzahlung punktgenau reduziert, was Verluste von bis zu 85 % bedeutet.
- Preiskennzahlen: Preisstellung am 28. Juli 2025; Fälligkeit 1. August 2030. Der geschätzte Wert von Morgan Stanley liegt bei $899 pro $1.000 Note (ca. 10 % unter dem Ausgabepreis).
- Liquidität & Notierung: Die Wertpapiere werden nicht notiert. Der Sekundärhandel wird voraussichtlich begrenzt sein und die Preise von verbundenen Unternehmen festgelegt.
Das vorläufige Preiszusatzblatt und die Risikosektionen heben wesentliche Risiken hervor: keine Teilnahme an Kurssteigerungen des Index, Kuponabhängigkeit von monatlichen Barrieren, Risiko der vorzeitigen Rückzahlung, Kreditrisiko von Morgan Stanley, neu geschaffener Index mit begrenzter Historie, 4 % jährlicher Abzug, Hebelwirkung in der Indexkonstruktion und unsichere US-Steuerbehandlung.
Free Writing Prospectus to Preliminary Pricing Supplement No. 9,121
Registration Statement Nos. 333-275587; 333-275587-01
Dated July 1, 2025; Filed pursuant to Rule 433
Morgan Stanley
SX5E Dual Directional Trigger PLUS due August 1, 2030
This document provides a summary of the terms of the securities. Investors must carefully review the accompanying preliminary pricing supplement referenced below, product supplement, index supplement and prospectus, and the “Risk Considerations” on the following page, prior to making an investment decision.
|
Terms |
|
|
Issuer: |
Morgan Stanley Finance LLC |
|
Guarantor: |
Morgan Stanley |
|
Underlier: |
EURO STOXX 50® Index (SX5E) |
|
Leverage factor: |
148% to 158% |
|
Downside threshold level: |
70% of the initial level |
|
Absolute return participation rate: |
100% |
|
Pricing date: |
July 28, 2025 |
|
Observation date: |
July 29, 2030 |
|
Maturity date: |
August 1, 2030 |
|
CUSIP: |
61778NDL2 |
|
Estimated value: |
$919.20 per security, or within $55.00 of that estimate |
|
Preliminary pricing supplement: |
https://www.sec.gov/Archives/edgar/data/895421/000183988225035614/ms9121_424b2-19384.htm |
1All payments are subject to our credit risk
Hypothetical Payment at Maturity1
The payoff diagram and table below illustrate the payment at maturity for a range of hypothetical performances of the underlier over the term of the securities.
|
% Change in Closing Level of the Underlier |
Payment at Maturity per Security |
|
|
+60.00% |
$1,888.00* |
|
|
+40.00% |
$1,592.00* |
|
|
+20.00% |
$1,296.00* |
|
|
0.00% |
$1,000.00 |
|
|
-20.00% |
$1,200.00 |
|
|
-30.00% |
$1,300.00 |
|
|
-31.00% |
$690.00 |
|
|
-40.00% |
$600.00 |
|
|
-60.00% |
$400.00 |
|
|
-80.00% |
$200.00 |
|
|
-100.00% |
$0.00 |
|
|
*Assumes a leverage factor of 148% |
||
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-584-6837.
Underlier(s)
For more information about the underlier(s), including historical performance information, see the accompanying preliminary pricing supplement.
Risk Considerations
The risks set forth below are discussed in more detail in the “Risk Factors” section in the accompanying preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.
Risks Relating to an Investment in the Securities
●The securities do not guarantee the return of any principal and do not pay interest.
●Any positive return on the securities that is based on the depreciation of the underlier is effectively capped.
●The amount payable on the securities is not linked to the value of the underlier at any time other than the observation date.
●The market price of the securities may be influenced by many unpredictable factors.
●The securities are subject to our credit risk, and any actual or anticipated changes to our credit ratings or credit spreads may adversely affect the market value of the securities.
●As a finance subsidiary, MSFL has no independent operations and will have no independent assets.
●The rate we are willing to pay for securities of this type, maturity and issuance size is likely to be lower than the rate implied by our secondary market credit spreads and advantageous to us. 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, cause the estimated value of the securities to be less than the original issue price and will adversely affect secondary market prices.
●The estimated value of the securities is determined by reference to our pricing and valuation models, which may differ from those of other dealers and is not a maximum or minimum secondary market price.
●The securities will not be listed on any securities exchange and secondary trading may be limited.
●As discussed in more detail in the accompanying product supplement, investing in the securities is not equivalent to investing in the underlier(s).
●The U.S. federal income tax consequences of an investment in the securities are uncertain.
Risks Relating to the Underlier(s)
●Because your return on the securities will depend upon the performance of the underlier(s), the securities are subject to the following risk(s), as discussed in more detail in the accompanying product supplement.
oThere are risks associated with investments in securities linked to the value of foreign equity securities.
oAdjustments to an underlying index could adversely affect the value of the securities.
Risks Relating to Conflicts of Interest
●The calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL, will make determinations with respect to the securities.
●Hedging and trading activity by our affiliates could potentially adversely affect the value of the securities.
Tax Considerations
You should review carefully the discussion in the accompanying preliminary pricing supplement under the caption “Additional Information About the Securities– United States federal income tax considerations” concerning the U.S. federal income tax consequences of an investment in the securities, and you should consult your tax adviser.
FAQ
What is the coupon rate on Morgan Stanley's SPUMP40 contingent income securities?
When can the MS SPUMP40 notes be automatically redeemed?
How much downside protection do the Morgan Stanley buffered securities provide?
What is the estimated value versus issue price of these MS structured notes?
Will the SPUMP40 contingent income securities trade on an exchange?
What are the key risks associated with the SPUMP40 index itself?
