[FWP] Morgan Stanley Free Writing Prospectus
Morgan Stanley Finance LLC, guaranteed by Morgan Stanley, is marketing SX5E Dual Directional Buffered PLUS notes maturing 1 August 2030 (pricing 28 July 2025, CUSIP 61778K7E1). The unsecured notes are linked solely to the EURO STOXX 50 Index (SX5E) and have a face amount of $1,000. The bank’s internal models place the estimated value at $920.20 (±$55), indicating an embedded cost of roughly 8 cts on the dollar.
The structure is dual-directional: (i) if SX5E ends above the initial level, investors receive the positive index return multiplied by a leverage factor of 157%–172% (exact rate set on pricing); (ii) if SX5E ends below the initial level but by no more than 15%, investors earn a 100% “absolute return” on that decline, turning a moderate loss in the index into a gain on the note; (iii) once the index falls beyond the 15% buffer, principal is exposed one-for-one, creating a maximum loss of 85%. The note pays no periodic coupon and redemption depends exclusively on the single observation date of 29 July 2030.
Key risks highlighted include credit exposure to Morgan Stanley, the absence of exchange listing or guaranteed liquidity, model-based valuation that is below issue price, potential adverse hedging impacts by affiliates, and uncertain U.S. tax treatment. The securities suit investors comfortable with MSCI Europe exposure, long holding periods and the possibility of substantial capital loss in exchange for leveraged upside and limited downside protection.
Morgan Stanley Finance LLC, garantita da Morgan Stanley, sta promuovendo le note SX5E Dual Directional Buffered PLUS con scadenza il 1° agosto 2030 (prezzo del 28 luglio 2025, CUSIP 61778K7E1). Le note unsecured sono collegate esclusivamente all'Indice EURO STOXX 50 (SX5E) e hanno un valore nominale di 1.000 dollari. I modelli interni della banca stimano un valore approssimativo di 920,20 $ (±55 $), indicando un costo implicito di circa 8 centesimi per dollaro.
La struttura è bidirezionale: (i) se l'SX5E chiude sopra il livello iniziale, gli investitori ricevono il rendimento positivo dell'indice moltiplicato per un fattore di leva tra il 157% e il 172% (tasso esatto definito al prezzo); (ii) se l'SX5E termina sotto il livello iniziale ma con una perdita non superiore al 15%, gli investitori ottengono un “rendimento assoluto” del 100% su quella perdita, trasformando una perdita moderata dell'indice in un guadagno sulla nota; (iii) se l'indice scende oltre la soglia del 15%, il capitale è esposto in modo lineare, con una perdita massima dell'85%. La nota non paga cedole periodiche e il rimborso dipende esclusivamente dalla data unica di osservazione del 29 luglio 2030.
I principali rischi evidenziati includono l'esposizione creditizia verso Morgan Stanley, l'assenza di quotazione in borsa o di liquidità garantita, la valutazione basata su modelli che risulta inferiore al prezzo di emissione, possibili effetti negativi di copertura da parte di affiliate e un trattamento fiscale statunitense incerto. Questi titoli sono adatti a investitori che accettano l'esposizione all'MSCI Europe, lunghi orizzonti temporali e la possibilità di perdite di capitale significative in cambio di un potenziale rialzo con leva e una protezione limitata al ribasso.
Morgan Stanley Finance LLC, garantizada por Morgan Stanley, está comercializando notas SX5E Dual Directional Buffered PLUS con vencimiento el 1 de agosto de 2030 (precio al 28 de julio de 2025, CUSIP 61778K7E1). Las notas no garantizadas están vinculadas únicamente al Índice EURO STOXX 50 (SX5E) y tienen un valor nominal de 1,000 dólares. Los modelos internos del banco estiman un valor aproximado de 920,20 $ (±55 $), lo que indica un costo implícito de aproximadamente 8 centavos por dólar.
La estructura es bidireccional: (i) si el SX5E termina por encima del nivel inicial, los inversores reciben el rendimiento positivo del índice multiplicado por un factor de apalancamiento entre 157% y 172% (tasa exacta fijada en la valoración); (ii) si el SX5E termina por debajo del nivel inicial pero con una caída de no más del 15%, los inversores obtienen un “retorno absoluto” del 100% sobre esa caída, convirtiendo una pérdida moderada del índice en una ganancia para la nota; (iii) si el índice cae más allá del 15%, el capital está expuesto uno a uno, generando una pérdida máxima del 85%. La nota no paga cupón periódico y el reembolso depende exclusivamente de la única fecha de observación del 29 de julio de 2030.
Los riesgos clave incluyen la exposición crediticia a Morgan Stanley, la ausencia de cotización en bolsa o liquidez garantizada, valoración basada en modelos que es inferior al precio de emisión, posibles impactos adversos por coberturas de afiliados y un tratamiento fiscal estadounidense incierto. Estos valores son adecuados para inversores cómodos con exposición al MSCI Europe, con horizontes de inversión largos y la posibilidad de pérdidas de capital significativas a cambio de un potencial de ganancias apalancadas y protección limitada a la baja.
Morgan Stanley Finance LLC는 Morgan Stanley의 보증을 받아 SX5E Dual Directional Buffered PLUS 노트를 2030년 8월 1일 만기(2025년 7월 28일 가격 책정, CUSIP 61778K7E1)로 판매하고 있습니다. 이 무담보 노트는 EURO STOXX 50 지수(SX5E)에만 연동되며 액면가는 1,000달러입니다. 은행 내부 모델에 따르면 추정 가치는 920.20달러(±55달러)로, 대략 달러당 8센트의 내재 비용이 있음을 나타냅니다.
구조는 양방향입니다: (i) SX5E가 초기 수준 이상으로 마감하면 투자자는 지수의 양수 수익률에 157%~172%의 레버리지 배율(정확한 비율은 가격 책정 시 결정)을 곱한 금액을 받습니다; (ii) SX5E가 초기 수준 이하로 마감하되 15% 이내의 하락일 경우, 투자자는 그 하락에 대해 100% “절대 수익”을 얻어 지수의 완만한 손실을 노트의 이익으로 전환합니다; (iii) 지수가 15% 버퍼를 넘어서 하락하면 원금은 1대1로 노출되어 최대 85% 손실이 발생합니다. 노트는 정기 쿠폰을 지급하지 않으며 상환은 2030년 7월 29일 단일 관측일에만 의존합니다.
주요 위험 요소는 Morgan Stanley에 대한 신용 노출, 상장 또는 보장된 유동성 부재, 발행가보다 낮은 모델 기반 평가, 계열사의 불리한 헤지 영향 가능성, 그리고 미국 세금 처리 불확실성을 포함합니다. 이 증권은 MSCI Europe 노출에 익숙하고 장기 보유 기간을 감수하며 상당한 자본 손실 가능성을 받아들이는 투자자에게 적합하며, 레버리지 상승 잠재력과 제한된 하방 보호를 제공합니다.
Morgan Stanley Finance LLC, garantie par Morgan Stanley, commercialise des notes SX5E Dual Directional Buffered PLUS arrivant à échéance le 1er août 2030 (prix au 28 juillet 2025, CUSIP 61778K7E1). Ces notes non sécurisées sont uniquement liées à l'indice EURO STOXX 50 (SX5E) et ont une valeur nominale de 1 000 $. Les modèles internes de la banque estiment une valeur approximative de 920,20 $ (±55 $), indiquant un coût implicite d'environ 8 cents par dollar.
La structure est bidirectionnelle : (i) si le SX5E termine au-dessus du niveau initial, les investisseurs reçoivent le rendement positif de l’indice multiplié par un facteur de levier compris entre 157 % et 172 % (taux exact fixé lors de la tarification) ; (ii) si le SX5E termine en dessous du niveau initial mais avec une baisse n’excédant pas 15 %, les investisseurs perçoivent un rendement absolu de 100 % sur cette baisse, transformant une perte modérée de l’indice en gain sur la note ; (iii) si l’indice chute au-delà de la marge de 15 %, le capital est exposé un pour un, entraînant une perte maximale de 85 %. La note ne verse aucun coupon périodique et le remboursement dépend exclusivement de la date unique d’observation du 29 juillet 2030.
Les principaux risques soulignés incluent l'exposition au crédit de Morgan Stanley, l’absence de cotation en bourse ou de liquidité garantie, une valorisation basée sur des modèles inférieure au prix d’émission, des impacts potentiellement défavorables des couvertures par des affiliés, ainsi qu’un traitement fiscal américain incertain. Ces titres conviennent aux investisseurs à l’aise avec une exposition MSCI Europe, des horizons d’investissement longs et la possibilité de pertes en capital importantes en échange d’un potentiel de gain à effet de levier et d’une protection limitée à la baisse.
Morgan Stanley Finance LLC, garantiert von Morgan Stanley, vermarktet SX5E Dual Directional Buffered PLUS-Notes mit Fälligkeit am 1. August 2030 (Preisfeststellung am 28. Juli 2025, CUSIP 61778K7E1). Die unbesicherten Notes sind ausschließlich an den EURO STOXX 50 Index (SX5E) gekoppelt und haben einen Nennwert von 1.000 USD. Die internen Modelle der Bank schätzen den ungefähren Wert auf 920,20 USD (±55 USD), was auf einen eingebetteten Kostenabschlag von etwa 8 Cent pro Dollar hinweist.
Die Struktur ist bidirektional: (i) endet der SX5E über dem Anfangswert, erhalten Anleger die positive Indexrendite multipliziert mit einem Hebelfaktor von 157 % bis 172 % (genauer Satz bei Preisfeststellung festgelegt); (ii) endet der SX5E unter dem Anfangswert, aber nicht mehr als 15 % darunter, erzielen Anleger eine 100 % „Absolute Rendite“ auf diesen Rückgang, wodurch ein moderater Indexverlust in einen Gewinn der Note umgewandelt wird; (iii) fällt der Index über die 15 %-Pufferzone hinaus, ist das Kapital eins-zu-eins exponiert, was einen maximalen Verlust von 85 % bedeutet. Die Note zahlt keine periodischen Kupons, und die Rückzahlung hängt ausschließlich vom einzigen Beobachtungstag am 29. Juli 2030 ab.
Wesentliche Risiken umfassen die Kreditexponierung gegenüber Morgan Stanley, das Fehlen einer Börsennotierung oder garantierter Liquidität, eine modellbasierte Bewertung, die unter dem Ausgabepreis liegt, potenzielle negative Absicherungseffekte durch verbundene Unternehmen sowie eine unsichere US-Steuerbehandlung. Die Wertpapiere eignen sich für Anleger, die mit einer MSCI Europe-Exponierung vertraut sind, langfristige Haltedauern akzeptieren und die Möglichkeit erheblicher Kapitalverluste im Tausch für gehebelte Aufwärtspotenziale und begrenzten Abwärtsschutz in Kauf nehmen.
- 157%–172% leveraged participation on any positive SX5E performance, enhancing upside potential.
- Dual-directional 15% buffer converts moderate index declines into gains, offering downside mitigation.
- Full principal repayment at maturity if index change is between 0% and -15%, unlike plain vanilla notes.
- Guarantee from Morgan Stanley provides investment-grade backing.
- Estimated value of $920.20 sits about 8% below the $1,000 issue price, indicating high embedded costs.
- No periodic coupon; total return entirely dependent on final index level.
- Maximum loss of 85% if SX5E falls 100%, exposing investors to significant capital risk.
- Unsecured credit exposure to Morgan Stanley; adverse rating moves can erode market value.
- Notes will not be exchange-listed, leading to limited secondary liquidity and potentially wide spreads.
- Single observation date concentrates market-timing risk.
- U.S. tax treatment is uncertain, requiring specialist advice.
Insights
TL;DR: Leveraged upside and 15% buffer offset by 8% issue premium, no coupon and MS credit risk.
The note offers an attractive 1.57-1.72× participation on SX5E gains and converts the first 15% of losses into positive return, creating a convex pay-off that retail investors often seek. However, the $920.20 estimated value versus the $1,000 issue price means buyers surrender roughly 7.9% in upfront economic value to fees and hedging costs, eroding expected return. Lack of interim observations and no secondary listing add path-dependency and liquidity risk. Credit risk is non-trivial given the 5-year tenor, though Morgan Stanley remains investment-grade. Overall, suitable only for investors with a defined bullish-to-sideways view on European large-caps who are willing to buy-and-hold through 2030.
TL;DR: 85% maximum loss, single-date exposure and valuation discount make risk/return finely balanced.
While the 15% buffer shields moderate drawdowns, once breached losses accelerate linearly, producing a fat-tail loss of up to 85%. The product’s economics already embed an 8% cost, and the issuer’s hedging activity may widen bid-ask spreads, compounding exit risk. The single observation date creates event-risk concentration—any market shock near July 2030 directly impacts payout. Finally, investors face unsecured exposure to Morgan Stanley; any downgrade would directly pressure secondary pricing. These factors neutralize the headline leverage, resulting in a risk profile better classified as speculative than defensive.
Morgan Stanley Finance LLC, garantita da Morgan Stanley, sta promuovendo le note SX5E Dual Directional Buffered PLUS con scadenza il 1° agosto 2030 (prezzo del 28 luglio 2025, CUSIP 61778K7E1). Le note unsecured sono collegate esclusivamente all'Indice EURO STOXX 50 (SX5E) e hanno un valore nominale di 1.000 dollari. I modelli interni della banca stimano un valore approssimativo di 920,20 $ (±55 $), indicando un costo implicito di circa 8 centesimi per dollaro.
La struttura è bidirezionale: (i) se l'SX5E chiude sopra il livello iniziale, gli investitori ricevono il rendimento positivo dell'indice moltiplicato per un fattore di leva tra il 157% e il 172% (tasso esatto definito al prezzo); (ii) se l'SX5E termina sotto il livello iniziale ma con una perdita non superiore al 15%, gli investitori ottengono un “rendimento assoluto” del 100% su quella perdita, trasformando una perdita moderata dell'indice in un guadagno sulla nota; (iii) se l'indice scende oltre la soglia del 15%, il capitale è esposto in modo lineare, con una perdita massima dell'85%. La nota non paga cedole periodiche e il rimborso dipende esclusivamente dalla data unica di osservazione del 29 luglio 2030.
I principali rischi evidenziati includono l'esposizione creditizia verso Morgan Stanley, l'assenza di quotazione in borsa o di liquidità garantita, la valutazione basata su modelli che risulta inferiore al prezzo di emissione, possibili effetti negativi di copertura da parte di affiliate e un trattamento fiscale statunitense incerto. Questi titoli sono adatti a investitori che accettano l'esposizione all'MSCI Europe, lunghi orizzonti temporali e la possibilità di perdite di capitale significative in cambio di un potenziale rialzo con leva e una protezione limitata al ribasso.
Morgan Stanley Finance LLC, garantizada por Morgan Stanley, está comercializando notas SX5E Dual Directional Buffered PLUS con vencimiento el 1 de agosto de 2030 (precio al 28 de julio de 2025, CUSIP 61778K7E1). Las notas no garantizadas están vinculadas únicamente al Índice EURO STOXX 50 (SX5E) y tienen un valor nominal de 1,000 dólares. Los modelos internos del banco estiman un valor aproximado de 920,20 $ (±55 $), lo que indica un costo implícito de aproximadamente 8 centavos por dólar.
La estructura es bidireccional: (i) si el SX5E termina por encima del nivel inicial, los inversores reciben el rendimiento positivo del índice multiplicado por un factor de apalancamiento entre 157% y 172% (tasa exacta fijada en la valoración); (ii) si el SX5E termina por debajo del nivel inicial pero con una caída de no más del 15%, los inversores obtienen un “retorno absoluto” del 100% sobre esa caída, convirtiendo una pérdida moderada del índice en una ganancia para la nota; (iii) si el índice cae más allá del 15%, el capital está expuesto uno a uno, generando una pérdida máxima del 85%. La nota no paga cupón periódico y el reembolso depende exclusivamente de la única fecha de observación del 29 de julio de 2030.
Los riesgos clave incluyen la exposición crediticia a Morgan Stanley, la ausencia de cotización en bolsa o liquidez garantizada, valoración basada en modelos que es inferior al precio de emisión, posibles impactos adversos por coberturas de afiliados y un tratamiento fiscal estadounidense incierto. Estos valores son adecuados para inversores cómodos con exposición al MSCI Europe, con horizontes de inversión largos y la posibilidad de pérdidas de capital significativas a cambio de un potencial de ganancias apalancadas y protección limitada a la baja.
Morgan Stanley Finance LLC는 Morgan Stanley의 보증을 받아 SX5E Dual Directional Buffered PLUS 노트를 2030년 8월 1일 만기(2025년 7월 28일 가격 책정, CUSIP 61778K7E1)로 판매하고 있습니다. 이 무담보 노트는 EURO STOXX 50 지수(SX5E)에만 연동되며 액면가는 1,000달러입니다. 은행 내부 모델에 따르면 추정 가치는 920.20달러(±55달러)로, 대략 달러당 8센트의 내재 비용이 있음을 나타냅니다.
구조는 양방향입니다: (i) SX5E가 초기 수준 이상으로 마감하면 투자자는 지수의 양수 수익률에 157%~172%의 레버리지 배율(정확한 비율은 가격 책정 시 결정)을 곱한 금액을 받습니다; (ii) SX5E가 초기 수준 이하로 마감하되 15% 이내의 하락일 경우, 투자자는 그 하락에 대해 100% “절대 수익”을 얻어 지수의 완만한 손실을 노트의 이익으로 전환합니다; (iii) 지수가 15% 버퍼를 넘어서 하락하면 원금은 1대1로 노출되어 최대 85% 손실이 발생합니다. 노트는 정기 쿠폰을 지급하지 않으며 상환은 2030년 7월 29일 단일 관측일에만 의존합니다.
주요 위험 요소는 Morgan Stanley에 대한 신용 노출, 상장 또는 보장된 유동성 부재, 발행가보다 낮은 모델 기반 평가, 계열사의 불리한 헤지 영향 가능성, 그리고 미국 세금 처리 불확실성을 포함합니다. 이 증권은 MSCI Europe 노출에 익숙하고 장기 보유 기간을 감수하며 상당한 자본 손실 가능성을 받아들이는 투자자에게 적합하며, 레버리지 상승 잠재력과 제한된 하방 보호를 제공합니다.
Morgan Stanley Finance LLC, garantie par Morgan Stanley, commercialise des notes SX5E Dual Directional Buffered PLUS arrivant à échéance le 1er août 2030 (prix au 28 juillet 2025, CUSIP 61778K7E1). Ces notes non sécurisées sont uniquement liées à l'indice EURO STOXX 50 (SX5E) et ont une valeur nominale de 1 000 $. Les modèles internes de la banque estiment une valeur approximative de 920,20 $ (±55 $), indiquant un coût implicite d'environ 8 cents par dollar.
La structure est bidirectionnelle : (i) si le SX5E termine au-dessus du niveau initial, les investisseurs reçoivent le rendement positif de l’indice multiplié par un facteur de levier compris entre 157 % et 172 % (taux exact fixé lors de la tarification) ; (ii) si le SX5E termine en dessous du niveau initial mais avec une baisse n’excédant pas 15 %, les investisseurs perçoivent un rendement absolu de 100 % sur cette baisse, transformant une perte modérée de l’indice en gain sur la note ; (iii) si l’indice chute au-delà de la marge de 15 %, le capital est exposé un pour un, entraînant une perte maximale de 85 %. La note ne verse aucun coupon périodique et le remboursement dépend exclusivement de la date unique d’observation du 29 juillet 2030.
Les principaux risques soulignés incluent l'exposition au crédit de Morgan Stanley, l’absence de cotation en bourse ou de liquidité garantie, une valorisation basée sur des modèles inférieure au prix d’émission, des impacts potentiellement défavorables des couvertures par des affiliés, ainsi qu’un traitement fiscal américain incertain. Ces titres conviennent aux investisseurs à l’aise avec une exposition MSCI Europe, des horizons d’investissement longs et la possibilité de pertes en capital importantes en échange d’un potentiel de gain à effet de levier et d’une protection limitée à la baisse.
Morgan Stanley Finance LLC, garantiert von Morgan Stanley, vermarktet SX5E Dual Directional Buffered PLUS-Notes mit Fälligkeit am 1. August 2030 (Preisfeststellung am 28. Juli 2025, CUSIP 61778K7E1). Die unbesicherten Notes sind ausschließlich an den EURO STOXX 50 Index (SX5E) gekoppelt und haben einen Nennwert von 1.000 USD. Die internen Modelle der Bank schätzen den ungefähren Wert auf 920,20 USD (±55 USD), was auf einen eingebetteten Kostenabschlag von etwa 8 Cent pro Dollar hinweist.
Die Struktur ist bidirektional: (i) endet der SX5E über dem Anfangswert, erhalten Anleger die positive Indexrendite multipliziert mit einem Hebelfaktor von 157 % bis 172 % (genauer Satz bei Preisfeststellung festgelegt); (ii) endet der SX5E unter dem Anfangswert, aber nicht mehr als 15 % darunter, erzielen Anleger eine 100 % „Absolute Rendite“ auf diesen Rückgang, wodurch ein moderater Indexverlust in einen Gewinn der Note umgewandelt wird; (iii) fällt der Index über die 15 %-Pufferzone hinaus, ist das Kapital eins-zu-eins exponiert, was einen maximalen Verlust von 85 % bedeutet. Die Note zahlt keine periodischen Kupons, und die Rückzahlung hängt ausschließlich vom einzigen Beobachtungstag am 29. Juli 2030 ab.
Wesentliche Risiken umfassen die Kreditexponierung gegenüber Morgan Stanley, das Fehlen einer Börsennotierung oder garantierter Liquidität, eine modellbasierte Bewertung, die unter dem Ausgabepreis liegt, potenzielle negative Absicherungseffekte durch verbundene Unternehmen sowie eine unsichere US-Steuerbehandlung. Die Wertpapiere eignen sich für Anleger, die mit einer MSCI Europe-Exponierung vertraut sind, langfristige Haltedauern akzeptieren und die Möglichkeit erheblicher Kapitalverluste im Tausch für gehebelte Aufwärtspotenziale und begrenzten Abwärtsschutz in Kauf nehmen.
Free Writing Prospectus to Preliminary Pricing Supplement No. 9,023
Registration Statement Nos. 333-275587; 333-275587-01
Dated July 1, 2025; Filed pursuant to Rule 433
Morgan Stanley
SX5E Dual Directional Buffered 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.
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Terms |
|
|
Issuer: |
Morgan Stanley Finance LLC |
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Guarantor: |
Morgan Stanley |
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Underlier: |
EURO STOXX 50® Index (SX5E) |
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Leverage factor: |
157% to 172% |
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Absolute return participation rate: |
100% |
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Buffer amount: |
15% (85% maximum loss)1 |
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Pricing date: |
July 28, 2025 |
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Observation date: |
July 29, 2030 |
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Maturity date: |
August 1, 2030 |
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CUSIP: |
61778K7E1 |
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Estimated value: |
$920.20 per security, or within $55.00 of that estimate |
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Preliminary pricing supplement: |
https://www.sec.gov/Archives/edgar/data/895421/000183988225035573/ms9023_424b2-19338.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% |
$1,942.00* |
|
40.00% |
$1,628.00* |
|
20.00% |
$1,314.00* |
|
0.00% |
$1,000.00 |
|
-10.00% |
$1,100.00 |
|
-15.00% |
$1,150.00 |
|
-16.00% |
$990.00 |
|
-20.00% |
$950.00 |
|
-40.00% |
$750.00 |
|
-60.00% |
$550.00 |
|
-80.00% |
$350.00 |
|
-100.00% |
$150.00 |
*Assumes a leverage factor of 157%
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 provide for only the minimum payment at maturity 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 leverage does the Morgan Stanley (MS) SX5E Buffered PLUS provide?
How does the 15% buffer work on the Morgan Stanley Dual Directional note?
What is the estimated value versus the $1,000 issue price?
Does the SX5E Buffered PLUS pay interest during its term?
When is the maturity date and observation date for these notes?
Are the notes exchange-listed or easily tradable?
