Morgan Stanley Finance LLC
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June
2019
Preliminary
Terms No. 2,060
Registration
Statement Nos. 333-221595; 333-221595-01
Dated
May 30, 2019
Filed
pursuant to Rule 433
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Structured Investments
Opportunities
in U.S. Equities
Dual Directional Buffered Participation Securities
Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Fully and Unconditionally Guaranteed by Morgan
Stanley
Principal at Risk
Securities
The Dual Directional Buffered Participation
Securities (the “securities”) are unsecured obligations of Morgan Stanley Finance LLC (“MSFL”) and are
fully and unconditionally guaranteed by Morgan Stanley. The securities will pay no interest, do not guarantee any return of principal
at maturity and have the terms described in the accompanying product supplement for Participation Securities, index supplement
and prospectus, as supplemented or modified by this document. At maturity, if the Dow Jones Industrial Average
SM
, which
we refer to as the underlying index,
has appreciated
in value, you will receive for each security that you hold at maturity
the stated principal amount of $10 plus a return reflecting 100% of the upside performance of the underlying index, subject to
the maximum upside payment at maturity. If the underlying index has
depreciated
in value but by no more than 10%, you will
receive the stated principal amount of your investment plus a positive return equal to 100% of the absolute value of the percentage
decline, which will effectively be limited to a positive return of 10%. However, if the underlying index has
depreciated
by more than 10%, you will lose 1% of the stated principal amount for every 1% decline beyond the specified buffer amount, subject
to the minimum payment at maturity of 10% of the stated principal amount. Investors may lose up to 90% of the stated principal
amount of the securities. The securities are for investors who seek an equity index-based return and who are willing to risk their
principal and forgo current income and upside returns above the maximum upside payment at maturity in exchange for the absolute
return and buffer features that in each case apply to a limited range of performance of the underlying index.
Investors may
lose up to 90% of the stated principal amount of the securities.
The securities are notes issued as part of MSFL’s Series
A Global Medium-Term Notes program. The securities differ from the Participation Securities described in the accompanying product
supplement for Participation Securities in that the securities offer the potential for a positive return at maturity if the underlying
index depreciates by up to 10%.
All payments are subject to
our credit risk. If we default on our obligations, you could lose some or all of your investment. These securities are not secured
obligations and you will not have any security interest in, or otherwise have any access to, any underlying reference asset or
assets.
SUMMARY TERMS
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Issuer:
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Morgan Stanley
Finance LLC
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Guarantor:
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Morgan Stanley
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Maturity
date:
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January 5, 2021
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Valuation
date:
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December 30, 2020, subject to postponement for
non-index business days and certain market disruption events
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Underlying
index:
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Dow Jones Industrial Average
SM
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Aggregate
principal amount:
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$
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Payment at maturity:
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·
If the final index value is
greater than or equal to
the initial
index value:
$10 + ($10
× index percent change), subject to the maximum upside payment at maturity
·
If the final index value is
less than
the initial index value but has decreased
from the initial index value by an amount
less than or equal to
the buffer amount of 10%:
$10 + ($10
x absolute index return)
In this
scenario, you will receive a 1% positive return on the securities for each 1% negative return on the underlying index.
In no event will this amount exceed the stated principal amount plus $1.00.
·
If the final index value is
less than
the initial index value and has decreased
from the initial index value by an amount
greater than
the buffer amount of 10%:
$10 + [$10
x (index percent change + 10%)]
Under these
circumstances, the payment at maturity will be less than the stated principal amount of $10. However, under no circumstances
will the securities pay less than $1 per security at maturity.
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Maximum
upside payment at maturity:
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$11.10 per security (111.00% of the stated principal
amount)
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Index
percent change:
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(final index value –
initial index value) / initial index value
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Absolute
index return:
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The absolute value of the index percent change.
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Initial
index value:
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, which is the index closing value on the pricing
date
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Final
index value:
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The index closing value on the valuation date
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Buffer
amount:
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10%. As a result of the buffer amount
of 10%, the value at or above which the underlying index must close on the valuation date so that investors do not suffer
a loss on their initial investment in the securities , which is 90% of the initial
index value.
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Stated
principal amount / Issue price:
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$10 per security
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Minimum
payment at maturity:
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$1 per security (10% of the stated principal amount)
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Pricing
date:
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June 14, 2019
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Original
issue date:
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June 19, 2019 (3 business days after the pricing
date)
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CUSIP
/ ISIN:
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61768Y661 / US61768Y6611
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Listing:
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The securities will not be listed on any securities
exchange.
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Agent:
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Morgan Stanley & Co. LLC (“MS &
Co.”), an affiliate of MSFL and a wholly owned subsidiary of Morgan Stanley. See “Supplemental information
regarding plan of distribution; conflicts of interest.”
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Estimated
value on the pricing date:
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Approximately $9.639 per security, or within $0.15
of that estimate. See “Investment Summary” on page 2.
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Commissions
and issue price:
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Price
to public
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Agent’s
commissions and fees
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Proceeds to
us
(3)
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Per
security
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$10
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$0.20
(1)
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|
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$0.05
(2)
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$9.75
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Total
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$
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$
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$
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(1)
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Selected dealers, including
Morgan Stanley Wealth Management (an affiliate of the agent), and their financial advisors will collectively receive from the
agent, MS & Co., a fixed sales commission of $0.20 for each security they sell. See “Supplemental information regarding
plan of distribution; conflicts of interest.” For additional information, see “Plan of Distribution (Conflicts of
Interest)” in the accompanying product supplement for Participation Securities.
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(2)
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Reflects a structuring
fee payable to Morgan Stanley Wealth Management by the agent or its affiliates of $0.05 for each security.
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(3)
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See “Use of proceeds
and hedging” on page 14.
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The securities involve risks
not associated with an investment in ordinary debt securities. See “Risk Factors” beginning on page 6.
The Securities and Exchange
Commission and state securities regulators have not approved or disapproved these securities, or determined if this document or
the accompanying product supplement, index supplement and prospectus is truthful or complete. Any representation to the contrary
is a criminal offense.
The securities are not deposits
or savings accounts and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency or instrumentality,
nor are they obligations of, or guaranteed by, a bank.
You should read this document
together with the related product supplement, index supplement and prospectus, each of which can be accessed via the hyperlinks
below. Please also see “Additional Terms of the Securities” and “Additional Information About the Securities”
at the end of this document.
References to “we,”
“us” and “our” refer to Morgan Stanley or MSFL, or Morgan Stanley and MSFL collectively, as the context
requires.
Product
Supplement for Participation Securities dated November 16, 2017
Index
Supplement dated November 16, 2017
Prospectus
dated November 16, 2017
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
Investment Summary
Dual Directional Buffered Participation
Securities
The Dual Directional Buffered Participation Securities Based
on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021 (the “securities”) can be used:
§
To achieve similar levels of upside exposure to the underlying index as a direct investment,
subject to the maximum upside payment at maturity
§
To obtain a positive return equal to 100% of the absolute index return for a limited range
of negative performance of the underlying index.
§
To obtain a buffer against a specified level of negative performance in the underlying index
§
To potentially outperform the underlying index in a moderately bearish scenario.
Maturity:
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Approximately 1.5 years
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Maximum
upside payment at maturity:
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$11.10 per security (111.00% of the stated principal amount)
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Minimum
payment at maturity:
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$1 per security (10% of the stated principal amount). Investors may lose up to 90% of the stated principal amount of the securities.
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Buffer
amount:
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10%, with 1-to-1 downside exposure below the buffer
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Coupon:
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None
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Listing:
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The securities will not be listed on any securities exchange
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All payments on the securities are subject to our credit risk.
The original issue price of each security is $10. This price
includes costs associated with issuing, selling, structuring and hedging the securities, which are borne by you, and, consequently,
the estimated value of the securities on the pricing date will be less than $10. We estimate that the value of each security on
the pricing date will be approximately $9.639, or within $0.15 of that estimate. Our estimate of the value of the securities as
determined on the pricing date will be set forth in the final pricing supplement.
What goes into the estimated value on the pricing date?
In valuing the securities on the pricing date, we take into account
that the securities comprise both a debt component and a performance-based component linked to the underlying index. The estimated
value of the securities is determined using our own pricing and valuation models, market inputs and assumptions relating to the
underlying index, instruments based on the underlying index, volatility and other factors including current and expected interest
rates, as well as an interest rate related to our secondary market credit spread, which is the implied interest rate at which our
conventional fixed rate debt trades in the secondary market.
What determines the economic terms of the securities?
In determining the economic terms of the securities, including
the maximum upside payment at maturity, the buffer amount and the minimum payment at maturity, we use an internal funding rate,
which is likely to be lower than our secondary market credit spreads and therefore advantageous to us. If the issuing, selling,
structuring and hedging costs borne by you were lower or if the internal funding rate were higher, one or more of the economic
terms of the securities would be more favorable to you.
What is the relationship between the estimated value on the
pricing date and the secondary market price of the securities?
The price at which MS & Co. purchases the securities in the
secondary market, absent changes in market conditions, including those related to the underlying index, may vary from, and be lower
than, the estimated value on the pricing date, because the secondary market price takes into account our secondary market credit
spread as well as the bid-offer spread that MS & Co. would charge in a secondary market transaction of this type and other
factors. However, because the costs associated with issuing, selling, structuring and hedging the securities are not fully deducted
upon issuance, for a period of up to 6 months following the issue date, to the extent that MS & Co. may buy or sell the securities
in the secondary market, absent changes in market conditions, including those related to the underlying index, and to our secondary
market credit spreads, it would do so based on values higher than the estimated value. We expect that those higher values will
also be reflected in your brokerage account statements.
MS & Co. may, but is not obligated to, make a market in the
securities, and, if it once chooses to make a market, may cease doing so at any time.
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
Key Investment Rationale
The securities offer the potential for a positive return at maturity
equal to 100% of the absolute value of a limited range of the percentage change of the underlying index. At maturity, if the underlying
index
has appreciated
in value, investors will receive the stated principal amount of their investment plus a return reflecting
100% of the index percent increase, subject to the maximum upside payment at maturity. If the underlying index has
depreciated
in value but by no more than 10%, investors will receive the stated principal amount of their investment plus a positive return
equal to 100% of the absolute value of the percentage decline, which will effectively be limited to a positive return of 10%. However,
if the underlying index has
depreciated
by more than 10%, investors will lose 1% of the stated principal amount for every
1% decline beyond the specified buffer amount, subject to the minimum payment at maturity.
Investors may lose up to 90% of the
stated principal amount of the securities.
All payments on the securities are subject to our credit risk.
Absolute Return Feature
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The securities enable investors to obtain a positive return if the final index value is less than the initial index value
but
has decreased from the initial index value by an amount less than or equal to the buffer amount.
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Upside Scenario if the Underlying Index Appreciates
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The final index value is greater than the initial index value. In this case, you receive for each security that you hold $10
plus
a return reflecting 100% of the index percent increase, subject to the maximum upside payment at maturity of $11.10 per security (111.00% of the stated principal amount).
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Absolute Return Scenario
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The final index value is less than the initial index value but has decreased from the initial index value by an amount less than or equal to the buffer amount, which is 10%. In this case, you receive a 1% positive return on the securities for each 1% negative return on the underlying index. For example, if the final index value is 5% less than the initial index value, the securities will provide a positive return of 5% at maturity. The maximum return you may receive in this scenario is a positive 10% return at maturity.
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Downside Scenario
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The underlying index declines in value by more than 10%, and at maturity, the securities redeem for less than the stated principal amount by an amount that is proportionate to the percentage decrease of the underlying index from the initial index value, plus the buffer amount of 10%. For example, if the final index value is 50% less than the initial index value, the securities will be redeemed at maturity for $6, or 60% of the stated principal amount. The minimum payment at maturity is $1 per security.
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Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
How the Securities Work
Payoff Diagram
The payoff diagram below illustrates the payment at maturity
on the securities based on the following terms:
Stated
principal amount:
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$10 per security
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Maximum upside
payment at maturity:
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$11.10 per security (111.00% of the stated principal amount)
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Buffer amount:
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10%
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Minimum payment
at maturity:
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$1 per security
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Dual
Directional Buffered Participation Securities Payoff Diagram
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See the next page for a description of how the securities work.
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
How it works
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§
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Upside Scenario if the Underlying Index Appreciates.
Under the terms of the securities,
if the final index value is greater than the initial index value, the investor would receive the $10 stated principal amount
plus
a return reflecting 100% of the appreciation of the underlying index over the term of the securities, subject to the maximum
upside payment at maturity.
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|
§
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If the underlying index appreciates 10%, the investor would receive a 10% return, or $11.00 per security.
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|
§
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If the underlying index appreciates 45%, the investor
would receive only an 11.00% return, or $11.10 per security.
|
|
§
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Absolute Return Scenario.
If the final index value is less than the initial index
value and has decreased from the initial index value by an amount less than or equal to the buffer amount of 10%, the investor
would receive a 1% positive return on the securities for each 1% negative return on the underlying index.
|
|
§
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If the underlying index depreciates 5%, the investor
would receive a 5% return, or $10.50 per security.
|
|
§
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The maximum return you may receive in this scenario
is a positive 10% return at maturity.
|
|
§
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Downside Scenario.
If the final index value is less than the initial index value
and has decreased from the initial index value by an amount greater than the buffer amount of 10%, investors will receive an amount
that is less than the stated principal amount by an amount that is proportionate to the percentage decrease in the value of the
underlying index from the initial index value, plus the buffer amount of 10%. The minimum payment at maturity is $1 per security.
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|
§
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If the underlying index depreciates 50%, the investor would lose 40% of the investor’s principal and receive only $6
per security at maturity, or 60% of the stated principal amount.
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Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
Risk Factors
The following is a non-exhaustive list of certain key risk
factors for investors in the securities. For further discussion of these and other risks, you should read the section entitled
“Risk Factors” in the accompanying product supplement for participation securities, index supplement and prospectus.
We also urge you to consult your investment, legal, tax, accounting and other advisers in connection with your investment in the
securities.
|
§
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The securities do not pay interest and provide a minimum payment at maturity of only 10% of your principal.
The terms
of the securities differ from those of ordinary debt securities in that the securities do not pay interest, and the securities
provide a minimum payment at maturity of only 10% of the stated principal amount of the securities, subject to our credit risk.
If the final index value is less than 90% of the initial index value, you will receive for each security that you hold a payment
at maturity that is less than the stated principal amount of each security by an amount proportionate to the decline in the closing
value of the underlying index from the initial index value, plus $1 per security.
Accordingly, investors may lose up to 90%
of the stated principal amount of the securities.
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|
§
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The appreciation potential is fixed and limited.
Where the final index value
is greater than the initial index value, the appreciation potential of the securities is limited by the maximum upside payment
at maturity of $11.10 per security (111.00% of the stated principal amount), even if the final index value is significantly greater
than the initial index value. Additionally, the positive return you can potentially receive if the underlying index depreciates
is limited due to the buffer amount. If the index declines over the term of the securities by an amount greater than the buffer
amount, you will lose some of your investment. See “How the Securities Work” on page 5 above.
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|
§
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The market price of the securities may be influenced by many unpredictable factors
. Several factors, many of which are
beyond our control, will influence the value of the securities in the secondary market and the price at which MS & Co. may
be willing to purchase or sell the securities in the secondary market, including:
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|
§
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the value of the underlying index at any time,
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|
§
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the volatility (frequency and magnitude of changes
in value) of the underlying index,
|
|
§
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dividend rates on the securities underlying the underlying
index,
|
|
§
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interest and yield rates in the market,
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|
§
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geopolitical conditions and economic, financial, political,
regulatory or judicial events that affect the component stocks of the underlying index or securities markets generally and which
may affect the value of the underlying index,
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|
§
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the time remaining until the maturity of the securities,
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|
§
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the composition of the underlying index and changes
in the constituent stocks of the underlying index, and
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|
§
|
any actual or anticipated changes in our credit ratings
or credit spreads.
|
Some or all of these factors will
influence the price you will receive if you sell your securities prior to maturity. For example, you may have to sell your securities
at a substantial discount from the stated principal amount if at the time of sale the value of the underlying index is at or below
the initial index value and especially if it has declined by an amount greater than the buffer amount.
You cannot predict the future performance
of the underlying index based on its historical performance. If the final index value has declined by an amount greater than the
buffer amount of 10% from the initial index value, you will receive for each security that you hold a payment at maturity that
is less than the stated principal amount of each security by an amount proportionate to the decline in the value of the underlying
index from the initial index value, plus $1 per security.
|
§
|
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
. You are dependent on our ability to pay all amounts due on the securities
at maturity and therefore you are subject to our credit risk. If we default on our obligations under the securities, your investment
would be at risk and you could lose some or all of your
|
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
investment. As a result, the market
value of the securities prior to maturity will be affected by changes in the market’s view of our creditworthiness. Any actual
or anticipated decline in our credit ratings or increase in the credit spreads charged by the market for taking our credit risk
is likely to adversely affect the market value of the securities.
|
§
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As a finance subsidiary, MSFL has no independent operations and will have no independent assets.
As a finance subsidiary,
MSFL has no independent operations beyond the issuance and administration of its securities and will have no independent assets
available for distributions to holders of MSFL securities if they make claims in respect of such securities in a bankruptcy, resolution
or similar proceeding. Accordingly, any recoveries by such holders will be limited to those available under the related guarantee
by Morgan Stanley and that guarantee will rank
pari passu
with all other unsecured, unsubordinated obligations of Morgan
Stanley. Holders will have recourse only to a single claim against Morgan Stanley and its assets under the guarantee. Holders of
securities issued by MSFL should accordingly assume that in any such proceedings they would not have any priority over and should
be treated
pari passu
with the claims of other unsecured, unsubordinated creditors of Morgan Stanley, including holders
of Morgan Stanley-issued securities.
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|
§
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The amount payable on the securities is not linked to the value of the underlying index at any time other than the valuation
date.
The final index value will be the index closing value on the valuation date, subject to postponement for non-index business
days and certain market disruption events. Even if the value of the underlying index appreciates prior to the valuation date but
then drops by the valuation date by an amount greater than the buffer amount, the payment at maturity will be significantly less
than it would have been had the payment at maturity been linked to the value of the underlying index prior to such drop. Although
the actual value of the underlying index on the stated maturity date or at other times during the term of the securities may be
higher than the final index value, the payment at maturity will be based solely on the index closing value on the valuation date.
|
|
§
|
Investing in the securities is not equivalent to investing in the underlying index.
Investing
in the securities is not equivalent to investing in the underlying index or its component stocks. Investors in the securities will
not have voting rights or rights to receive dividends or other distributions or any other rights with respect to the stocks that
constitute the underlying index.
|
|
§
|
Adjustments to the underlying index could adversely
affect the value of the securities.
The underlying index publisher may add, delete or substitute
the stocks constituting the underlying index or make other methodological changes that could change the value of the underlying
index.
The underlying index publisher may discontinue or suspend calculation or publication of the
underlying
index
at any time. In these circumstances, the calculation agent will have the sole discretion to substitute a successor
index that is comparable to the discontinued
underlying index
and will be permitted to
consider indices that are calculated and published by the calculation agent or any of its affiliates.
|
|
§
|
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.
Assuming no change in market conditions or any other relevant factors, the prices, if any, at which dealers, including
MS & Co., may be willing to purchase the securities in secondary market transactions will likely be significantly lower than
the original issue price, because secondary market prices will exclude the issuing, selling, structuring and hedging-related costs
that are included in the original issue price and borne by you and because the secondary market prices will reflect our secondary
market credit spreads and the bid-offer spread that any dealer would charge in a secondary market transaction of this type as well
as other factors.
|
The inclusion of the costs of issuing,
selling, structuring and hedging the securities in the original issue price and the lower rate we are willing to pay as issuer
make the economic terms of the securities less favorable to you than they otherwise would be.
However, because the costs associated
with issuing, selling, structuring and hedging the securities are not fully deducted upon issuance, for a period of up to 6 months
following the issue date, to the extent that MS & Co. may buy or sell the securities in the secondary market, absent changes
in market conditions, including those related to the underlying index, and to our secondary market credit spreads, it would do
so based on values higher than the estimated value, and we expect that those higher values will also be reflected in your brokerage
account statements.
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
|
§
|
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.
These pricing and valuation models are proprietary
and rely in part on subjective views of certain market inputs and certain assumptions about future events, which may prove to be
incorrect. As a result, because there is no market-standard way to value these types of securities, our models may yield a higher
estimated value of the securities than those generated by others, including other dealers in the market, if they attempted to value
the securities. In addition, the estimated value on the pricing date does not represent a minimum or maximum price at which dealers,
including MS & Co., would be willing to purchase your securities in the secondary market (if any exists) at any time. The value
of your securities at any time after the date of this document will vary based on many factors that cannot be predicted with accuracy,
including our creditworthiness and changes in market conditions. See also “The market price of the securities may be influenced
by many unpredictable factors” above.
|
|
§
|
The securities will not be listed on any securities exchange and secondary trading may be limited
. The securities will
not be listed on any securities exchange. Therefore, there may be little or no secondary market for the securities. Morgan Stanley
& Co. LLC, which we refer to as MS & Co., may, but is not obligated to, make a market in the securities and, if it once
chooses to make a market, may cease doing so at any time. When it does make a market, it will generally do so for transactions
of routine secondary market size at prices based on its estimate of the current value of the securities, taking into account its
bid/offer spread, our credit spreads, market volatility, the notional size of the proposed sale, the cost of unwinding any related
hedging positions, the time remaining to maturity and the likelihood that it will be able to resell the securities. Even if there
is a secondary market, it may not provide enough liquidity to allow you to trade or sell the securities easily. Since other broker-dealers
may not participate significantly in the secondary market for the securities, the price at which you may be able to trade your
securities is likely to depend on the price, if any, at which MS & Co. is willing to transact. If, at any time, MS & Co.
were to cease making a market in the securities, it is likely that there would be no secondary market for the securities. Accordingly,
you should be willing to hold your securities to maturity.
|
|
§
|
The calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL, will make determinations with respect
to the securities.
As calculation agent, MS & Co. will determine the initial index value and the final index
value and will calculate the amount of cash you receive at maturity. Moreover, certain determinations made by MS &
Co., in its capacity as calculation agent, may require it to exercise discretion and make subjective judgments, such as with respect
to the occurrence or non-occurrence of market disruption events and the selection of a successor index or calculation of the final
index value in the event of a market disruption event or discontinuance of the underlying index. These potentially subjective
determinations may adversely affect the payout to you at maturity. For further information regarding these types of
determinations, see “Description of Securities—Postponement of Valuation Date(s),” “—Discontinuance
of Any Underlying Index or Basket Index; Alteration of Method of Calculation,” “—Alternate Exchange Calculation
in case of an Event of Default” and “—Calculation Agent and Calculations” in the accompanying product supplement. In
addition, MS & Co. has determined the estimated value of the securities on the pricing date.
|
|
§
|
Hedging and trading activity by our affiliates could potentially adversely affect the value of the securities
. One or
more of our affiliates and/or third-party dealers expect to carry out hedging activities related to the securities (and to other
instruments linked to the underlying index or its component stocks), including trading in the stocks that constitute the underlying
index. As a result, these entities may be unwinding or adjusting hedge positions during the term of the securities, and the hedging
strategy may involve greater and more frequent dynamic adjustments to the hedge as the valuation date approaches. Some of our affiliates
also trade the stocks that constitute the underlying index and other financial instruments related to the underlying index on a
regular basis as part of their general broker-dealer and other businesses. Any of these hedging or trading activities on or prior
to the pricing date could potentially increase the initial index value, and, therefore, could increase the value at or above which
the underlying index must close on the valuation date so that investors do not suffer a loss on their initial investment in the
securities. Additionally, such hedging or trading activities during the term of the securities, including on the valuation date,
could adversely affect the value of the underlying index on the valuation date, and, accordingly, the amount of cash an investor
will receive at maturity.
|
|
§
|
The U.S. federal income tax consequences of an investment in the securities are uncertain
. Please read the discussion
under “Additional Information—Tax considerations” in this document and the discussion under “United States
Federal Taxation” in the accompanying product supplement for participation securities (together, the “Tax Disclosure
Sections”) concerning the U.S. federal income tax consequences of an investment in the securities. If
|
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
the Internal Revenue Service (the
“IRS”) were successful in asserting an alternative treatment, the timing and character of income on the securities
might differ significantly from the tax treatment described in the Tax Disclosure Sections. For example, under one possible treatment,
the IRS could seek to recharacterize the securities as debt instruments. In that event, U.S. Holders would be required to accrue
into income original issue discount on the securities every year at a “comparable yield” determined at the time of
issuance and recognize all income and gain in respect of the securities as ordinary income. Additionally, as discussed under “United
States Federal Taxation—FATCA” in the accompanying product supplement for participation securities, the withholding
rules commonly referred to as “FATCA” would apply to the securities if they were recharacterized as debt instruments.
However, recently proposed regulations (the preamble to which specifies that taxpayers are permitted to rely on them pending finalization)
eliminate the withholding requirement on payments of gross proceeds of a taxable disposition. The risk that financial instruments
providing for buffers, triggers or similar downside protection features, such as the securities, would be recharacterized as debt
is greater than the risk of recharacterization for comparable financial instruments that do not have such features. We do not plan
to request a ruling from the IRS regarding the tax treatment of the securities, and the IRS or a court may not agree with the tax
treatment described in the Tax Disclosure Sections.
In 2007, the U.S. Treasury Department
and the IRS released a notice requesting comments on the U.S. federal income tax treatment of “prepaid forward contracts”
and similar instruments. The notice focuses in particular on whether to require holders of these instruments to accrue income over
the term of their investment. It also asks for comments on a number of related topics, including the character of income or loss
with respect to these instruments; whether short-term instruments should be subject to any such accrual regime; the relevance of
factors such as the exchange-traded status of the instruments and the nature of the underlying property to which the instruments
are linked; the degree, if any, to which income (including any mandated accruals) realized by non-U.S. investors should be subject
to withholding tax; and whether these instruments are or should be subject to the “constructive ownership” rule, which
very generally can operate to recharacterize certain long-term capital gain as ordinary income and impose an interest charge. While
the notice requests comments on appropriate transition rules and effective dates, any Treasury regulations or other guidance promulgated
after consideration of these issues could materially and adversely affect the tax consequences of an investment in the securities,
possibly with retroactive effect. Both U.S. and Non-U.S. Holders should consult their tax advisers regarding the U.S. federal income
tax consequences of an investment in the securities, including possible alternative treatments, the issues presented by this notice
and any tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
Dow Jones Industrial Average
SM
Overview
The Dow Jones Industrial
Average
SM
is a price-weighted index composed of 30 common stocks that is published by S&P Dow Jones Indices LLC,
the marketing name and a licensed trademark of CME Group Inc., as representative of the broad market of U.S. industry. For additional
information about the Dow Jones Industrial Average
SM
, see the information set forth under “Dow Jones Industrial
Average
SM
” in the accompanying index supplement.
Information as of market close on May 28, 2019:
Bloomberg Ticker Symbol:
|
INDU
|
52 Week High (on 10/3/2018):
|
26,828.39
|
Current Index Value:
|
25,347.77
|
52 Week Low (on 12/24/2018):
|
21,792.20
|
52 Weeks Ago:
|
24,361.45
|
|
|
The following graph sets forth the daily closing values of the
underlying index for the period from January 1, 2014 through May 28, 2019. The related table sets forth the published high and
low closing values, as well as end-of-quarter closing values, of the underlying index for each quarter in the same period. The
closing value of the underlying index on May 28, 2019 was 25,347.77. We obtained the information in the table and graph below from
Bloomberg Financial Markets, without independent verification. The underlying index has at times experienced periods of high volatility,
and you should not take the historical values of the underlying index as an indication of its future performance.
Dow Jones Industrial
Average
SM
Daily Index Closing
Values
January
1, 2014
to May 28, 2019
|
|
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
Dow Jones Industrial Average
SM
|
High
|
Low
|
Period End
|
2014
|
|
|
|
First Quarter
|
16,530.94
|
15,372.80
|
16,457.66
|
Second Quarter
|
16,947.08
|
16,026.75
|
16,826.60
|
Third Quarter
|
17,279.74
|
16,368.27
|
17,042.90
|
Fourth Quarter
|
18,053.71
|
16,117.24
|
17,823.07
|
2015
|
|
|
|
First Quarter
|
18,288.63
|
17,164.95
|
17,776.12
|
Second Quarter
|
18,312.39
|
17,596.35
|
17,619.51
|
Third Quarter
|
18,120.25
|
15,666.44
|
16,284.70
|
Fourth Quarter
|
17,918.15
|
16,272.01
|
17,425.03
|
2016
|
|
|
|
First Quarter
|
17,716.66
|
15,660.18
|
17,685.09
|
Second Quarter
|
18,096.27
|
17,140.24
|
17,929.99
|
Third Quarter
|
18,636.05
|
17,840.62
|
18,308.15
|
Fourth Quarter
|
19,974.62
|
17,888.28
|
19,762.60
|
2017
|
|
|
|
First Quarter
|
21,115.55
|
19,732.40
|
20,663.22
|
Second Quarter
|
21,528.99
|
20,404.49
|
21,349.63
|
Third Quarter
|
22,412.59
|
21,320.04
|
22,405.09
|
Fourth Quarter
|
24,837.51
|
22,557.60
|
24,719.22
|
2018
|
|
|
|
First Quarter
|
26,616.71
|
23,533.20
|
24,103.11
|
Second Quarter
|
25,322.31
|
23,644.19
|
24,271.41
|
Third Quarter
|
26,743.50
|
24,174.82
|
26,458.31
|
Fourth Quarter
|
26,828.39
|
21,792.20
|
23,327.46
|
2019
|
|
|
|
First Quarter
|
26,091.95
|
22,686.22
|
25,928.68
|
Second Quarter (through May 28, 2019)
|
26,656.39
|
25,324.99
|
25,347.77
|
“Dow Jones,”
“Dow Jones Industrial Average,” “Dow Jones Indexes” and “DJIA” are service marks of Dow Jones
Trademark Holdings LLC. See “Dow Jones Industrial Average
SM
” in the accompanying index supplement.
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
Additional Terms of the Securities
Please read this information
in conjunction with the summary terms on the front cover of this document.
Additional Terms:
|
|
If
the terms described herein are inconsistent with those described in the accompanying product supplement, index supplement
or prospectus, the terms described herein shall control.
|
Underlying index publisher:
|
S&P Dow Jones Indices LLC or any successor thereof
|
Postponement of maturity date:
|
If, due to a market disruption event or otherwise, the valuation date is postponed so that it falls less than two business days prior to the scheduled maturity date, the maturity date will be postponed to the second business day following the valuation date as postponed.
|
Denominations:
|
$10 per security and integral multiples thereof
|
Trustee:
|
The Bank of New York Mellon
|
Calculation agent:
|
MS & Co.
|
Issuer notice to registered security holders, the trustee and the depositary:
|
In the event that the maturity date is postponed due to postponement
of the valuation date, the issuer shall give notice of such postponement and, once it has been determined, of the date to which
the maturity date has been rescheduled (i) to each registered holder of the securities by mailing notice of such postponement by
first class mail, postage prepaid, to such registered holder’s last address as it shall appear upon the registry books, (ii)
to the trustee by facsimile confirmed by mailing such notice to the trustee by first class mail, postage prepaid, at its New York
office and (iii) to The Depository Trust Company (the “depositary”) by telephone or facsimile, confirmed by mailing
such notice to the depositary by first class mail, postage prepaid. Any notice that is mailed to a registered holder of the securities
in the manner herein provided shall be conclusively presumed to have been duly given to such registered holder, whether or not
such registered holder receives the notice. The issuer shall give such notice as promptly as possible, and in no case later than
(i) with respect to notice of postponement of the maturity date, the business day immediately preceding the scheduled maturity
date and (ii) with respect to notice of the date to which the maturity date has been rescheduled, the business day immediately
following the actual valuation date for determining the final index value.
The issuer shall, or shall cause the calculation agent to, (i)
provide written notice to the trustee, on which notice the trustee may conclusively rely, and to the depositary of the amount of
cash to be delivered, if any, with respect to the securities, on or prior to 10:30 a.m. (New York City time) on the business day
preceding the maturity date, and (ii) deliver the aggregate cash amount due, if any, to the trustee for delivery to the depositary,
as holder of the securities, on the maturity date.
|
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
Additional Information About the Securities
Additional Information:
|
|
Minimum
ticketing size:
|
$1,000 / 100 securities
|
Tax
considerations:
|
Although there is uncertainty
regarding the U.S. federal income tax consequences of an investment in the securities due to the lack of governing authority, in
the opinion of our counsel, Davis Polk & Wardwell LLP, under current law, and based on current market conditions, a security
should be treated as a single financial contract that is an “open transaction” for U.S. federal income tax purposes.
However, because our counsel’s opinion is based in part on market conditions as of the date of this document, it is subject
to confirmation on the pricing date.
Assuming this treatment
of the securities is respected and subject to the discussion in “United States Federal Taxation” in the accompanying
product supplement for participation securities, the following U.S. federal income tax consequences should result based on current
law:
§
A
U.S. Holder should not be required to recognize taxable income over the term of the securities prior to settlement, other than
pursuant to a sale or exchange.
§
Upon
sale, exchange or settlement of the securities, a U.S. Holder should recognize gain or loss equal to the difference between the
amount realized and the U.S. Holder’s tax basis in the securities. Such gain or loss should be long-term capital gain or
loss if the investor has held the securities for more than one year, and short-term capital gain or loss otherwise.
In 2007,
the U.S. Treasury Department and the Internal Revenue Service (the “IRS”) released a notice requesting comments on
the U.S. federal income tax treatment of “prepaid forward contracts” and similar instruments. The notice focuses in
particular on whether to require holders of these instruments to accrue income over the term of their investment. It also asks
for comments on a number of related topics, including the character of income or loss with respect to these instruments; whether
short-term instruments should be subject to any such accrual regime; the relevance of factors such as the exchange-traded status
of the instruments and the nature of the underlying property to which the instruments are linked; the degree, if any, to which
income (including any mandated accruals) realized by non-U.S. investors should be subject to withholding tax; and whether these
instruments are or should be subject to the “constructive ownership” rule, which very generally can operate to recharacterize
certain long-term capital gain as ordinary income and impose an interest charge. While the notice requests comments on appropriate
transition rules and effective dates, any Treasury regulations or other guidance promulgated after consideration of these issues
could materially and adversely affect the tax consequences of an investment in the securities, possibly with retroactive effect.
As discussed
in the accompanying product supplement for participation securities, Section 871(m) of the Internal Revenue Code of 1986, as amended,
and Treasury regulations promulgated thereunder (“Section 871(m)”) generally impose a 30% (or a lower applicable treaty
rate) withholding tax on dividend equivalents paid or deemed paid to Non-U.S. Holders with respect to certain financial instruments
linked to U.S. equities or indices that include U.S. equities (each, an “Underlying Security”). Subject to certain
exceptions, Section 871(m) generally applies to securities that substantially replicate the economic performance of one or more
Underlying Securities, as determined based on tests set forth in the applicable Treasury regulations (a “Specified Security”).
However, pursuant to an IRS notice, Section 871(m) will not apply to securities issued before January 1, 2021 that do not have
a delta of one with respect to any Underlying Security. Based on the terms of the securities and current market conditions, we
expect that the securities will not have a delta of one with respect to any Underlying Security on the pricing date. However, we
will provide an updated determination in the final pricing supplement. Assuming that the securities do not have a delta of one
with respect to any Underlying Security, our counsel is of the opinion that the securities should not be Specified Securities and,
therefore, should not be subject to Section 871(m).
Our determination
is not binding on the IRS, and the IRS may disagree with this determination. Section 871(m) is complex and its application may
depend on your particular circumstances, including whether you enter into other transactions with respect to an Underlying Security.
If withholding is required, we will not be required to pay any additional amounts with respect to the amounts so withheld. You
should consult your tax adviser regarding the potential application of Section 871(m) to the securities.
Both U.S.
and non-U.S. investors considering an investment in the securities should read the discussion under “Risk Factors”
in this document and the discussion under “United States Federal Taxation” in the accompanying product supplement for
participation securities and consult their tax advisers regarding all aspects of the U.S. federal income tax consequences of an
investment in the securities, including possible alternative treatments, the issues presented by the aforementioned notice and
any tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.
The discussion
in the preceding paragraphs under “Tax considerations” and the discussion
|
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
|
contained in the section entitled “United States Federal Taxation” in the accompanying product supplement for participation securities, insofar as they purport to describe provisions of U.S. federal income tax laws or legal conclusions with respect thereto, constitute the full opinion of Davis Polk & Wardwell LLP regarding the material U.S. federal tax consequences of an investment in the securities.
|
Use
of proceeds and hedging:
|
The proceeds from the sale of the securities will be used by
us for general corporate purposes. We will receive, in aggregate, $10 per security issued, because, when we enter into hedging
transactions in order to meet our obligations under the securities, our hedging counterparty will reimburse the cost of the agent’s
commissions. The costs of the securities borne by you and described on page 2 above comprise the agent’s commissions and
the cost of issuing, structuring and hedging the securities.
On or prior to the pricing date, we will hedge our anticipated
exposure in connection with the securities by entering into hedging transactions with our affiliates and/or third-party dealers.
We expect our hedging counterparties to take positions in the stocks constituting the underlying index, in futures and/or options
contracts on the underlying index or its component stocks listed on major securities markets or positions in any other available
securities or instruments that they may wish to use in connection with such hedging. Such purchase activity could increase the
value of the underlying index on the pricing date, and, therefore, could increase the value at or above which the underlying index
must close on the valuation date so that investors do not suffer a loss on their initial investment in the securities. In addition,
through our affiliates, we are likely to modify our hedge position throughout the term of the securities, including on the valuation
date, by purchasing and selling the stocks constituting the underlying index, futures or options contracts on the underlying index
or its component stocks listed on major securities markets or positions in any other available securities or instruments that we
may wish to use in connection with such hedging activities. As a result, these entities may be unwinding or adjusting hedge positions
during the term of the securities, and the hedging strategy may involve greater and more frequent dynamic adjustments to the hedge
as the valuation date approaches. We cannot give any assurance that our hedging activities will not affect the value of the underlying
index, and, therefore, adversely affect the value of the securities or the payment you will receive at maturity. For further information
on our use of proceeds and hedging, see “Use of Proceeds and Hedging” in the accompanying product supplement.
|
Benefit
plan investor considerations:
|
Each fiduciary of a pension, profit-sharing or other employee
benefit plan subject to Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) (a “Plan”),
should consider the fiduciary standards of ERISA in the context of the Plan’s particular circumstances before authorizing
an investment in the securities. Accordingly, among other factors, the fiduciary should consider whether the investment would satisfy
the prudence and diversification requirements of ERISA and would be consistent with the documents and instruments governing the
Plan.
In addition, we and certain of our affiliates, including MS &
Co., may each be considered a “party in interest” within the meaning of ERISA, or a “disqualified person”
within the meaning of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to many Plans, as well
as many individual retirement accounts and Keogh plans (such accounts and plans, together with other plans, accounts and arrangements
subject to Section 4975 of the Code, also “Plans”). ERISA Section 406 and Code Section 4975 generally prohibit transactions
between Plans and parties in interest or disqualified persons. Prohibited transactions within the meaning of ERISA or the Code
would likely arise, for example, if the securities are acquired by or with the assets of a Plan with respect to which MS &
Co. or any of its affiliates is a service provider or other party in interest, unless the securities are acquired pursuant to an
exemption from the “prohibited transaction” rules. A violation of these “prohibited transaction” rules
could result in an excise tax or other liabilities under ERISA and/or Section 4975 of the Code for those persons, unless exemptive
relief is available under an applicable statutory or administrative exemption.
The U.S. Department of Labor has issued five prohibited transaction
class exemptions (“PTCEs”) that may provide exemptive relief for direct or indirect prohibited transactions resulting
from the purchase or holding of the securities. Those class exemptions are PTCE 96-23 (for certain transactions determined by in-house
asset managers), PTCE 95-60 (for certain transactions involving insurance company general accounts), PTCE 91-38 (for certain transactions
involving bank collective investment funds), PTCE 90-1 (for certain transactions involving insurance company separate accounts)
and PTCE 84-14 (for certain transactions determined by independent qualified professional asset managers). In addition, ERISA Section
408(b)(17) and Code Section 4975(d)(20) of the Code provide an exemption for the purchase and sale of securities and the related
lending transactions, provided that neither the issuer of the securities nor any of its affiliates has or exercises any discretionary
authority or control or renders any investment advice with respect to the assets of the Plan involved in the transaction and provided
further that the Plan pays no more, and receives no less, than “adequate consideration” in connection with the transaction
(the so-called “service provider” exemption). There can be no assurance that any of these class or statutory exemptions
will be available with respect to transactions involving the securities.
Because we may be considered a party in interest with respect
to many Plans, the securities may not be purchased, held or disposed of by any Plan, any entity whose underlying assets include
“plan assets” by reason of any Plan’s investment in the entity (a “Plan Asset Entity”) or any person
investing
|
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
|
“plan assets” of any Plan, unless such purchase,
holding or disposition is eligible for exemptive relief, including relief available under PTCEs 96-23, 95-60, 91-38, 90-1, 84-14
or the service provider exemption or such purchase, holding or disposition is otherwise not prohibited. Any purchaser, including
any fiduciary purchasing on behalf of a Plan, transferee or holder of the securities will be deemed to have represented, in its
corporate and its fiduciary capacity, by its purchase and holding of the securities that either (a) it is not a Plan or a Plan
Asset Entity and is not purchasing such securities on behalf of or with “plan assets” of any Plan or with any assets
of a governmental, non-U.S. or church plan that is subject to any federal, state, local or non-U.S. law that is substantially similar
to the provisions of Section 406 of ERISA or Section 4975 of the Code (“Similar Law”) or (b) its purchase, holding
and disposition of these securities will not constitute or result in a non-exempt prohibited transaction under Section 406 of ERISA
or Section 4975 of the Code or violate any Similar Law.
Due to the complexity of these rules and the penalties that may
be imposed upon persons involved in non-exempt prohibited transactions, it is particularly important that fiduciaries or other
persons considering purchasing the securities on behalf of or with “plan assets” of any Plan consult with their counsel
regarding the availability of exemptive relief.
The securities are contractual financial instruments.
The financial exposure provided by the securities is not a substitute or proxy for, and is not intended as a substitute or proxy
for, individualized investment management or advice for the benefit of any purchaser or holder of the securities. The securities
have not been designed and will not be administered in a manner intended to reflect the individualized needs and objectives of
any purchaser or holder of the securities.
Each purchaser or holder of any securities
acknowledges and agrees that:
(i) the
purchaser or holder or its fiduciary has made and shall make all investment decisions for the purchaser or holder and the purchaser
or holder has not relied and shall not rely in any way upon us or our affiliates to act as a fiduciary or adviser of the purchaser
or holder with respect to (A) the design and terms of the securities, (B) the purchaser or holder’s investment in the securities,
or (C) the exercise of or failure to exercise any rights we have under or with respect to the securities;
(ii) we
and our affiliates have acted and will act solely for our own account in connection with (A) all transactions relating to the securities
and (B) all hedging transactions in connection with our obligations under the securities;
(iii) any
and all assets and positions relating to hedging transactions by us or our affiliates are assets and positions of those entities
and are not assets and positions held for the benefit of the purchaser or holder;
(iv) our
interests are adverse to the interests of the purchaser or holder; and
(v) neither
we nor any of our affiliates is a fiduciary or adviser of the purchaser or holder in connection with any such assets, positions
or transactions, and any information that we or any of our affiliates may provide is not intended to be impartial investment advice.
Each purchaser and holder of the securities has exclusive responsibility
for ensuring that its purchase, holding and disposition of the securities do not violate the prohibited transaction rules of ERISA
or the Code or any Similar Law. The sale of any securities to any Plan or plan subject to Similar Law is in no respect a representation
by us or any of our affiliates or representatives that such an investment meets all relevant legal requirements with respect to
investments by plans generally or any particular plan, or that such an investment is appropriate for plans generally or any particular
plan. In this regard, neither this discussion nor anything provided in this document is or is intended to be investment advice
directed at any potential Plan purchaser or at Plan purchasers generally and such purchasers of these securities should consult
and rely on their own counsel and advisers as to whether an investment in these securities is suitable.
However, individual retirement accounts, individual retirement
annuities and Keogh plans, as well as employee benefit plans that permit participants to direct the investment of their accounts,
will not be permitted to purchase or hold the securities if the account, plan or annuity is for the benefit of an employee of Morgan
Stanley or Morgan Stanley Wealth Management or a family member and the employee receives any compensation (such as, for example,
an addition to bonus) based on the purchase of the securities by the account, plan or annuity.
|
Additional
considerations:
|
Client accounts over which Morgan Stanley, Morgan Stanley Wealth Management or any of their respective subsidiaries have investment discretion are not permitted to purchase the securities, either directly or indirectly.
|
Supplemental
information regarding plan of distribution; conflicts of interest:
|
The agent may distribute the securities through Morgan Stanley
Smith Barney LLC (“Morgan Stanley Wealth Management”), as selected dealer, or other dealers, which may include Morgan
Stanley & Co. International plc (“MSIP”) and Bank Morgan Stanley AG. Morgan Stanley Wealth Management, MSIP and
Bank Morgan Stanley AG are affiliates of ours. Selected dealers, including Morgan Stanley Wealth
|
Morgan Stanley Finance LLC
Dual Directional Buffered Participation Securities Based on the Performance of the Dow Jones Industrial Average
SM
due January 5, 2021
Principal at Risk Securities
|
Management, and their financial advisors will collectively receive
from the agent, Morgan Stanley & Co. LLC, a fixed sales commission of $0.20 for each security they sell. In addition, Morgan
Stanley Wealth Management will receive a structuring fee of $0.05 for each security.
MS & Co. is an affiliate of MSFL and a wholly owned subsidiary
of Morgan Stanley, and it and other affiliates of ours expect to make a profit by selling, structuring and, when applicable, hedging
the securities. When MS & Co. prices this offering of securities, it will determine the economic terms of the securities such
that for each security the estimated value on the pricing date will be no lower than the minimum level described in “Investment
Summary” beginning on page 2.
MS & Co. will conduct this offering in compliance with the
requirements of FINRA Rule 5121 of the Financial Industry Regulatory Authority, Inc., which is commonly referred to as FINRA, regarding
a FINRA member firm’s distribution of the securities of an affiliate and related conflicts of interest. MS & Co. or any
of our other affiliates may not make sales in this offering to any discretionary account. See “Plan of Distribution (Conflicts
of Interest)” and “Use of Proceeds and Hedging” in the accompanying product supplement.
|
Contact:
|
Morgan Stanley Wealth Management clients may contact their local Morgan Stanley branch office or our principal executive offices at 1585 Broadway, New York, New York 10036 (telephone number (866) 477-4776). All other clients may contact their local brokerage representative. Third-party distributors may contact Morgan Stanley Structured Investment Sales at (800) 233-1087.
|
Where
you can find more information:
|
MSFL and Morgan Stanley have filed a registration statement (including
a prospectus, as supplemented by the product supplement for participation securities and the index supplement) with the Securities
and Exchange Commission, or SEC, for the offering to which this communication relates. You should read the prospectus in that registration
statement, the product supplement for participation securities, the index supplement and any other documents relating to this offering
that MSFL and Morgan Stanley have filed with the SEC for more complete information about MSFL, Morgan Stanley and this offering.
You may get these documents without cost by visiting EDGAR on the SEC web site at
.
www.sec.gov.
Alternatively, MSFL and/or Morgan Stanley will arrange to send you the prospectus, the product supplement for participation securities
and the index supplement if you so request by calling toll-free 800-584-6837.
You may access these documents on the SEC web site at www.sec.gov
.
as
follows:
Product Supplement for Participation Securities dated November 16, 2017
Index Supplement dated November 16, 2017
Prospectus dated November 16, 2017
Terms used but not defined in this document are defined in the
product supplement for participation securities, in the index supplement or in the prospectus.
|
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