Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp)
August 05 2019 - 6:17AM
Edgar (US Regulatory)
Morgan Stanley
|
Free
Writing Prospectus to Preliminary Terms No. 2,340
Registration
Statement Nos. 333-221595; 333-221595-01
Dated
August 1, 2019; Filed pursuant to Rule 433
|
2.5-Year Worst-of SPX and RTY Dual Directional Buffered Participation
Securities
This document provides a summary of the terms of the Buffered
Securities. Investors must carefully review the accompanying preliminary terms referenced below, product supplement, index supplement
and prospectus, and the “Risk Considerations” on the following page, prior to making an investment decision
Terms
|
Issuing
entity:
|
Morgan
Stanley Finance LLC
|
Guarantor:
|
Morgan
Stanley
|
Underlyings:
|
S&P
500
®
Index (SPX) and Russell 2000
®
Index (RTY)
|
Participation
rate:
|
At
least 100%
|
Buffer
amount:
|
15%
of principal (85% maximum loss)
1
|
Pricing
date:
|
August
30, 2019
|
Valuation
date:
|
February
28, 2022
|
Maturity
date:
|
March
3, 2022
|
CUSIP:
|
61769HNZ4
|
Preliminary
Terms:
|
https://www.sec.gov/Archives/edgar/data/895421/000095010319010184/dp110677_fwp-ps2340.htm
|
1
All payments are subject to our credit risk
Hypothetical Payout at Maturity
1
The payment at maturity will be based solely
on the performance of the worst performing underlying, which could be either underlying. The graph and table below illustrate the
payment at maturity depending on the performance of the worst performing underlying.
Change in Worst Performing Underlying
|
Return on Buffered Securities
|
+50.00%
|
50.00%*
|
+40.00%
|
40.00%*
|
+30.00%
|
30.00%*
|
+20.00%
|
20.00%*
|
+10.00%
|
10.00%*
|
0.00%
|
0.00%
|
-10.00%
|
10.00%
|
-15.00%
|
15.00%
|
-20.00%
|
-5.00%
|
-30.00%
|
-15.00%
|
-40.00%
|
-25.00%
|
-50.00%
|
-35.00%
|
*Assumes a participation rate of 100%
|
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.
Underlying Indices
For more information about the underlying indices, including
historical performance information, see the accompanying preliminary terms.
Risk Considerations
The risks set forth below are
discussed in more detail in the “Risk Factors” section in the accompanying preliminary terms. Please review those
risk factors carefully prior to making an investment decision.
|
·
|
The
Buffered Securities do not pay interest and provide a minimum payment at maturity of
only 15% of the stated principal amount.
|
|
·
|
You
are exposed to the price risk of both underlying indices.
|
|
·
|
Because
the Buffered Securities are linked to the performance of the worst performing underlying
index, you are exposed to greater risk of sustaining a loss on your investment than if
the Buffered Securities were linked to just one underlying index.
|
|
·
|
The
market price of the Buffered Securities will be influenced by many unpredictable factors.
|
|
·
|
The
Buffered 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
Buffered Securities.
|
|
·
|
As
a finance subsidiary, MSFL has no independent operations and will have no independent
assets.
|
|
·
|
The
estimated value of the Buffered Securities is $976.60 per Buffered Security, or $15.00
within that estimate, and 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
Buffered Securities are linked to the Russell 2000® Index and are subject to risks
associated with small-capitalization companies.
|
|
·
|
The
amount payable on the Buffered Securities is not linked to the values of the underlying
indices at any time other than the valuation date.
|
|
·
|
Investing
in the Buffered Securities is not equivalent to investing in either underlying index.
|
|
·
|
Adjustments
to the underlying indices could adversely affect the value of the Buffered Securities.
|
|
·
|
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 Buffered Securities in the original issue price reduce the
economic terms of the Buffered Securities, cause the estimated value of the Buffered
Securities to be less than the original issue price and will adversely affect secondary
market prices.
|
|
·
|
The
Buffered Securities will not be listed on any securities exchange and secondary trading
may be limited.
|
|
·
|
Hedging
and trading activity by our affiliates could potentially adversely affect the value of
the Buffered Securities.
|
|
·
|
The
calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL,
will make determinations with respect to the Buffered Securities.
|
|
·
|
The
U.S. federal income tax consequences of an investment in the Buffered Securities are
uncertain.
|
Tax Considerations
You should review carefully the discussion in the accompanying
preliminary terms under the caption “Additional Information About the Buffered Securities– Tax considerations”
concerning the U.S. federal income tax consequences of an investment in the Buffered Securities, and you should consult your tax
adviser.
Morgan Stanley Depository Shares Representing 1/1000TH Preferred Series 1 Fixed TO Floating Non (Cum) (NYSE:MSPI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Morgan Stanley Depository Shares Representing 1/1000TH Preferred Series 1 Fixed TO Floating Non (Cum) (NYSE:MSPI)
Historical Stock Chart
From Jul 2023 to Jul 2024