Morgan Stanley (MS): Structured notes tied to worst of INDU and RTY, due May 2028
Morgan Stanley Finance sets 2028 worst-of INDU/RTY buffered securities: 120.25% max upside, 15% buffer, est. value $964.70.
What this filing says
Morgan Stanley Finance LLC filed a free writing prospectus for buffered participation securities linked to the lower-performing of the Dow Jones Industrial Average and the Russell 2000 Index. Holders receive 100% of any gain up to a maximum payment of 120.25% of principal, and are protected against the first 15% of losses, so they can lose up to 85% at maturity. The offering is unsecured, and all payments depend on Morgan Stanley's credit.
Key figures
- Maximum upside payment at maturity
- $1,202.50 per security (120.25% of principal)
- Buffer amount
- 15%
- Maximum loss
- 85%
- Estimated value
- $964.70 per security
- Pricing date
- November 24, 2026
- Maturity date
- May 30, 2028
Positive for shareholders
- Returns 100% of gains on the worst-performing underlier up to the 120.25% cap.
- A 15% buffer absorbs the first part of any decline in the worst-performing underlier.
Negative for shareholders
- Losses beyond the 15% buffer are borne by the investor, down to 20% of principal in the stated scenario.
- Gains are capped at 20.25% even if the worst-performing underlier rises much more.
- Payments depend on Morgan Stanley's credit, so the investor is exposed to its default risk.
- The estimated value of $964.70 is below the $1,000 principal amount.
Written by Quantisnow AI from this filing. Not financial advice.
Key terms
- Buffered participation security:
- A note that protects investors from a set portion of losses in an underlying index while capping how much they can gain.
- Worst-of:
- A structure where the payout depends only on whichever linked index performed worst over the term.
- Stated principal amount:
- The face amount of each security on which payments are calculated, here $1,000.
- Estimated value:
- The issuer's internal estimate of what the security is worth at issuance, which is typically below the price paid.
FAQ
What does Morgan Stanley's filing say about the payout on these securities?
The payment at maturity is based solely on the worst-performing of the Dow Jones Industrial Average and the Russell 2000 Index, with gains up to 20.25% and a 15% buffer against losses.
How much could an investor lose on these Morgan Stanley securities?
If the worst-performing underlier falls 95%, investors would lose 80% of principal and receive $200 per security, and the maximum loss is 85%.
Historical context for MS
Across the 24 sessions after earlier MS headlines, the stock closed higher 10 times and lower 14 times, with a median move of 1.4% in either direction. This shows timing only: many things move a stock in a session, and these figures do not show that any headline caused a move.
| Session | Earlier headline | MS | SPY |
|---|---|---|---|
| Oct 29, 2026 | Jed Finn to Speak at the BMO Financials Conference | -0.1% | -0.4% |
| Oct 27, 2026 | Morgan Stanley Family Office Launches Initiative to Help Families Navigate Complexity, Change and Generational Transitionsand 1 other headline that session | +1.9% | +0.6% |
| Oct 26, 2026 | Morgan Stanley Real Estate Investing Acquires State-of-the-Art Logistics Facility in Virginia for $172.1 Million | +2.2% | +0.7% |
| Oct 22, 2026 | Morgan Stanley Sustainable Signals: Global Survey Shows Institutional Investors Expect Modest Growth in Sustainable Investment Allocationsand 1 other headline that session | -1.6% | -1.2% |
| Oct 21, 2026 | Morgan Stanley Named 2026 Money Management Institute/Barron’s Wealth Management Advisory Platform of the Year | +3.7% | +0.5% |
| Oct 20, 2026 | Morgan Stanley Survey: 401(k) Plans Rival Healthcare as Top Valued Benefitand 1 other headline that session | +1.1% | +0.3% |
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