Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp)
July 10 2020 - 06:01AM
Edgar (US Regulatory)
Morgan
Stanley
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Free Writing Prospectus to Preliminary Terms No. 4,527
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Registration Statement Nos. 333-221595; 333-221595-01
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Dated July 9, 2020; Filed pursuant to Rule 433
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1.25-Year Worst-of INDU and SPX Fixed Income Auto-Callable
Securities
This document provides a summary of the terms
of the 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
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Issuing entity:
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Morgan Stanley Finance LLC
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Guarantor:
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Morgan Stanley
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Underlyings:
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Dow
Jones Industrial AverageSM (INDU) and S&P 500® Index (SPX)
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Early redemption:
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If the index closing value of each underlying index is greater than or equal to its initial index value on any monthly redemption determination date, the securities will be automatically redeemed
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Downside threshold level:
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60% of the initial index value for each underlying
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Monthly coupon:
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At least 4.00% per annum
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Coupon payment dates:
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Monthly
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Redemption dates:
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Beginning after 3 months, monthly
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Pricing date:
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July 31, 2020
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Final observation date:
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November 1, 2021
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Maturity date:
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November 4, 2021
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CUSIP:
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61771BUL6
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Preliminary terms:
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https://www.sec.gov/Archives/edgar/data/895421/000095
010320013417/dp132053_fwp-ps4527.htm
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1All payments are subject to our credit risk
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Hypothetical Payout at Maturity1
(if the securities have
not been previously redeemed)
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Change in Worst Performing Underlying
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Payment at Maturity (excluding the coupon payable at maturity)
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+40%
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$1,000.00
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+30%
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$1,000.00
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+20%
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$1,000.00
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+10%
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$1,000.00
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0%
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$1,000.00
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-10%
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$1,000.00
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-20%
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$1,000.00
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-30%
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$1,000.00
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-40%
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$1,000.00
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-41%
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$590.00
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-50%
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$500.00
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-60%
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$400.00
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-70%
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$300.00
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-80%
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$200.00
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-90%
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$100.00
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-100%
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$0
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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.
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·
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The
securities do not guarantee the return of any principal.
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·
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You
are exposed to the price risk of each underlying index, with respect to the payment at
maturity, if any.
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·
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Because
the securities are linked to the performance of the worst performing underlying index,
you are exposed to greater risks of sustaining a significant loss on your investment
than if the securities were linked to just one index.
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·
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Investors
will not participate in any appreciation in either underlying index.
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·
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The
market price will be influenced by many unpredictable factors.
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·
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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.
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·
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The
estimated value of the securities is approximately $968.20 per security, or within $35.00
of 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.
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·
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As
a finance subsidiary, MSFL has no independent operations and will have no independent
assets.
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·
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Not
equivalent to investing in the underlying indices.
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·
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The
securities will not be listed on any securities exchange and secondary trading may be
limited. Accordingly, you should be willing
to hold your securities for the entire 1.25-year term of the securities.
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·
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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.
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·
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Hedging
and trading activity by our affiliates could potentially affect the value of the securities.
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·
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The
calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL,
will make determinations with respect to the securities.
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·
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Adjustments
to the underlying indices could adversely affect the value of the securities.
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·
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The
U.S. federal income tax consequences of an investment in the securities are uncertain.
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Tax Considerations
You should review carefully the discussion in the
accompanying preliminary terms under the caption “Additional Information About the Securities–Tax considerations”
concerning the U.S. federal income tax consequences of an investment in the securities, and you should consult your tax adviser.
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