Obbligazione Morgan Stanley Financial 0% ( US61770FE773 ) in USD

Morgan Stanley Financial

115 USD ▲

Stati Uniti

US61770FE773 ( in USD )

05/05/2022 - Obbligazione è scaduto

Prospetto opuscolo dell'obbligazione Morgan Stanley Finance US61770FE773 in USD 0%, scaduta

61770FE77

Morgan Stanley è una delle maggiori istituzioni finanziarie globali, operante in servizi di investment banking, gestione patrimoniale e trading.

The Obbligazione issued by Morgan Stanley Financial ( United States ) , in USD, with the ISIN code US61770FE773, pays a coupon of 0% per year.
The coupons are paid 2 times per year and the Obbligazione maturity is 05/05/2022

424B2 1 dp127569_424b2-ps3827.htm FORM 424B2
CALCULATION OF REGISTRATION FEE

Title of Each Class of Securities Offered

Maximum Aggregate Offering Price

Amount of Registration Fee
Dual Directional Buffered Performance

$3,530,000

$458.19
Leveraged Upside Securities due 2022

April 2 0 2 0
Pricing Supplement No. 3,827
Registration Statement Nos. 333-221595; 333-221595-01
Dated April 30, 2020
Filed pursuant to Rule 424(b)(2)
Morgan Stanley Finance LLC
STRUCTURED INVESTMENTS
Opportunities in U.S. Equities
Dual Directional Buffered PLUS Based on the Value of the Worst Performing of the S&P 500® Index and the
Dow Jones Industrial AverageSM due May 5, 2022
Buffe re d Pe rform a nc e Le ve ra ge d U pside Se c urit ie s SM
Fully a nd U nc ondit iona lly Gua ra nt e e d by M orga n St a nle y
Princ ipa l a t Risk Se c urit ie s
The Dual Directional Buffered PLUS, or "Buffered PLUS," are unsecured obligations of Morgan Stanley Finance LLC ("MSFL") and
are fully and unconditionally guaranteed by Morgan Stanley. The Buffered PLUS will pay no interest, provide a minimum payment
at maturity of only 15% of the stated principal amount and have the terms described in the accompanying product supplement for
PLUS, index supplement and prospectus, as supplemented or modified by this document. The payment at maturity on the Buffered
PLUS will be based on the value of the worst performing of the S&P 500® Index and the Dow Jones Industrial AverageSM. At
maturity, if the final index value of e a c h underlying index is gre a t e r t ha n its respective initial index value, investors will receive
the stated principal amount of their investment plus leveraged upside performance of the worst performing underlying index, subject
to the maximum payment at maturity. If the final index value of e it he r underlying index is le ss t ha n or e qua l to its respective
initial index value, but the final index value of e a c h underlying index is gre a t e r t ha n or e qua l t o 85% of its respective initial
index value, meaning that ne it he r underlying index has decreased from its initial index value by an amount greater than the buffer
amount of 15%, investors will receive the stated principal amount of their investment plus an unleveraged positive return based on
the absolute value of the performance of the worst performing underlying index, which will be inherently limited to a maximum
return of 15%. However, if the final index value of e it he r underlying index is le ss t ha n 85% of its respective initial index value,
meaning that e it he r underlying index has decreased from its respective initial index value by an amount greater than the buffer
amount of 15%, the absolute return feature will no longer be available and instead investors will lose 1% for every 1% decline in
the worst performing underlying index beyond the specified buffer amount, subject to the minimum payment at maturity of 15% of
the stated principal amount. Investors may lose up to 85% of the stated principal amount of the Buffered PLUS. Because the
payment at maturity of the Buffered PLUS is based on the worst performing of the underlying indices, a decline in e it he r
underlying index beyond the buffer amount will result in a loss, and potentially a significant loss, of your investment even if the
other underlying index has appreciated or has not declined as much. The Buffered PLUS are for investors who seek an equity
index-based return and who are willing to risk their principal, risk exposure to the worst performing of two underlying indices and
forgo current income and upside above the maximum payment at maturity in exchange for the leverage, buffer and absolute return
features that in each case apply to a limited range of performance of the worst performing underlying index. The Buffered PLUS
are notes issued as part of MSFL's Series A Global Medium-Term Notes program.
The Buffered PLUS differ from the PLUS described in the accompanying product supplement for PLUS in that the Buffered PLUS
offer the potential for a positive return at maturity if the worst performing underlying index depreciates by no more than 15%.
All pa ym e nt s a re subje c t t o our c re dit risk . I f w e de fa ult on our obliga t ions, you c ould lose som e or a ll of
your inve st m e nt . T he se Buffe re d PLU S a re not se c ure d obliga t ions a nd you w ill not ha ve a ny se c urit y
int e re st in, or ot he rw ise ha ve a ny a c c e ss t o, a ny unde rlying re fe re nc e a sse t or a sse t s.
FI N AL T ERM S
I ssue r:
Morgan Stanley Finance LLC
Gua ra nt or:
Morgan Stanley
M a t urit y da t e :
May 5, 2022
U nde rlying indic e s:
S&P 500® Index (the "SPX Index") and the Dow Jones Industrial AverageSM (the "INDU
Index")
Aggre ga t e princ ipa l a m ount :
$3,530,000
https://www.sec.gov/Archives/edgar/data/895421/000095010320008912/dp127569_424b2-ps3827.htm[5/4/2020 2:15:55 PM]

Pa ym e nt a t m a t urit y:
If the final index value of e a c h unde rlying inde x is greater than its respective initial
index value,
$1,000 + ($1,000 × leverage factor × index percent change of the worst performing

underlying index)
In no event will the payment at maturity exceed the maximum payment at maturity.
If the final index value of e it he r unde rlying inde x is less than or equal to its respective
initial index value but the final index value of e a c h unde rlying inde x is greater than or

equal to 85% of its respective initial index value, meaning that ne it he r underlying index has
decreased from its initial index value by an amount greater than the buffer amount of 15%,

$1,000 + ($1,000 × absolute index return of the worst performing underlying index)
If the final index value of e it he r unde rlying inde x is less than 85% of its respective initial

index value, meaning that e it he r underlying index has decreased from its respective initial
index value by an amount greater than the buffer amount of 15%,

($1,000 × index performance factor of the worst performing underlying index) + $150
Under these circumstances, the payment at maturity will be less than the stated principal

amount of $1,000. However, under no circumstances will the Buffered PLUS pay less than
$150 per Buffered PLUS at maturity.
With respect to each underlying index, (final index value initial index value) / initial index
I nde x pe rc e nt c ha nge :
value
Worst pe rform ing unde rlying
The underlying index with the lesser index percentage change
inde x :
I nde x pe rform a nc e fa c t or:
With respect to each underlying index, final index value / initial index value
The absolute value of the index percent change. For example, a -5% index percent change
Absolut e inde x re t urn:
will result in a +5% absolute index return.
I nit ia l inde x va lue :
With respect to the SPX Index, 2,912.43, which is the index closing value of such index on
the pricing date
With respect to the INDU Index, 24,345.72, which is the index closing value of such index on
the pricing date
Fina l inde x va lue :
With respect to each underlying index, the index closing value of such index on the valuation
date
V a lua t ion da t e :
May 2, 2022, subject to adjustment for non-index business days and certain market
disruption events
M inim um pa ym e nt a t m a t urit y: $150 per Buffered PLUS (15% of the stated principal amount)
Le ve ra ge fa c t or:
150%
M a x im um pa ym e nt a t m a t urit y: $1,200 per Buffered PLUS (120% of the stated principal amount)
Buffe r a m ount :
15%. As a result of the buffer amount of 15%, the value at or above which each underlying
index must close on the valuation date so that investors do not suffer a loss on their initial
investment in the Buffered PLUS is as follows:
With respect to the SPX Index: 2,475.566, which is approximately 85% of the initial index
value.
With respect to the INDU Index: 20,693.862, which is 85% of the initial index value.
St a t e d princ ipa l a m ount :
$1,000 per Buffered PLUS
I ssue pric e :
$1,000 per Buffered PLUS
Pric ing da t e :
April 30, 2020
Origina l issue da t e :
May 5, 2020 (3 business days after the pricing date)
CU SI P / I SI N :
61770FE77 / US61770FE773
List ing:
The Buffered PLUS will not be listed on any securities exchange.
Age nt :
Morgan Stanley & Co. LLC ("MS & Co."), a wholly owned subsidiary of Morgan Stanley and
an affiliate of MSFL. See "Supplemental information regarding plan of distribution; conflicts of
interest."
Est im a t e d va lue on t he pric ing $968.20 per Buffered PLUS. See "Investment Summary" on page 2.
da t e :
Com m issions a nd issue pric e :
Age nt 's c om m issions a nd
Pric e t o public (1)
fe e s (2)
Proc e e ds t o us(3)
Pe r Buffe re d PLU S
$1,000
$6
$994
T ot a l
$3,530,000
$21,180
$3,508,820
(1) The Buffered PLUS will be sold only to investors purchasing the Buffered PLUS in fee-based advisory accounts.
(2) MS & Co. expects to sell all of the Buffered PLUS that it purchases from us to an unaffiliated dealer at a price of $994 per Buffered PLUS,
for further sale to certain fee-based advisory accounts at the price to public of $1,000 per Buffered PLUS. MS & Co. will not receive a sales
commission with respect to the Buffered PLUS. See "Supplemental information regarding plan of distribution; conflicts of interest." For
https://www.sec.gov/Archives/edgar/data/895421/000095010320008912/dp127569_424b2-ps3827.htm[5/4/2020 2:15:55 PM]

additional information, see "Plan of Distribution (Conflicts of Interest)" in the accompanying product supplement for PLUS.
(3) See "Use of proceeds and hedging" on page 17.
T he Buffe re d PLU S involve risk s not a ssoc ia t e d w it h a n inve st m e nt in ordina ry de bt
se c urit ie s. Se e "Risk Fa c t ors" be ginning on pa ge 7 .
T he Se c urit ie s a nd Ex c ha nge Com m ission a nd st a t e se c urit ie s re gula t ors ha ve not a pprove d or disa pprove d
t he se se c urit ie s, or de t e rm ine d if t his doc um e nt or t he a c c om pa nying produc t supple m e nt , inde x
supple m e nt a nd prospe c t us is t rut hful or c om ple t e . Any re pre se nt a t ion t o t he c ont ra ry is a c rim ina l offe nse .
T he Buffe re d PLU S a re not de posit s or sa vings a c c ount s a nd a re not insure d by t he Fe de ra l De posit
I nsura nc e Corpora t ion or a ny ot he r gove rnm e nt a l a ge nc y or inst rum e nt a lit y, nor a re t he y obliga t ions of, or
gua ra nt e e d by, a ba nk .
Y ou should re a d t his doc um e nt t oge t he r w it h t he re la t e d produc t supple m e nt , inde x supple m e nt a nd
prospe c t us, e a c h of w hic h c a n be a c c e sse d via t he hype rlink s be low . Ple a se a lso se e "Addit iona l T e rm s of
t he Buffe re d PLU S" a nd "Addit iona l I nform a t ion About t he Buffe re d PLU S" a t t he e nd of t his doc um e nt .
As use d in t his doc um e nt , "w e ," "us" a nd "our" re fe r t o M orga n St a nle y or M SFL, or M orga n St a nle y a nd
M SFL c olle c t ive ly, a s t he c ont e x t re quire s.
Produc t Supple m e nt for PLU S da t e d N ove m be r 1 6 , 2 0 1 7 I nde x Supple m e nt da t e d N ove m be r 1 6 , 2 0 1 7
Prospe c t us da t e d N ove m be r 1 6 , 2 0 1 7

Morgan Stanley Finance LLC
Dual Directional Buffered PLUS Based on the Value of the Worst Performing of the S&P 500® Index and the
Dow Jones Industrial AverageSM due May 5, 2022
Buffe re d Pe rform a nc e Le ve ra ge d U pside Se c urit ie s SM
Princ ipa l a t Risk Se c urit ie s
Investment Summary

Buffe re d Pe rform a nc e Le ve ra ge d U pside Se c urit ie s

Princ ipa l a t Risk Se c urit ie s

The Dual Directional Buffered PLUS Based on the Value of the Worst Performing of the S&P 500® Index and the Dow Jones
Industrial AverageSM due May 5, 2022 (the "Buffered PLUS") can be used:

To gain exposure to the worst performing of two U.S. equity indices

To potentially outperform the worst performing of the S&P 500® Index and the Dow Jones Industrial AverageSM, subject to the
maximum payment at maturity, by taking advantage of the leverage factor

To obtain an unleveraged positive return for a limited range of negative performance of the worst performing underlying index

If the final index value of e it he r underlying index is le ss t ha n 85% of its respective initial index value, investors will be negatively
exposed to the decline in the worst performing underlying index beyond the buffer amount and will lose some or a substantial
portion of their investment.

M a t urit y:
2 years
Le ve ra ge fa c t or:
150%
M a x im um pa ym e nt a t
$1,200 per Buffered PLUS (120% of the stated principal amount)
m a t urit y:
M inim um pa ym e nt a t m a t urit y: $150 per Buffered PLUS (15% of the stated principal amount). Investors
may lose up to 85% of the stated principal amount of the Buffered PLUS.
Buffe r a m ount :
15%, with 1-to-1 downside exposure to the worst performing underlying
index below the buffer
https://www.sec.gov/Archives/edgar/data/895421/000095010320008912/dp127569_424b2-ps3827.htm[5/4/2020 2:15:55 PM]

Coupon:
None
List ing:
The Buffered PLUS will not be listed on any securities exchange

The original issue price of each Buffered PLUS is $1,000. This price includes costs associated with issuing, selling, structuring and
hedging the Buffered PLUS, which are borne by you, and, consequently, the estimated value of the Buffered PLUS on the pricing
date is less than $1,000. We estimate that the value of each Buffered PLUS on the pricing date is $968.20.

What goes into the estimated value on the pricing date?

In valuing the Buffered PLUS on the pricing date, we take into account that the Buffered PLUS comprise both a debt component
and a performance-based component linked to the underlying indices. The estimated value of the Buffered PLUS is determined
using our own pricing and valuation models, market inputs and assumptions relating to the underlying indices, instruments based
on the underlying indices, 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 Buffered PLUS?

In determining the economic terms of the Buffered PLUS, including the leverage factor, the buffer amount, the maximum payment
at maturity 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 Buffered PLUS 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 Buffered PLUS?

The price at which MS & Co. purchases the Buffered PLUS in the secondary market, absent changes in market conditions,
including those related to the underlying indices, 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 Buffered PLUS 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 Buffered PLUS in the secondary market, absent changes
in market conditions, including those related to the underlying indices, 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 Buffered PLUS, and, if it once chooses to make a market, may cease
doing so at any time.

April 2020
Page 2
Morgan Stanley Finance LLC
Dual Directional Buffered PLUS Based on the Value of the Worst Performing of the S&P 500® Index and the
Dow Jones Industrial AverageSM due May 5, 2022
Buffe re d Pe rform a nc e Le ve ra ge d U pside Se c urit ie s SM
Princ ipa l a t Risk Se c urit ie s
K e y I nve st m e nt Ra t iona le

The Buffered PLUS offer the potential for a positive return at maturity based on the absolute value of a limited range of percentage
changes of the worst performing underlying index. At maturity, if the final index value of e a c h underlying index is gre a t e r t ha n
its respective initial index value, investors will receive the stated principal amount of their investment plus leveraged upside
performance of the worst performing underlying index, subject to the maximum payment at maturity. If the final index value of
e it he r underlying index is le ss t ha n or e qua l to its respective initial index value but the final index value of e a c h underlying
index is gre a t e r t ha n or e qua l t o 85% of its respective initial index value, investors will receive the stated principal amount of
their investment plus an unleveraged positive return based on the absolute value of the performance of the worst performing
underlying index. However, if the final index value of e it he r underlying index is le ss t ha n 85% of its respective initial index value,
the absolute return feature will no longer be available and instead investors will lose 1% for every 1% decline in the worst
https://www.sec.gov/Archives/edgar/data/895421/000095010320008912/dp127569_424b2-ps3827.htm[5/4/2020 2:15:55 PM]

performing underlying index beyond the specified buffer amount, subject to the minimum payment at maturity. I nve st ors m a y
lose up t o 8 5 % of t he st a t e d princ ipa l a m ount of t he Buffe re d PLU S. All pa ym e nt s on t he Buffe re d PLU S a re
subje c t t o our c re dit risk .

The Buffered PLUS offer investors an opportunity to receive 150% of the positive return of the worst
performing of the underlying indices, subject to the maximum payment at maturity, if bot h underlying
Le ve ra ge d
indices have appreciated in value, or an unleveraged return reflecting the absolute value of the
Pe rform a nc e U p
performance of the worst performing of the underlying indices if one or bot h underlying indices have
t o a Ca p
declined but ne it he r underlying index has declined by an amount gre a t e r t ha n the buffer amount of
15%.
The Buffered PLUS enable investors to obtain an unleveraged positive return if the final index value of
Absolut e Re t urn
e it he r underlying index is le ss t ha n or e qua l to its respective initial index value but the final index
Fe a t ure
value of e a c h underlying index is gre a t e r t ha n or e qua l t o 85% of its respective initial index value.
U pside Sc e na rio
Bot h underlying indices increase in value, and, at maturity, the Buffered PLUS redeem for the stated
if Bot h
principal amount of $1,000 plus 150% of the index percent change of the worst performing underlying
U nde rlying
index, subject to the maximum payment at maturity of $1,200 per Buffered PLUS (120% of the stated
I ndic e s
principal amount).
Appre c ia t e
The final index value of e it he r underlying index is le ss t ha n or e qua l to its respective initial index
value but the final index value of e a c h underlying index is gre a t e r t ha n or e qua l t o 85% of its
respective initial index value. In this case, you receive a 1% positive return on the Buffered PLUS for
Absolut e Re t urn
each 1% negative return on the worst performing underlying index. For example, if the final index value
Sc e na rio
of the worst performing underlying index is 10% less than its respective initial index value, the Buffered
PLUS will provide a total positive return of 10% at maturity. The maximum return you may receive in this
scenario is a positive 15% return at maturity.
The final index value of e it he r underlying index is le ss t ha n 85% of its respective initial index value. In
this case, the Buffered PLUS redeem for less than the stated principal amount by an amount
proportionate to the percentage decrease of the worst performing underlying index over the term of the
Dow nside
Buffered PLUS, plus the buffer amount of 15%. For example, if the final index value of the worst
Sc e na rio
performing underlying index is 70% less than its initial index value, the Buffered PLUS will be redeemed
at maturity for a loss of 55% of principal at $450, or 45% of the stated principal amount. T he m inim um
pa ym e nt a t m a t urit y is $ 1 5 0 pe r Buffe re d PLU S.

Because the payment at maturity of the Buffered PLUS is based on the worst performing of the underlying indices, a decline in
e it he r underlying index to less than 85% of its respective initial index value will result in a loss, and potentially a significant loss,
of your investment, even if the other underlying index has appreciated or has not declined as much.

April 2020
Page 3
Morgan Stanley Finance LLC
Dual Directional Buffered PLUS Based on the Value of the Worst Performing of the S&P 500® Index and the
Dow Jones Industrial AverageSM due May 5, 2022
Buffe re d Pe rform a nc e Le ve ra ge d U pside Se c urit ie s SM
Princ ipa l a t Risk Se c urit ie s
Hypothetical Examples

The following hypothetical examples illustrate how to calculate the payment at maturity on the Buffered PLUS. The following
examples are for illustrative purposes only. The actual initial index value for each underlying index is set forth on the cover of this
document. Any payment at maturity on the Buffered PLUS is subject to our credit risk. The below examples are based on the
following terms:

St a t e d princ ipa l a m ount :
$1,000 per Buffered PLUS
https://www.sec.gov/Archives/edgar/data/895421/000095010320008912/dp127569_424b2-ps3827.htm[5/4/2020 2:15:55 PM]

Le ve ra ge fa c t or:
150%
H ypot he t ic a l init ia l inde x
With respect to the SPX Index: 3,000
va lue :
With respect to the INDU Index: 23,000
M a x im um pa ym e nt a t
$1,200 per Buffered PLUS (120% of the stated principal
m a t urit y:
amount)
M inim um pa ym e nt a t m a t urit y: $150 per Buffered PLUS (15% of the stated principal amount)
Buffe r a m ount :
15%

EX AM PLE 1 : T he fina l inde x va lue of e a c h unde rlying inde x is gre a t e r t ha n it s re spe c t ive init ia l inde x va lue .

Final index value

SPX Index: 3,300

INDU Index: 32,200
Index percent change

SPX Index: (3,300 3,000) / 3,000 = 10%
INDU Index: (32,200 23,000) / 23,000 = 40%
Payment at maturity
=
$1,000 + ($1,000 × leverage factor × index percent change of the worst
performing underlying index), subject to the maximum payment at
maturity

=
$1,000 + ($1,000 × 150% × 10%), subject to the maximum payment at
maturity

=
$1,150

In example 1, the final index values of both the SPX Index and INDU Index are greater than their initial index values. The SPX
Index has appreciated by 10% while the INDU Index has appreciated by 40%. Therefore, investors receive at maturity the stated
principal amount plus 150% of the appreciation of the worst performing underlying index, which is the SPX Index in this example,
subject to the maximum payment at maturity. Investors receive $1,150 per Buffered PLUS at maturity.

EX AM PLE 2 : T he fina l inde x va lue of e a c h unde rlying inde x is gre a t e r t ha n it s re spe c t ive init ia l inde x va lue .

Final index value

SPX Index: 4,500

INDU Index: 32,200
Index percent change

SPX Index: (4,500 3,000) / 3,000 = 50%
INDU Index: (32,200 23,000) / 23,000 = 40%
Payment at maturity
=
$1,000 + ($1,000 × leverage factor × index percent change of the worst
performing underlying index), subject to the maximum payment at
maturity

=
$1,000 + ($1,000 × 150% × 40%), subject to the maximum payment at
maturity

=
$1,200

In example 2, the final index values of both the SPX Index and INDU Index are greater than their initial index values. The SPX
Index has appreciated by 50% while the INDU Index has appreciated by 40%. Therefore, investors receive at maturity the stated
principal amount plus 150% of the appreciation of the worst performing underlying index, which is the INDU Index in this example,
subject to the maximum payment at maturity. Because the payment at maturity cannot exceed the maximum payment at maturity,
investors receive $1,200 per Buffered PLUS at maturity.

April 2020
Page 4
Morgan Stanley Finance LLC
Dual Directional Buffered PLUS Based on the Value of the Worst Performing of the S&P 500® Index and the
https://www.sec.gov/Archives/edgar/data/895421/000095010320008912/dp127569_424b2-ps3827.htm[5/4/2020 2:15:55 PM]

Dow Jones Industrial AverageSM due May 5, 2022
Buffe re d Pe rform a nc e Le ve ra ge d U pside Se c urit ie s SM
Princ ipa l a t Risk Se c urit ie s
EX AM PLE 3 : T he fina l inde x va lue of one unde rlying inde x is gre a t e r t ha n it s re spe c t ive init ia l inde x va lue
w hile t he fina l inde x va lue of t he ot he r unde rlying inde x is le ss t ha n it s re spe c t ive init ia l inde x va lue , but
ne it he r unde rlying inde x ha s de c re a se d from it s init ia l inde x va lue by a n a m ount gre a t e r t ha n t he buffe r
a m ount of 1 5 % .

Final index value

SPX Index: 4,200

INDU Index: 20,700
Index percent change

SPX Index: (4,200 3,000) / 3,000 = 40%
INDU Index: (20,700 23,000) / 23,000 = -10%
Payment at maturity
=
$1,000 + ($1,000 × absolute index return of the worst performing
underlying index)

=
$1,000 + ($1,000 × 10%)

=
$1,100

In example 3, the final index value of the SPX Index is greater than its respective initial index value, while the final index value of
the INDU Index is less than its respective initial index value. The SPX Index has appreciated by 40%, while the INDU Index has
declined by 10%, but neither underlying index has decreased from its initial index value by an amount greater than the buffer
amount of 15%. Therefore, investors receive at maturity the stated principal amount plus 100% of the absolute value of the
performance of the worst performing underlying index, which is the INDU Index in this example. Investors receive $1,100 per
Buffered PLUS at maturity. In this example, investors receive a positive return even though one of the underlying indices has
declined in value by 10%, due to the absolute return feature of the Buffered PLUS and because neither underlying index has
declined to below 85% of its initial index value.

EX AM PLE 4 : T he fina l inde x va lue of one unde rlying inde x is gre a t e r t ha n it s re spe c t ive init ia l inde x va lue
w hile t he fina l inde x va lue of t he ot he r unde rlying inde x is le ss t ha n 8 5 % of it s re spe c t ive init ia l inde x
va lue .

Final index value

SPX Index: 3,300

INDU Index: 11,500
Index percent change

SPX Index: (3,300 3,000) / 3,000 = 10%
INDU Index: (11,500 23,000) / 23,000 = -50%
Index performance

SPX Index: 3,300 / 3,000 = 110%
factor
INDU Index: 11,500 / 23,000 = 50%
Payment at maturity
=
($1,000 × index performance factor of the worst performing underlying
index) + $150

=
($1,000 × 50%) + $150

=
$650

In example 4, the final index value of the SPX Index is greater than its respective initial index value, while the final index value of
the INDU Index is less than 85% of its respective initial index value. While the SPX Index has appreciated by 10%, the INDU Index
has declined by 50%. Therefore, investors are exposed to the negative performance of the INDU Index, which is the worst
performing underlying index in this example, beyond the buffer amount of 15%, and receive a payment at maturity of $650 per
Buffered PLUS. In this example, investors lose the benefit of the absolute return feature and are exposed to the negative
performance of the worst performing underlying index even though the other underlying index has appreciated in value by 10%,
because the final index value of each index is not greater than or equal to 85% of its respective initial index value.

April 2020
Page 5
https://www.sec.gov/Archives/edgar/data/895421/000095010320008912/dp127569_424b2-ps3827.htm[5/4/2020 2:15:55 PM]

Morgan Stanley Finance LLC
Dual Directional Buffered PLUS Based on the Value of the Worst Performing of the S&P 500® Index and the
Dow Jones Industrial AverageSM due May 5, 2022
Buffe re d Pe rform a nc e Le ve ra ge d U pside Se c urit ie s SM
Princ ipa l a t Risk Se c urit ie s
EX AM PLE 5 : T he fina l inde x va lue of e a c h unde rlying inde x is le ss t ha n it s re spe c t ive init ia l inde x va lue ,
but ne it he r unde rlying inde x ha s de c re a se d from it s init ia l inde x va lue by a n a m ount gre a t e r t ha n t he buffe r
a m ount of 1 5 % .

Final index value

SPX Index: 2,700

INDU Index: 20,240
Index percent change

SPX Index: (2,700 3,000) / 3,000 = -10%
INDU Index: (20,240 23,000) / 23,000 = -12%
Payment at maturity
=
$1,000 + ($1,000 × absolute index return of the worst performing
underlying index)

=
$1,000 + ($1,000 × 12%)

=
$1,120

In example 5, the final index value of each underlying index is less than its respective initial index value, but neither underlying
index has decreased from its initial index value by an amount greater than the buffer amount of 15%. The SPX index has declined
by 10% while the INDU Index has declined by 12%. Therefore, investors receive at maturity the stated principal amount plus 100%
of the absolute value of the performance of the worst performing underlying index, which is the INDU Index in this example.
Investors receive $1,120 per Buffered PLUS at maturity.

EX AM PLE 6 : T he fina l inde x va lue of e a c h unde rlying inde x is le ss t ha n 8 5 % of it s re spe c t ive init ia l inde x
va lue .

Final index value

SPX Index: 900

INDU Index: 8,050
Index percent change

SPX Index: (900 3,000) / 3,000 = -70%
INDU Index: (8,050 23,000) / 23,000 = -65%
Index performance

SPX Index: 900 / 3,000 = 30%
factor
INDU Index: 8,050 / 23,000 = 35%
Payment at maturity
=
($1,000 × index performance factor of the worst performing underlying
index) + $150

=
($1,000 × 30%) + $150

=
$450

In example 6, the final index values of both the SPX Index and the INDU Index are less than their respective initial index values by
an amount greater than the buffer amount of 15%. The SPX index has declined by 70% while the INDU Index has declined by
65%. Therefore, investors are exposed to the negative performance of the SPX Index, which is the worst performing underlying
index in this example, beyond the buffer amount of 15%, and receive a payment at maturity of $450 per Buffered PLUS.

Be c a use t he pa ym e nt a t m a t urit y of t he Buffe re d PLU S is ba se d on t he w orst pe rform ing of t he unde rlying
indic e s, a de c line in e it he r unde rlying inde x by a n a m ount gre a t e r t ha n t he buffe r a m ount of 1 5 % w ill re sult
in a loss, a nd pot e nt ia lly a signific a nt loss, of your inve st m e nt , e ve n if t he ot he r unde rlying inde x ha s
a ppre c ia t e d or ha s not de c line d a s m uc h.

April 2020
Page 6
https://www.sec.gov/Archives/edgar/data/895421/000095010320008912/dp127569_424b2-ps3827.htm[5/4/2020 2:15:55 PM]

Morgan Stanley Finance LLC
Dual Directional Buffered PLUS Based on the Value of the Worst Performing of the S&P 500® Index and the
Dow Jones Industrial AverageSM due May 5, 2022
Buffe re d Pe rform a nc e Le ve ra ge d U pside Se c urit ie s SM
Princ ipa l a t Risk Se c urit ie s
Risk Factors

The following is a non-exhaustive list of certain key risk factors for investors in the Buffered PLUS. For further discussion of these
and other risks, you should read the section entitled "Risk Factors" in the accompanying product supplement for PLUS, 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 Buffered PLUS.

The Buffered PLUS do not pay interest and provide a minimum payment at maturity of only 15% of the
st a t e d princ ipa l a m ount . The terms of the Buffered PLUS differ from those of ordinary debt securities in that the Buffered
PLUS do not pay interest and provide a minimum payment at maturity of only 15% of the stated principal amount of the
Buffered PLUS. If the final index value of e it he r underlying index is le ss t ha n 85% of its initial index value, the absolute
return feature will no longer be available and you will instead receive for each Buffered PLUS that you hold a payment at
maturity that is less than the stated principal amount of each Buffered PLUS by an amount proportionate to the decline in the
value of the worst performing underlying index from its initial index value, plus $150 per Buffered PLUS. Ac c ordingly,
inve st ors m a y lose up t o 8 5 % of t he st a t e d princ ipa l a m ount of t he Buffe re d PLU S.

The appreciation potential of the Buffered PLUS is limited by the maximum payment at maturity. The
appreciation potential of the Buffered PLUS is limited by the maximum payment at maturity of $1,200 per Buffered PLUS, or
120% of the stated principal amount. Although the leverage factor provides 150% exposure to any increase in the final index
value of the worst performing underlying index over its initial index value, because the payment at maturity will be limited to
120% of the stated principal amount for the Buffered PLUS, any increase in the final index value of the worst performing
underlying index over its initial index value by more than approximately 13.333% of its initial index value will not further
increase the return on the Buffered PLUS.

You are exposed to the price risk of both underlying indices. Your return on the Buffered PLUS it not linked to a
basket consisting of both underlying indices. Rather, it will be based upon the independent performance of each underlying
index. Unlike an instrument with a return linked to a basket of underlying assets, in which risk is mitigated and diversified
among all the components of the basket, you will be exposed to the risks related to both underlying indices. Poor performance
by either underlying index over the term of the securities will negatively affect your return and will not be offset or mitigated by
any positive performance by the other underlying index. If either underlying index declines to below 85% of its respective initial
index value as of the valuation date, you will lose some or a substantial portion of your investment, even if the other underlying
index has appreciated or has not declined as much. Accordingly, your investment is subject to the price risk of both underlying
indices.

Because the Buffered PLUS are linked to the performance of the w orst performing underlying index, you
a re e x pose d t o gre a t e r risk of sust a ining a loss on your inve st m e nt t ha n if t he Buffe re d PLU S w e re
link e d t o just one unde rlying inde x . The risk that you will suffer a loss on your investment is greater if you invest in the
Buffered PLUS as opposed to substantially similar securities that are linked to the performance of just one underlying index.
With two underlying indices, it is more likely that either underlying index will decline to below 85% of its initial index value as of
the valuation date than if the Buffered PLUS were linked to only one underlying index. Therefore it is more likely that you will
suffer a loss on your investment.

The market price of the Buffered PLUS w ill be influenced by many unpredictable factors. Several factors
will influence the value of the Buffered PLUS in the secondary market and the price at which MS & Co. may be willing to
purchase or sell the Buffered PLUS in the secondary market, including the value, volatility and dividend yield of the underlying
indices, interest and yield rates in the market, time remaining until the Buffered PLUS mature, geopolitical conditions and
economic, financial, political, regulatory or judicial events and any actual or anticipated changes in our credit ratings or credit
spreads. The levels of the underlying indices may be, and have recently been, volatile, and we can give you no assurance that
the volatility will lessen. See "S&P 500® Index Overview" and "Dow Jones Industrial AverageSM Overview" below. You may
receive less, and possibly significantly less, than the stated principal amount per Buffered PLUS if you try to sell your Buffered
PLUS prior to maturity.

https://www.sec.gov/Archives/edgar/data/895421/000095010320008912/dp127569_424b2-ps3827.htm[5/4/2020 2:15:55 PM]

The Buffered PLUS are subject to our credit risk, and any actual or anticipated changes to our credit
ra t ings or c re dit spre a ds m a y a dve rse ly a ffe c t t he m a rk e t va lue of t he Buffe re d PLU S. You are dependent on
our ability to pay all amounts due on the Buffered PLUS at maturity and therefore you are subject to our credit risk. If we
default on its obligations under the Buffered PLUS, your investment would be at risk and you could lose some or all of your
investment. As a result, the market

April 2020
Page 7
Morgan Stanley Finance LLC
Dual Directional Buffered PLUS Based on the Value of the Worst Performing of the S&P 500® Index and the
Dow Jones Industrial AverageSM due May 5, 2022
Buffe re d Pe rform a nc e Le ve ra ge d U pside Se c urit ie s SM
Princ ipa l a t Risk Se c urit ie s
value of the Buffered PLUS 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 Buffered PLUS.

As a finance subsidiary, MSFL has no independent operations and w ill 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.

The amount payable on the Buffered PLUS is not linked to the values of the underlying indices at any
t im e ot he r t ha n t he va lua t ion da t e . The final index value of each underlying index will be based on the index closing
value of such index on the valuation date, subject to postponement for non-index business days and certain market disruption
events. Even if both underlying indices appreciate prior to the valuation date but the value of e it he r underlying index drops by
the valuation date to less than 85% of its initial index value, the payment at maturity will be less than it would have been had
the payment at maturity been linked to the values of the underlying indices prior to such drop. Although the actual values of the
underlying indices on the stated maturity date or at other times during the term of the Buffered PLUS may be higher than their
respective final index values, the payment at maturity will be based solely on the index closing values on the valuation date.

Investing in the Buffered PLUS is not equivalent to investing in either underlying index. Investing in the
Buffered PLUS is not equivalent to investing in either underlying index or the component stocks of either underlying index. As
an investor in the Buffered PLUS, you will not have voting rights or rights to receive dividends or other distributions or any other
rights with respect to stocks that constitute either underlying index.

Adjustments to the underlying indices could adversely affect the value of the Buffered PLUS. The publisher
of either underlying index may add, delete or substitute the stocks constituting such underlying index or make other
methodological changes that could change the value of such underlying index. The publisher of either underlying index may
discontinue or suspend calculation or publication of such 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 w e are w illing to pay for securities of this type, maturity and issuance size is likely to be low er
t ha n t he ra t e im plie d by our se c onda ry m a rk e t c re dit spre a ds a nd a dva nt a ge ous t o us. Bot h t he low e r
ra t e a nd t he inc lusion of c ost s a ssoc ia t e d w it h issuing, se lling, st ruc t uring a nd he dging t he Buffe re d
PLU S in t he origina l issue pric e re duc e t he e c onom ic t e rm s of t he Buffe re d PLU S, c a use t he e st im a t e d
va lue of t he Buffe re d PLU S t o be le ss t ha n t he origina l issue pric e a nd w ill a dve rse ly a ffe c t se c onda ry
m a rk e t pric e s. 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 Buffered PLUS 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
https://www.sec.gov/Archives/edgar/data/895421/000095010320008912/dp127569_424b2-ps3827.htm[5/4/2020 2:15:55 PM]

Document Outline

#1">
- #1">