# EDGAR Filing Document

**Accession Number:** 0001666268
**File Stem:** 0000950103-23-002789
**Filing Date:** 2023-2
**Character Count:** 113119
**Document Hash:** 084213ed0c49d1487b5ba255ce25600c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950103-23-002789.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0000950103-23-002789

**CONFORMED SUBMISSION TYPE**: FWP

**PUBLIC DOCUMENT COUNT**: 11

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230222

**SUBJECT COMPANY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Morgan Stanley Finance LLC
- **CENTRAL INDEX KEY:** 0001666268
- **STANDARD INDUSTRIAL CLASSIFICATION:** ASSET-BACKED SECURITIES [6189]
- **IRS NUMBER:** 363145972
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** FWP
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-250103-01
- **FILM NUMBER:** 23655725

**BUSINESS ADDRESS:**
- **STREET 1:** 1585 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036
- **BUSINESS PHONE:** (212) 761-4000

**MAIL ADDRESS:**
- **STREET 1:** 1585 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036
**FILED BY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Morgan Stanley Finance LLC
- **CENTRAL INDEX KEY:** 0001666268
- **STANDARD INDUSTRIAL CLASSIFICATION:** ASSET-BACKED SECURITIES [6189]
- **IRS NUMBER:** 363145972
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** FWP

**BUSINESS ADDRESS:**
- **STREET 1:** 1585 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036
- **BUSINESS PHONE:** (212) 761-4000

**MAIL ADDRESS:**
- **STREET 1:** 1585 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036

**February 2023**

Amendment No. 1 dated February 22, 2023 relating to

Preliminary Terms No. 8,086

Registration Statement Nos. 333-250103; 333-250103-01

Dated February 21, 2023

Filed pursuant to Rule 433

Morgan Stanley Finance LLC

Structured Investments

Opportunities in Commodities

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>**

**Fully and Unconditionally Guaranteed by Morgan Stanley**

**Principal at Risk Securities**

The Buffered PLUS offered 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 25% of the stated principal amount and have the terms described in the accompanying prospectus supplement for PLUS and prospectus, as supplemented or modified by this document. At maturity, if the basket has **appreciated** in value, investors will receive the stated principal amount of their investment plus leveraged upside performance of the basket. If the basket has **remained unchanged** or **depreciated** in value, but the basket has not depreciated in value by more than the specified buffer amount, investors will receive the stated principal amount of their investment. However, if the basket has **depreciated** in value by more than the buffer amount, investors will lose 1% for every 1% decline in the value of the basket beyond the specified buffer amount, subject to the minimum payment at maturity of 25% of the stated principal amount. **Investors may lose up to 75% of the stated principal amount of the Buffered PLUS.** The Buffered PLUS are for investors who seek exposure to a basket of eight commodities and who are willing to risk their principal and forgo current income in exchange for the upside leverage feature and the buffer feature that in each case apply to a limited range of performance of the basket. The Buffered PLUS are notes issued as part of MSFL's Series A Global Medium-Term Notes program.

**All payments are subject to our credit risk. If we default on our obligations, you could lose some or all of your investment. These Buffered PLUS 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** | **SUMMARY TERMS** |
| **Issuer:** | Morgan Stanley Finance LLC |
| **Guarantor:** | Morgan Stanley |
| **Issue price:** | $1,000 per Buffered PLUS |
| **Stated principal amount:** | $1,000 per Buffered PLUS |
| **Pricing date:** | February 27, 2023 |
| **Original issue date:** | March 2, 2023 (3 business days after the pricing date) |
| **Maturity date:** | March 4, 2026 |
| **Aggregate principal amount:** | $|

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Basket:** | **<u>Basket commodity</u>** | **<u>Bloomberg ticker symbol\*</u>** | **<u>Weighting</u>** | **<u>Initial basket commodity price</u>** |
|  | West Texas Intermediate light sweet crude oil futures contracts ("WTI crude oil") | CL1 | 12.50% | $|
|  | Natural gas ("Natural gas") | NG1 | 12.50% | $|
|  | Corn – CBOT ("corn") | C 1 | 12.50% | ¢ |
|  | Soybeans – CBOT ("soybeans") | S 1 | 12.50% | ¢ |
|  | Sugar #11 (World) - NYBOT ("sugar") | SB1 | 12.50% | ¢ |
|  | Wheat – CBOT ("wheat") | W 1 | 12.50% | ¢ |
|  | Copper grade A ("copper") | LOCADY | 12.50% | $|
|  | Zinc | LOZSDY | 12.50% | $|

---

---

| | | | |
|:---|:---|:---|:---|
|  | \* Bloomberg ticker symbols are being provided for reference purposes only. The initial basket commodity price and the final basket commodity price for each basket commodity will be determined based on the values published by the relevant exchange and, notwithstanding the Bloomberg ticker symbols provided for reference purposes above, such prices (in the case of WTI crude oil, natural gas, corn, soybeans, sugar and wheat) may be based on the second nearby month futures contract, as further described under "Commodity price" on page 2. | \* Bloomberg ticker symbols are being provided for reference purposes only. The initial basket commodity price and the final basket commodity price for each basket commodity will be determined based on the values published by the relevant exchange and, notwithstanding the Bloomberg ticker symbols provided for reference purposes above, such prices (in the case of WTI crude oil, natural gas, corn, soybeans, sugar and wheat) may be based on the second nearby month futures contract, as further described under "Commodity price" on page 2. | \* Bloomberg ticker symbols are being provided for reference purposes only. The initial basket commodity price and the final basket commodity price for each basket commodity will be determined based on the values published by the relevant exchange and, notwithstanding the Bloomberg ticker symbols provided for reference purposes above, such prices (in the case of WTI crude oil, natural gas, corn, soybeans, sugar and wheat) may be based on the second nearby month futures contract, as further described under "Commodity price" on page 2. |
| **Payment at maturity:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For each Buffered PLUS that you hold:<br> ▪ If the basket performance factor is *greater* than 100%: <br> $1,000 + leveraged upside payment<br> ▪ If the basket performance factor is *less than or equal to* 100%, but the basket performance factor is *greater than or equal to* 75%, meaning the basket has decreased in value by an amount less than or equal to the buffer amount of 25%:<br> $1,000 <br> ▪ If the basket performance factor is *less than* 75%, meaning the basket has decreased in value by an amount greater than the buffer amount of 25%:<br> ($1,000 × basket performance factor) + $250 <br> *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 $250 per Buffered PLUS at maturity.* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For each Buffered PLUS that you hold:<br> ▪ If the basket performance factor is *greater* than 100%: <br> $1,000 + leveraged upside payment<br> ▪ If the basket performance factor is *less than or equal to* 100%, but the basket performance factor is *greater than or equal to* 75%, meaning the basket has decreased in value by an amount less than or equal to the buffer amount of 25%:<br> $1,000 <br> ▪ If the basket performance factor is *less than* 75%, meaning the basket has decreased in value by an amount greater than the buffer amount of 25%:<br> ($1,000 × basket performance factor) + $250 <br> *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 $250 per Buffered PLUS at maturity.* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For each Buffered PLUS that you hold:<br> ▪ If the basket performance factor is *greater* than 100%: <br> $1,000 + leveraged upside payment<br> ▪ If the basket performance factor is *less than or equal to* 100%, but the basket performance factor is *greater than or equal to* 75%, meaning the basket has decreased in value by an amount less than or equal to the buffer amount of 25%:<br> $1,000 <br> ▪ If the basket performance factor is *less than* 75%, meaning the basket has decreased in value by an amount greater than the buffer amount of 25%:<br> ($1,000 × basket performance factor) + $250 <br> *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 $250 per Buffered PLUS at maturity.* |
| **Leveraged upside payment:** | $1,000 × leverage factor × basket percent increase | $1,000 × leverage factor × basket percent increase | $1,000 × leverage factor × basket percent increase |
| **Leverage factor:** | 125% | 125% | 125% |
| **Basket percent increase:** | &nbsp;&nbsp;&nbsp;&nbsp;The sum of the products of, with respect to each basket commodity:<br> [(final basket commodity price – initial basket commodity price) / initial basket commodity price] × weighting  | &nbsp;&nbsp;&nbsp;&nbsp;The sum of the products of, with respect to each basket commodity:<br> [(final basket commodity price – initial basket commodity price) / initial basket commodity price] × weighting  | &nbsp;&nbsp;&nbsp;&nbsp;The sum of the products of, with respect to each basket commodity:<br> [(final basket commodity price – initial basket commodity price) / initial basket commodity price] × weighting  |
| **Buffer amount:** | 25%. As a result of the buffer amount of 25%, the basket performance factor must be *greater than or equal to* 75% as of the valuation date so that investors do not suffer a loss on their initial investment in the Buffered PLUS. | 25%. As a result of the buffer amount of 25%, the basket performance factor must be *greater than or equal to* 75% as of the valuation date so that investors do not suffer a loss on their initial investment in the Buffered PLUS. | 25%. As a result of the buffer amount of 25%, the basket performance factor must be *greater than or equal to* 75% as of the valuation date so that investors do not suffer a loss on their initial investment in the Buffered PLUS. |
| **Minimum payment at maturity:** | $250 per Buffered PLUS (25% of the stated principal amount) | $250 per Buffered PLUS (25% of the stated principal amount) | $250 per Buffered PLUS (25% of the stated principal amount) |
| **Basket performance factor:** | &nbsp;&nbsp;&nbsp;&nbsp;The sum (expressed as a percentage) of the products of, with respect to each basket commodity:<br> (final basket commodity price / initial basket commodity price) × weighting  | &nbsp;&nbsp;&nbsp;&nbsp;The sum (expressed as a percentage) of the products of, with respect to each basket commodity:<br> (final basket commodity price / initial basket commodity price) × weighting  | &nbsp;&nbsp;&nbsp;&nbsp;The sum (expressed as a percentage) of the products of, with respect to each basket commodity:<br> (final basket commodity price / initial basket commodity price) × weighting  |
| **Valuation date:** | In respect of each basket commodity, February 27, 2026, subject to adjustment for a non-trading day or a market disruption event in respect of the applicable basket commodity. | In respect of each basket commodity, February 27, 2026, subject to adjustment for a non-trading day or a market disruption event in respect of the applicable basket commodity. | In respect of each basket commodity, February 27, 2026, subject to adjustment for a non-trading day or a market disruption event in respect of the applicable basket commodity. |
| **Interest:** |  |  |  |
| **CUSIP / ISIN:** | 61774FBH4 / US61774FBH47 | 61774FBH4 / US61774FBH47 | 61774FBH4 / US61774FBH47 |
| **No listing:** | The Buffered PLUS will not be listed on any securities exchange. | The Buffered PLUS will not be listed on any securities exchange. | The Buffered PLUS will not be listed on any securities exchange. |
| **Agent:** | Morgan Stanley & Co. LLC ("MS & Co."), an affiliate of MSFL and a wholly owned subsidiary of Morgan Stanley. See "Supplemental information concerning plan of distribution; conflicts of interest." | Morgan Stanley & Co. LLC ("MS & Co."), an affiliate of MSFL and a wholly owned subsidiary of Morgan Stanley. See "Supplemental information concerning plan of distribution; conflicts of interest." | Morgan Stanley & Co. LLC ("MS & Co."), an affiliate of MSFL and a wholly owned subsidiary of Morgan Stanley. See "Supplemental information concerning plan of distribution; conflicts of interest." |
| **Estimated value on the pricing date:** | Approximately $929.30 per Buffered PLUS, or within $49.30 of that estimate. See "Investment Summary" on page 3.  | Approximately $929.30 per Buffered PLUS, or within $49.30 of that estimate. See "Investment Summary" on page 3.  | Approximately $929.30 per Buffered PLUS, or within $49.30 of that estimate. See "Investment Summary" on page 3.  |
|  | ***Terms continued on the following page*** | ***Terms continued on the following page*** | ***Terms continued on the following page*** |
| **Commissions and issue price:** | **Price to public** | **Agent's commissions<sup>(1)</sup>** | **Proceeds to us<sup>(2)</sup>** |
| **Per Buffered PLUS** | $1000 | $2.50  | $997.50  |
| **Total** | $| $| $|

---

*(1)* *Selected dealers and their financial advisors will collectively receive from the agent, MS & Co., a fixed sales commission of $2.50 for each Buffered PLUS they sell. See "Supplemental information concerning plan of distribution; conflicts of interest." For additional information, see "Plan of Distribution (Conflicts of Interest)" in the accompanying prospectus supplement.* 

*(2)* *See "Use of proceeds and hedging" on page 28.* 

**The Buffered PLUS involve risks not associated with an investment in ordinary debt securities. See "Risk Factors" beginning on page 9.**

**The Securities and Exchange Commission and state securities regulators have not approved or disapproved these securities, or determined if this document or the accompanying prospectus supplement and prospectus is truthful or complete. Any representation to the contrary is a criminal offense.<br> The Buffered PLUS 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.<br> You should read this document together with the related prospectus supplement and prospectus, each of which can be accessed via the hyperlinks below. Please also see "Additional Terms of the Buffered PLUS" and "Additional Information About the Buffered PLUS" at the end of this document.**

**As used in this document, "we," "us" and "our" refer to Morgan Stanley or MSFL, or Morgan Stanley and MSFL collectively, as the context requires.**

---

| | |
|:---|:---|
| **[Prospectus Supplement for PLUS dated November 16, 2020](https://www.sec.gov/Archives/edgar/data/895421/000095010320022224/dp140496_424b2-pscplus.htm)** | **[Prospectus dated November 16, 2020](https://www.sec.gov/Archives/edgar/data/895421/000095010320022190/dp140485_424b2-base.htm)** |

---

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

---

| | |
|:---|:---|
| ***Terms continued from previous page:*** | ***Terms continued from previous page:*** |
| **Commodity price:** | For any trading day:<br> <u>WTI crude oil:</u> the official settlement price per barrel of West Texas Intermediate light sweet crude oil on the relevant exchange of the first nearby month futures contract, stated in U.S. dollars, as made public by the relevant exchange on such date, *provided* that if such date falls on the last trading day of such futures contract (all pursuant to the rules of the relevant exchange), then the second nearby month futures contract on such date.<br> <u>Natural gas:</u> the official settlement price per one million British thermal units of natural gas on the relevant exchange of the first nearby month futures contract, stated in U.S. dollars, as made public by the relevant exchange on such date, *provided* that if such date falls on the last trading day of such futures contract (all pursuant to the rules of the relevant exchange), then the second nearby month futures contract on such date.<br> <u>Corn:</u> the official settlement price per bushel of deliverable-grade corn on the relevant exchange of the first nearby month futures contract (or, in the case of any trading day after the date of the last trade of the options contract (if there is more than one options contract, then the options contract with the latest date) pertaining to the first nearby month futures contract, the second nearby month futures contract), stated in U.S. cents, as made public by the relevant exchange on such date.<br> <u>Soybeans:</u> the official settlement price per bushel of deliverable-grade soybeans on the relevant exchange of the first nearby month futures contract (or, in the case of any trading day after the date of the last trade of the options contract (if there is more than one options contract, then the options contract with the latest date) pertaining to the first nearby month futures contract, the second nearby month futures contract), stated in U.S. cents, as made public by the relevant exchange on such date.<br> <u>Sugar:</u> the official settlement price per pound of sugar cane on the relevant exchange of the first nearby month futures contract (or, in the case of any trading day after the date of the last trade of the options contract (if there is more than one options contract, then the options contract with the latest date) pertaining to the first nearby month futures contract, the second nearby month futures contract), stated in U.S. cents, as made public by the relevant exchange on such date.<br> <u>Wheat:</u> the official settlement price per bushel of deliverable-grade wheat on the relevant exchange of the first nearby month futures contract (or, in the case of any trading day after the date of the last trade of the options contract (if there is more than one options contract, then the options contract with the latest date) pertaining to the first nearby month futures contract, the second nearby month futures contract), stated in U.S. cents, as made public by the relevant exchange on such date.<br> <u>Copper:</u> the official cash offer price per tonne of copper grade A on the relevant exchange for the spot market, stated in U.S. dollars, as determined by the relevant exchange on such date.<br> <u>Zinc:</u> the official cash offer price per tonne of special high grade zinc on the relevant exchange for the spot market, stated in U.S. dollars, as determined by the relevant exchange on such date. |
| **Relevant exchange:** | <u>WTI crude oil:</u> the NYMEX Division, or its successor, of the NYMEX<br> <u>Natural gas:</u> the NYMEX Division, or its successor, of the NYMEX<br> <u>Corn:</u> the Chicago Board of Trade<br> <u>Soybeans:</u> the Chicago Board of Trade<br> <u>Sugar:</u> the ICE Futures U.S.<br> <u>Wheat:</u> the Chicago Board of Trade<br> <u>Copper:</u> the London Metal Exchange<br> <u>Zinc:</u> the London Metal Exchange |
| **Initial basket commodity price:** | The commodity price for the applicable basket commodity on the pricing date, as set forth under "Basket—Initial basket commodity price" above. |
| **Final basket commodity price:** | The commodity price for the applicable basket commodity on the valuation date, subject to adjustment for each basket commodity individually in the event of a market disruption event or a non-trading day. |

---

February 2023 Page 2

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

Investment Summary

**Buffered Performance Leveraged Upside Securities** 

**Principal at Risk Securities**

The Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026 (the "Buffered PLUS") can be used:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ To gain access to the basket commodities and provide diversification of underlying asset class exposure

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ As an alternative to direct exposure to the basket commodities that enhances returns for any positive
performance of the basket

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ To enhance returns and outperform the basket in a bullish scenario

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ To achieve similar levels of upside exposure to the basket as a direct investment while using fewer
dollars by taking advantage of the leverage factor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ To obtain a buffer against a specified level of negative performance of the basket

The Buffered PLUS are exposed on a 1:1 basis to the negative performance of the basket beyond the specified buffer amount if the basket performance factor is less than 75%.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Maturity:** | Approximately 3 years |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Leverage factor:** | 125% (applicable only if the basket performance factor is greater than 100%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Buffer amount:** | 25%, with 1:1 downside exposure below the buffer |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Maximum payment at maturity:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Minimum payment at maturity:** | $250 per Buffered PLUS (25% of the stated principal amount). **Investors may lose up to 75% of the stated principal amount of the Buffered PLUS.** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Basket weighting:** | 12.50% for each basket commodity |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Interest:** |  |

---

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 will be less than $1,000. We estimate that the value of each Buffered PLUS on the pricing date will be approximately $929.30, or within $49.30 of that estimate. Our estimate of the value of the Buffered PLUS 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 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 basket commodities. The estimated value of the Buffered PLUS is determined using our own pricing and valuation models, market inputs and assumptions relating to the basket commodities, instruments based on the basket commodities, 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 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 basket commodities, 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.

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.

February 2023 Page 3

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

Key Investment Rationale

Buffered PLUS offer leveraged exposure to a wide variety of assets and asset classes, including equities, commodities and currencies. These investments allow investors to capture enhanced returns relative to the underlier's actual positive performance, while providing limited protection against negative performance of the underlier. In these Buffered PLUS, investors are exposed to the performance of a basket of eight commodities. In addition, in these Buffered PLUS, investors risk their principal and forgo current income in exchange for the upside leverage feature and the buffer feature that in each case apply to a limited range of performance of the basket. At maturity, if the basket has appreciated in value, investors will receive the stated principal amount of their investment plus leveraged upside performance of the basket. If the basket has remained unchanged or depreciated in value, but the basket performance factor is greater than or equal to 75%, meaning the basket has depreciated in value by less than the specified buffer amount, investors will receive the stated principal amount of their investment. However, if the basket has depreciated in value by more than the specified buffer amount so that the basket performance factor is less than 75%, investors will lose 1% for every 1% decline in the value of the basket beyond the specified buffer amount, subject to the minimum payment at maturity. **Investors could lose up to 75% of the stated principal amount of the Buffered PLUS**.

---

| | |
|:---|:---|
| **Access** | The Buffered PLUS offer exposure to an equally-weighted basket of physical commodities, allowing for diversification of underlying asset class exposure from traditional fixed income/U.S. equity investments. |
| **Leveraged Performance** | The Buffered PLUS offer investors an opportunity to capture enhanced returns relative to a direct investment in the basket for any positive performance of the basket. There is no limitation on the appreciation potential. |
| **Upside Scenario** | The basket increases in value and, at maturity, the Buffered PLUS redeem for the stated principal amount of $1,000 *plus* 125% of the increase in the value of the basket. |
| **Par Scenario** | The basket declines in value, but the basket performance factor is greater than or equal to 75%, meaning the basket has declined in value by no more than the buffer amount of 25%. At maturity, the Buffered PLUS redeem for the stated principal amount. |
| **Downside Scenario** | The basket declines in value and the basket performance factor is less than 75%, meaning the basket has declined in value by more than the buffer amount of 25%, and, at maturity, the Buffered PLUS redeem for less than the stated principal amount by an amount that is proportionate to the percentage decrease in the value of the basket, *plus* the buffer amount of 25%. (Example: if the basket declines in value by 50%, the Buffered PLUS will redeem from $750, or 75% of the stated principal amount.) **The minimum payment at maturity is $250 per Buffered PLUS.** |

---

February 2023 Page 4

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

How the Buffered PLUS Work

**Payoff Diagram**

The payoff diagram below illustrates the payment at maturity on the Buffered PLUS based on the following terms:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Stated principal amount:** | $1,000 per Buffered PLUS |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Leverage factor:** | 125% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Buffer amount:** | 25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Maximum payment at maturity:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Minimum payment at maturity:** | $250 per Buffered PLUS |

---

---

| |
|:---|
| **Buffered PLUS Payoff Diagram** |
| ![](image_059.jpg) |

---

**How it works**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Upside Scenario.** If the basket performance
factor is *greater* than 100%, investors would receive the $1,000 stated principal amount plus 125% of the appreciation of the basket
over the term of the Buffered PLUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ For example, if the basket appreciates 10%, the investor would receive a 12.50% return, or $1,125 per Buffered PLUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Par Scenario.** If the basket performance
factor is *less than or equal to* 100%, but is *greater than or equal to* 75%, meaning the basket has declined in value by no
more than the buffer amount of 25%, investors would receive the $1,000 stated principal amount per Buffered PLUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Downside Scenario.** If the basket performance
factor is *less than* 75%, meaning the basket has declined in value by an amount greater than the buffer amount of 25%, investors
would receive a payment at maturity that is less than the stated principal amount by an amount that is proportionate to the percentage
decrease in the value of the basket, *plus* the buffer amount of 25%. The minimum payment at maturity is $250 per Buffered PLUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ For example, if the basket performance factor is 50%, meaning the basket has declined in value by 50%, the investor would lose 25%
of the investor's principal and receive only $750 per Buffered PLUS at maturity, or 75% of the stated principal amount.

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**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

**Calculation of Payment at Maturity**

***Basket Percent Increase Example***

Below is an example of how to calculate the payment at maturity if the basket has appreciated. This example is based on the leverage factor of 125% and the hypothetical data in the table below. The initial and final basket commodity prices below are hypothetical and do not reflect the actual initial or final basket commodity price for any basket commodity. The numbers appearing below may have been rounded for ease of analysis.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Basket commodity** | **Weight in Basket** | **Hypothetical<br> Initial basket commodity price** | **Hypothetical<br> Final basket commodity price** | **Percentage**<br> **Change**<br>|
| WTI crude oil | 12.50% | $100 | $120 | +20% |
| Natural gas | 12.50% | $7.00 | $5.25 | -25% |
| Corn | 12.50% | 800¢ | 880¢ | +10% |
| Soybeans | 12.50% | 1,600¢ | 1,520¢ | -5% |
| Sugar | 12.50% | 20.00¢ | 18.00¢ | -10% |
| Wheat | 12.50% | 1,000¢ | 1,400¢ | +40% |
| Copper | 12.50% | $10000 | $11000 | +10% |
| Zinc | 12.50% | $2000 | $1800 | -10% |

---

**Basket percent increase = sum of the products of (x) the final basket commodity price for each basket commodity *minus* the initial basket commodity price for such basket commodity *divided by* the initial basket commodity price of such basket commodity and (y) the basket commodity weighting for such basket commodity:**

[(final WTI crude oil price – initial WTI crude oil price) / initial WTI crude oil price] × 12.50%; *plus*

[(final natural gas price – initial natural gas price) / initial natural gas price] × 12.50%; *plus*

[(final corn price – initial corn price) / initial corn price] × 12.50%; *plus*

[(final soybeans price – initial soybeans price) / initial soybeans price] × 12.50%; *plus*

[(final sugar price – initial sugar price) / initial sugar price] × 12.50%; *plus*

[(final wheat price – initial wheat price) / initial wheat price] × 12.50%; *plus*

[(final copper price – initial copper price) / initial copper price] × 12.50%; *plus*

[(final zinc price – initial zinc price) / initial zinc price] × 12.50%

***So, using the final basket commodity prices above:***

 ****

***WTI crude oil =*** [($120 - $100) / $100] × 12.50% = 2.50%; *plus*

***Natural gas =*** [($5.25 - $7.00) / $7.00] × 12.50% = -3.125%; *plus*

***corn =*** [(880¢ - 800¢) / 800¢] × 12.50% = 1.25%; *plus*

***soybeans =*** [(1,520¢ - 1,600¢) / 1,600¢] × 12.50% = -0.625%; *plus*

***sugar =*** [(18.00¢ - 20.00¢) / 20.00¢] × 12.50% = -1.25%; *plus*

***wheat =*** [(1,400¢ - 1,000¢) / 1,000¢] × 12.50% = 5.00%; *plus*

***copper =*** [($11,000 - $10,000) / $10,000] × 12.50% = 1.25%; *plus*

***zinc =*** [($1,800 – $2,000) / $2,000] × 12.50% = -1.25%

***which equals***

**basket percentage increase = 3.75%**

***The payment at maturity will equal $1,000 plus the leveraged upside payment. The leveraged upside payment will equal (i) $1,000 times (ii) the basket percent increase times (iii) the leverage factor, or:***

**$1,000 × 3.75% × 125% = $46.875**

**The payment at maturity will equal $1,000 plus the leveraged upside payment, or:**

**$1,000 + $46.875 = $1,046.875**

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**Principal at Risk Securities**

***Par Example***

If the basket performance factor is less than or equal to 100%, but is greater than or equal to 75%, meaning the basket has declined in value by no more than the buffer amount of 25%, investors would receive the $1,000 stated principal amount.

***Basket Performance Factor Example***

Below is an example of how to calculate the payment at maturity if the basket performance factor is less than 75% based on the hypothetical data in the table below. The initial and final basket commodity prices below are hypothetical and do not reflect the actual initial or final basket commodity price for any basket commodity. The numbers appearing below may have been rounded for ease of analysis.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Basket commodity** | **Weight in Basket** | **Hypothetical<br> Initial basket commodity price** | **Hypothetical<br> Final basket commodity price** | **Percentage**<br> **Change**<br>|
| WTI crude oil | 12.50% | $100 | $10 | -90% |
| Natural gas | 12.50% | $7 | $0.70 | -90% |
| Corn | 12.50% | 800¢ | 80¢ | -90% |
| Soybeans | 12.50% | 1,600¢ | 1,680¢ | &nbsp;&nbsp;&nbsp;&nbsp;+5% |
| Sugar | 12.50% | 20.00¢ | 2.00¢ | -90% |
| Wheat | 12.50% | 1,000¢ | 1,100¢ | +10% |
| Copper | 12.50% | $10000 | $10500 | +5% |
| Zinc | 12.50% | $2000 | $2200 | &nbsp;&nbsp;&nbsp;&nbsp;+10% |

---

**Basket performance factor = sum of the products of (x) the final basket commodity price for each basket commodity *divided by* the initial basket commodity price of such basket commodity and (y) the basket commodity weighting for such basket commodity:**

(final WTI crude oil price / initial WTI crude oil price) × 12.50%; *plus*

(final natural gas price / initial natural gas price) × 12.50%; *plus*

(final corn price / initial corn price) × 12.50%; *plus*

(final soybeans price / initial soybeans price) × 12.50%; *plus*

(final sugar price / initial sugar price) × 12.50%; *plus*

(final wheat price / initial wheat price) × 12.50%; *plus*

(final copper price / initial copper price) × 12.50%; *plus*

(final zinc price / initial zinc price) × 12.50%

***So, using the final basket commodity prices above:***

 ****

***WTI crude oil =*** ($10 / $100) × 12.50% = 1.25%; *plus*

***Natural gas =*** ($0.70 / $7.00) × 12.50% = 1.25%; *plus*

***corn =*** (80¢ / 800¢) × 12.50% = 1.25%; *plus*

***soybeans =*** (1,680¢ / 1,600¢) × 12.50% = 13.125%; *plus*

***sugar =*** (2.00¢ / 20.00¢) × 12.50% = 1.25%; *plus*

***wheat =*** (1,100¢ / 1,000¢) × 12.50% = 13.75%; *plus*

***copper =*** ($10,500 / $10,000) × 12.50% = 13.125%; *plus*

***zinc =*** ($2,200 / $2,000) × 12.50% = 13.75%

***which equals***

**basket performance factor = 58.75%**

In the above example, the final basket commodity price of each of soybeans, wheat, copper and zinc is higher than its respective initial basket commodity price, but the final basket commodity price of each of WTI crude oil, natural gas, corn and

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**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

sugar is lower than its respective initial basket commodity price. Accordingly, although the final basket commodity prices of 50.00% of the basket commodities (by weight) have increased in value over their respective initial basket commodity prices, the final basket commodity prices of the other 50.00% (by weight) of the basket have declined and, because they have declined significantly, their declines more than offset the increases in the other basket commodities and, consequently, the basket performance factor is less than 75%. Since the basket has declined in value by more than the buffer amount of 25%, the payment at maturity per Buffered PLUS will equal $1,000 times the basket performance factor, *plus* the buffer amount of 25%; or

**($1,000 × 58.75%) + $250 = $837.50**

***The payment at maturity per Buffered PLUS will be $837.50, which is less than the stated principal amount by an amount that is proportionate to the percentage decline in the basket beyond the buffer amount.***

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**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

Risk Factors

*This section describes the material risks relating to the Buffered PLUS. For further discussion of these and other risks, you should read the section entitled "Risk Factors" in the accompanying prospectus supplement for PLUS 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.*

<u>Risks Relating to an Investment in the Buffered PLUS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **The Buffered PLUS do not pay interest and provide a minimum payment at maturity of only 25% of your principal.** 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 25% of the stated principal amount of the Buffered PLUS, subject to our credit risk. If the basket performance factor
is less than 75%, you will receive for each Buffered PLUS that you hold a payment at maturity that is less than the stated principal amount
of each Buffered PLUS, and this decrease will be by an amount proportionate to the decline in the basket value from its initial value, *plus* $250 per Buffered PLUS. **Accordingly, investors may lose up to 75% of the stated principal amount of the Buffered PLUS**. See "How the Buffered PLUS Work" on page 5 above.

&nbsp;&nbsp;&nbsp;&nbsp;▪ **The market price of the Buffered PLUS may be influenced by many unpredictable factors.** Several factors, many of which are beyond
our control, will influence the value of the Buffered PLUS in the secondary market and the price at which we or certain of our affiliates,
including Morgan Stanley & Co. LLC ("MS & Co."), may be willing to purchase or sell the Buffered PLUS in the secondary
market, including: the price of each of the basket commodities at any time and, in particular, on the valuation date, the volatility (frequency
and magnitude of changes in value) of each of the basket commodities, interest and yield rates in the market, geopolitical conditions
and economic, financial, political, regulatory or judicial events that affect the basket commodities or commodities markets in general
and which may affect the final basket commodity prices of the basket commodities, trends of supply and demand for the basket commodities,
as well as the effects of speculation or any government activity that could affect the commodities markets, the time remaining until the
Buffered PLUS mature and any actual or anticipated changes in our credit ratings or credit spreads. In addition, the commodities markets
are subject to temporary distortions or other disruptions due to various factors, including lack of liquidity, participation of speculators
and government intervention. As a result, the market value of the Buffered PLUS will vary and may be less than the original issue price
at any time prior to maturity and sale of the Buffered PLUS prior to maturity may result in a loss.

&nbsp;&nbsp;&nbsp;&nbsp;▪ **The** **Buffered PLUS 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 PLUS.** 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 our 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 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 .

&nbsp;&nbsp;&nbsp;&nbsp;▪ **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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **The amount payable on the Buffered PLUS is not linked to the commodity prices at any time other than the valuation date.** The
final basket commodity price for each basket commodity will be based on the commodity price

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**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

for such basket commodity on the valuation date, subject to adjustment for non-trading days and certain market disruption events. Even if the basket appreciates prior to the valuation date but then drops by the valuation date so that the basket performance factor is less than 75%, the payment at maturity will be less, and may be significantly less, than it would have been had the payment at maturity been linked to the basket commodity prices prior to such drop. Although the actual commodity price of one or more basket commodities on the stated maturity date or at other times during the term of the Buffered PLUS may be higher than the final basket commodity for such basket commodity, the payment at maturity will be based solely on the commodity price of each basket commodity on the valuation date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Investing in the Buffered PLUS is not equivalent to investing directly in the basket commodities or in futures contracts or forward contracts on the basket commodities.** Investing in the Buffered PLUS is not equivalent to investing directly in any of the basket commodities
or in futures contracts or forward contracts on any of the basket commodities. By purchasing the Buffered PLUS, you do not purchase any
entitlement to any of the basket commodities or futures contracts or forward contracts on any of the basket commodities. Further, by purchasing
the Buffered PLUS, you are taking credit risk to us and not to any counter-party to futures contracts and forward contracts on any of
the basket commodities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **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 PLUS in the original issue price reduce the economic terms of the Buffered PLUS, cause the estimated value of the Buffered PLUS 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 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 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 Buffered PLUS in the original issue price and the lower rate we are willing to pay as issuer make the economic terms of the Buffered PLUS less favorable to you than they otherwise would be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **The estimated value of the Buffered PLUS 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 Buffered PLUS than those generated by others, including other dealers in the market, if they attempted to value the Buffered PLUS.
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 Buffered PLUS in the secondary market (if any exists) at any time. The value of your Buffered PLUS
at any time after the date of this pricing supplement 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 will be influenced by many unpredictable factors"
above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **The Buffered PLUS will not be listed on any securities exchange and secondary trading may be limited.** The Buffered PLUS will
not be listed on any securities exchange. Therefore, there may be little or no secondary market for the Buffered PLUS. 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.
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 Buffered PLUS, 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 Buffered PLUS. Even if there is a secondary market, it may not provide enough liquidity to allow you to
trade or sell the Buffered PLUS easily. Since other broker-dealers may not participate significantly in the secondary market for the Buffered
PLUS, the price at which you may be able to trade your Buffered PLUS 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

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**Principal at Risk Securities**

market in the Buffered PLUS, it is likely that there would be no secondary market for the Buffered PLUS. Accordingly, you should be willing to hold your Buffered PLUS to maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **The calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL, will make determinations with respect to the Buffered PLUS.** As calculation agent, Morgan Stanley Capital Group Inc. ("MSCG") will determine the initial basket
commodity price and final basket commodity price of each basket commodity, the basket performance factor or the basket percent increase,
as applicable, and calculate the amount of cash you will receive at maturity. Moreover, certain determinations made by MSCG, 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 calculation of any settlement price in the event of a market disruption event. These potentially subjective
determinations may affect the payout to you at maturity. For further information regarding these types of determinations, see "Description
of PLUS―Postponement of Valuation Date(s)", "―Calculation Agent and Calculations" and related definitions
in the accompanying prospectus supplement for PLUS. In addition, MS & Co. has determined the estimated value of the Buffered PLUS
on the pricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Hedging and trading activity by our subsidiaries could potentially adversely affect the value of the Buffered PLUS.** One
or more of our subsidiaries and/or third-party dealers expect to carry out hedging activities related to the Buffered PLUS (and possibly
to other instruments linked to the basket commodities), including trading in the basket commodities, futures and options contracts on
the basket commodities as well as other instruments related to such basket commodities. Some of our subsidiaries also trade in the
basket commodities, futures contracts on the basket commodities and other financial instruments related to the basket commodities on a
regular basis as part of their general commodity trading, proprietary trading and other businesses. Any of these hedging or trading
activities on or prior to the pricing date could potentially increase the initial basket commodity prices of the basket commodities and,
as a result, could increase the prices at which the basket commodities must close on the valuation date so that you do not suffer a loss
on your initial investment in the Buffered PLUS. Additionally, such hedging or trading activities during the term of the Buffered
PLUS, including on the valuation date, could adversely affect the prices of the basket commodities on the valuation date, and, accordingly,
the amount of cash you will receive at maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **The U.S. federal income tax consequences of an investment in the Buffered PLUS are uncertain.** Please read the discussion under
"Additional provisions—Tax considerations" in this document and the discussion under "United States Federal Taxation"
in the accompanying prospectus supplement for PLUS (together, the "Tax Disclosure Sections") concerning the U.S. federal income
tax consequences of an investment in the Buffered PLUS. If the Internal Revenue Service (the "IRS") were successful in asserting
an alternative treatment, the timing and character of income on the Buffered PLUS 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 Buffered PLUS as debt
instruments. In that event, U.S. Holders would be required to accrue into income original issue discount on the Buffered PLUS every year
at a "comparable yield" determined at the time of issuance and recognize all income and gain in respect of the Buffered PLUS
as ordinary income. The risk that financial instruments providing for buffers, triggers or similar downside protection features, such
as the Buffered PLUS, 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 Buffered PLUS, 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 Buffered PLUS, 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

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**Principal at Risk Securities**

an investment in the Buffered PLUS, 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.

<u>Risks Relating to the Basket Components</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Changes in the price of one or more of the basket commodities may offset each other.** Price movements in the basket commodities
may not correlate with each other. At a time when the price of one basket commodity increases, the price of the other basket commodities
may not increase as much, or may even decline. Therefore, in calculating the performance of the basket commodities on the valuation date,
increases in the price of one basket commodity may be moderated, or wholly offset, by lesser increases or declines in the price of the
other basket commodities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Specific commodities' prices are volatile and are affected by numerous factors specific to each market.** Investments,
such as the Buffered PLUS, linked to the prices of commodities, such as the basket commodities, are subject to sharp fluctuations in the
prices of commodities over short periods of time for a variety of factors, including the principal factors set out below:

*WTI crude oil*. Demand for refined petroleum products by consumers, as well as by the agricultural, manufacturing and transportation industries, affects the price of crude oil. Crude oil's end-use as a refined product is often as transport fuel, industrial fuel and in-home heating fuel. Potential for substitution in most areas exists, although considerations including relative cost often limit substitution levels. Because the precursors of demand for petroleum products are linked to economic activity, demand will tend to reflect economic conditions. Demand is also influenced by government regulations, such as environmental or consumption policies. In addition to general economic activity and demand, prices for crude oil are affected by political events, labor activity, developments in production technology such as fracking and, in particular, direct government intervention (such as embargos) or supply disruptions in major oil producing regions of the world. Such events tend to affect oil prices worldwide, regardless of the location of the event. Supply for crude oil may increase or decrease depending on many factors. These include production decisions by the Organization of the Petroleum Exporting Countries and other crude oil producers. In the event of sudden disruptions in the supplies of oil, such as those caused by war, natural events, accidents, acts of terrorism or cyberattacks, prices of oil futures contracts could become extremely volatile and unpredictable. Also, sudden and dramatic changes in the futures market may occur, for example, upon a cessation of hostilities that may exist in countries producing oil, the introduction of new or previously withheld supplies into the market or the introduction of substitute products or commodities. WTI crude oil is also subject to the risk that it has demonstrated a lack of correlation with world crude oil prices due to structural differences between the U.S. market for crude oil and the international market for crude oil. As a result, the price of WTI crude oil may be more volatile than world crude oil prices generally.

In addition, the prices of WTI crude oil futures contracts may be near zero, zero or negative, which can occur rapidly and unexpectedly. For example, in April 2020, a collapse of demand for fuel contributed to an oversupply of crude oil that rapidly filled most available oil storage facilities. Storage shortages meant that market participants that had contracted to buy and take delivery of crude oil were at risk of default under the terms of the May 2020 NYMEX WTI crude oil futures contract. The scarcity of storage resulted in some market participants selling their futures contracts at a negative price (effectively paying another market participant to accept delivery of the crude oil referenced by the relevant contracts). As a result, for the first time in history, crude oil futures contracts traded below zero. On April 20, 2020, the last trading day before expiration of the May 2020 WTI crude oil futures contract, prices of that contract fell to negative $37.63. See "Basket Overview." If a basket commodity reaches a near-zero, zero or negative price, the value of the Buffered PLUS will be adversely affected and you may lose a significant portion of your initial investment in the Buffered PLUS.

*Natural gas.* Natural gas is used primarily for residential and commercial heating and in the production of electricity. Natural gas has also become an increasingly popular source of energy in the United States, both for consumers and industry. However, because natural gas can be used as a substitute for coal and oil in certain circumstances, the price of coal and oil influence the price of natural gas. The level of global industrial activity influences the demand for natural gas. The demand for natural gas has traditionally been cyclical, with higher demand during the winter months and lower demand during relatively warmer summer months.

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Seasonal temperatures in countries throughout the world can also heavily influence the demand for natural gas. The world's supply of natural gas is concentrated in the former Soviet Union, the Middle East, Europe and Africa. In general, the supply of natural gas is based on competitive market forces. Inadequate supply at any one time leads to price increases, which signal to production companies the need to increase the supply of natural gas to the market. The ability of production companies to supply natural gas, however, is dependent on a number of factors. Factors that affect the short term supply of natural gas include the availability of skilled workers and equipment, permitting and well development, as well as weather and delivery disruptions (e.g., hurricanes, labor strikes and wars). In addition, production companies face more general barriers to their ability to increase the supply of natural gas, including access to land, the expansion of pipelines and the financial environment. These factors, which are not exhaustive, are interrelated and can have complex and unpredictable effects on the supply for, and the price of, natural gas.

*Corn.* The demand for corn is in part linked to the development of industrial and energy uses for corn. This includes the use of corn in the production of ethanol. The demand for corn is also affected by the production and profitability of the pork and poultry sectors, which use corn for feed. Negative developments in those industries may lessen the demand for corn. For example, if avian flu were to have a negative effect on world poultry markets, the demand for corn might decrease. The supply of corn is dependent on many factors including weather patterns, government regulation, the price of fuel and fertilizers and the current and previous price of corn. The United States is the world's largest supplier of corn, followed by China and Brazil. The supply of corn is particularly sensitive to weather patterns in the United States and China. In addition, technological advances could lead to increases in worldwide production of corn and corresponding decreases in the price of corn.

*Soybeans.* Demand for soybeans is in part linked to the development of agricultural, industrial and energy uses for soybeans. In addition, prices for soybeans are affected by governmental programs and policies regarding agriculture and trade specifically, and trade, fiscal and monetary issues, more generally. Soybean prices are also affected by extrinsic factors such as weather, crop yields, natural disasters, pestilence, technological developments, wars and political and civil upheavals. Soy biodiesel, animal agriculture, vegetable oil, edible soybean oil and new industrial uses are examples of major areas that may impact worldwide soybean demand. In addition, substitution of other commodities for soybeans could also impact the price of soybeans. The supply of soybeans is particularly sensitive to weather patterns such as floods, drought and freezing conditions, planting decisions and the price of fuel, seeds and fertilizers. In addition, technological advances and scientific developments could lead to increases in worldwide production of soybeans and corresponding decreases in the price of soybeans. The United States, Argentina and Brazil are the three largest suppliers of soybean crops.

*Sugar.* Global prices for sugar are primarily affected by the global demand for and supply of sugar, but are also significantly influenced by governmental policy and international trade agreements, by speculative actions and by currency exchange rates. Sugar is used primarily as a human food sweetener, but is also used in the production of fuel ethanol. Global demand for sugar is influenced by the level of human consumption of sweetened food-stuffs and beverages and, to a lesser extent, by the level of demand for sugar as the basis for fuel ethanol. The world export supply of sugar is dominated by the European Union, Brazil, Guatemala, Cuba, Thailand and Australia, while other countries, including India, the United States, Canada and Russia produce significant amounts of sugar for domestic consumption. Governmental programs and policies regarding agriculture and energy (including price supports and trade restrictions), and regulating sugar content or changing product labeling, specifically, and trade, fiscal and monetary issues, more generally, in these countries, in other large markets and at a multinational level could affect the supply and price of sugar. Sugar prices are also affected by factors such as weather, growing conditions, crop yields, disease and natural disasters.

*Wheat.* Wheat prices are primarily affected by weather and crop growing conditions generally and the global demand for and supply of grain, which are driven by global grain production, population growth and economic activity. Demand for wheat is in part linked to the development of agricultural, industrial and energy uses for wheat including the use of wheat for the production of animal feed and bioethanol, which may have a major impact on worldwide demand for wheat. In addition, prices for wheat are affected by governmental and intergovernmental programs and policies regarding trade, agriculture, and energy and, more generally,

February 2023 Page 13

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Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

regarding fiscal and monetary issues. Wheat prices may also be influenced by or dependent on retail prices, social trends, lifestyle changes and market power. Substitution of other commodities for wheat could also impact the price of wheat. The supply of wheat is particularly sensitive to weather patterns such as floods, drought and freezing conditions, planting decisions, the price of fuel, seeds and fertilizers and the current and previous price of wheat. In addition, technological advances and scientific developments could lead to increases in worldwide production of wheat and corresponding decreases in the price of wheat. Extrinsic factors affecting wheat prices include natural disasters, pestilence, wars and political and civil upheavals. China, India and the United States are the three largest suppliers of wheat crops.

*Copper*. Demand for copper is significantly influenced by the level of global industrial economic activity. Industrial sectors which are particularly important to demand for copper include the electrical and construction sectors. In recent years demand has been supported by strong consumption from newly industrializing countries due to their copper-intensive economic growth and infrastructure development. An additional, but highly volatile, component of demand is adjustments to inventory in response to changes in economic activity and/or pricing levels. There are substitutes for copper in various applications. Their availability and price will also affect demand for copper. The main sources of copper are mines in Latin America and Eastern Europe and copper is refined mainly in Latin America, Australia and Asia. The supply of copper is also affected by current and previous price levels, which will influence investment decisions in new smelters. In previous years, copper supply has been affected by strikes, financial problems and terrorist activity. It is not possible to predict the aggregate effect of all or any combination of these factors. See "Basket Overview."

*Zinc.* Demand for zinc is significantly influenced by the level of global industrial economic activity. The galvanized steel industrial sector is particularly important to demand for zinc given that the use of zinc in the manufacture of galvanized steel accounts for a significant percentage of worldwide zinc demand. The galvanized steel sector is in turn heavily dependent on the automobile and construction sectors. Growth in the production of galvanized steel will drive zinc demand. An additional, but highly volatile, component of demand is adjustments to inventory in response to changes in economic activity and/or pricing levels. The supply of zinc concentrate (the raw material) is dominated by Australia, North America and Latin America. The supply of zinc is also affected by current and previous price levels, which will influence investment decisions in new mines and smelters.

Additionally, recently, prior to and since Russia's further invasion of Ukraine, the prices of oil and wheat, including the prices of WTI crude oil futures contracts and wheat futures contracts, have been volatile and increased significantly. This conflict has led to disruptions in the supply of oil and the supply of wheat and caused fluctuations in the price of oil and the price of wheat, and changing geopolitical conditions and political events in Europe, the Middle East and elsewhere are likely to cause continued volatility in the price of oil and the price of wheat. In addition, on March 8, 2022, the U.S. Government issued an executive order banning the import of Russian oil to the United States. The U.S. Congress has also passed legislation to ban imports of Russian oil. These actions, and similar governmental, regulatory or legislative actions in the United States or in other jurisdictions, including, without limitation, sanctions-related actions by the U.S. or foreign governments, could cause prices of oil futures contracts and wheat futures contracts to become even more volatile and unpredictable. Any of these developments could adversely affect the price of WTI crude oil futures and wheat futures, and, therefore, the value of the Buffered PLUS and the payment at maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Suspensions or disruptions of market trading in commodity and related futures markets may adversely affect the price of the Buffered PLUS.** The commodity markets are subject to temporary distortions or other disruptions due to various
factors, including the lack of liquidity in the markets, the participation of speculators and government regulation and intervention.
In addition, U.S. futures exchanges and some foreign exchanges have regulations that limit the amount of fluctuation in futures contract
prices which may occur during a single business day. These limits are generally referred to as "daily price fluctuation limits"
and the maximum or minimum price of a contract on any given day as a result of these limits is referred to as a "limit price."
Once the limit price has been reached in a particular contract, no trades may be made at a different price. Limit prices have the effect
of precluding trading in a particular contract or forcing the liquidation of contracts at disadvantageous times or prices. These circumstances
could adversely affect the prices of some of the basket commodities and, therefore, the value of the Buffered PLUS.

February 2023 Page 14

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **There are risks relating to the trading of metals on the London Metal Exchange.** The
official cash offer price of copper is determined by reference to the per unit U.S. dollar cash offer prices of contracts traded on the
London Metal Exchange, which we refer to as the LME. The LME is a principals' market which operates in a manner more closely analogous
to the over-the-counter physical commodity markets than regulated futures markets. For example, there are no daily price limits on the
LME, which would otherwise restrict the extent of daily fluctuations in the prices of LME contracts. In a declining market, therefore,
it is possible that prices would continue to decline without limitation within a trading day or over a period of trading days. In addition,
a contract may be entered into on the LME calling for delivery on any day from one day to three months following the date of such contract
and for monthly delivery in any of the next 16 to 24 months (depending on the commodity) following such third month, in contrast to trading
on futures exchanges, which call for delivery in stated delivery months. As a result, there may be a greater risk of a concentration of
positions in LME contracts on particular delivery dates, which in turn could cause temporary aberrations in the prices of LME contracts
for certain delivery dates. If such aberrations occur on any valuation date, the per unit U.S. dollar cash offer prices used to determine
the official cash offer price of copper, and consequently, your payment at maturity could be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **An investment linked to commodity futures contracts is not equivalent to an investment linked to the spot prices of physical commodities.** The Buffered PLUS have returns based on the change in price of futures contracts on WTI crude oil, natural
gas, corn, soybeans, sugar and wheat, not the change in the spot price of actual physical commodities to which such futures contracts
relate. The price of a futures contract reflects the expected value of the commodity upon delivery in the future, whereas the price of
a physical commodity reflects the value of such commodity upon immediate delivery, which is referred to as the spot price. Several factors
can result in differences between the price of a commodity futures contract and the spot price of a commodity, including the cost of storing
such commodity for the length of the futures contract, interest costs related to financing the purchase of such commodity and expectations
of supply and demand for such commodity. While the changes in the price of a futures contract are usually correlated with the changes
in the spot price, such correlation is not exact. In some cases, the performance of a commodity futures contract can deviate significantly
from the spot price performance of the related underlying commodity, especially over longer periods of time. Accordingly, investments
linked to the return of commodities futures contracts may underperform similar investments that reflect the spot price return on physical
commodities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Differences between futures prices and the spot prices of the physical commodities which, in part, compose the basket may decrease the amount payable at maturity.** The commodity prices that are used to determine the initial basket commodity prices and the final
basket commodity prices for the physical commodities which, in part, compose the basket and, therefore, the payment at maturity on the
Buffered PLUS are determined by reference to the settlement prices of the first nearby month futures contract for each such commodity
on the pricing date and valuation date, respectively, *provided* that if such date falls on the last trading day of such futures
contract, then the second nearby month futures contract on such date, and will not therefore reflect the spot prices of such physical
commodities on such dates. The market for futures contracts on the basket commodities has experienced periods of backwardation, in which
futures prices are lower than the spot price, and periods of contango, in which futures prices are higher than the spot price. If the
contract for any basket commodity is in contango on the pricing date or in backwardation on the valuation date, the payment at maturity
payable on the maturity date, may be less than if the initial commodity price or the final commodity price for such basket commodity,
respectively, were determined with reference to the spot price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Legal and regulatory changes could adversely affect the return on and value of the Buffered PLUS.** Futures contracts and options
on futures contracts, including those related to the basket commodities, are subject to extensive statutes, regulations, and margin requirements.
The Commodity Futures Trading Commission, commonly referred to as the "CFTC," and the exchanges on which such futures contracts
trade, are authorized to take extraordinary actions in the event of a market emergency, including, for example, the retroactive implementation
of speculative position limits or higher margin requirements, the establishment of daily limits and the suspension of trading. Furthermore,
certain exchanges have regulations that limit the amount of fluctuations in futures contract prices that may occur during a single five-minute
trading period. These limits could adversely affect the market prices of relevant futures and options contracts and forward contracts.
The regulation of commodity transactions in the U.S. is subject to ongoing modification by government and judicial action. In addition,
various non-U.S. governments have expressed concern regarding the disruptive effects of speculative trading in the commodity markets and
the need to regulate the

February 2023 Page 15

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

derivative markets in general. The effect on the value of the Buffered PLUS of any future regulatory change is impossible to predict, but could be substantial and adverse to the interests of holders of the Buffered PLUS.

For example, the Dodd-Frank Act, which was enacted on July 21, 2010, requires the CFTC to establish limits on the amount of positions that may be held by any person in certain commodity futures contracts and swaps, futures and options that are economically equivalent to such contracts. While the effects of these or other regulatory developments are difficult to predict, when adopted, such rules may have the effect of making the markets for commodities, commodity futures contracts, options on futures contracts and other related derivatives more volatile and over time potentially less liquid. Such restrictions may force market participants, including us and our affiliates, or such market participants may decide, to sell their positions in such futures contracts and other instruments subject to the limits. If this broad market selling were to occur, it would likely lead to declines, possibly significant declines, in commodity prices, in the price of such commodity futures contracts or instruments and potentially, the value of the Buffered PLUS.

February 2023 Page 16

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

Basket Overview

The basket is an equally-weighted basket composed of eight commodities.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Basket commodity information as of February 17, 2023** | **Basket commodity information as of February 17, 2023** | **Basket commodity information as of February 17, 2023** | **Basket commodity information as of February 17, 2023** | **Basket commodity information as of February 17, 2023** | **Basket commodity information as of February 17, 2023** | **Basket commodity information as of February 17, 2023** |
| **Basket Commodity** | **Bloomberg Ticker Symbol\*** | **Current Price** | **52 Weeks Ago** | **52 Week High** | **52 Week Low** | **Weighting** |
| **WTI crude oil** | **CL1** | $76.34 | $91.76 | $123.70 (on 3/8/2022) | $71.02 (on 12/9/2022) | 12.50% |
| **Natural gas** | **NG1** | $2.2750 | $4.4860 | $9.6800 (on 8/22/2022) | $2.2750 (on 2/17/2023) | 12.50% |
| **Corn** | **C 1** | 677.75¢ | 650.00¢ | 818.25¢ (on 4/29/2022) | 564.25¢ (on 7/22/2022) | 12.50% |
| **Soybeans** | **S 1** | 1,527.25¢ | 1,592.00¢ | 1,769.00¢ (on 6/9/2022) | 1,358.00¢ (on 10/6/2022) | 12.50% |
| **Sugar** | **SB1** | 21.41¢ | 18.28¢ | 21.76¢ (on 1/31/2023) | 17.40¢ (on 7/27/2022) | 12.50% |
| **Wheat** | **W 1** | 765.50¢ | 798.00¢ | 1,425.25¢ (on 3/7/2022) | 705.50¢ (on 12/6/2022) | 12.50% |
| **Copper** | **LOCADY** | $8871.00 | $10010.00 | $10,730.00 (on 3/7/2022) | $7,000.00 (on 7/15/2022) | 12.50% |
| **Zinc** | **LOZSDY** | $3037.00 | $3621.00 | $4,530.00 (on 4/19/2022) | $2,682.00 (on 11/3/2022) | 12.50% |

---

\* Bloomberg ticker symbols are being provided for reference purposes only. The initial basket commodity price and the final basket commodity price for each basket commodity will be determined based on the values published by the relevant exchange and, notwithstanding the Bloomberg ticker symbols provided for reference purposes above, such prices (in the case of WTI crude oil, natural gas, corn, soybeans, sugar and wheat) may be based on the second nearby month futures contract, as further described under "Commodity price" on page 2.

The following graph is calculated to show the performance of the basket during the period from January 1, 2018 through February 17, 2023, assuming the basket commodities are weighted as set out above, and illustrates the effect of the offset and/or correlation among the basket commodities during such period. The graph does not take into account the leverage factor on the Buffered PLUS, nor does it attempt to show your expected return on an investment in the Buffered PLUS. You cannot predict the future performance of any basket commodity or of the basket as a whole, or whether increases in the price of any basket commodity will be offset by decreases in the prices of the other basket commodities. The historical performance of the basket and the degree of correlation between the price trends of the basket commodities (or lack thereof) should not be taken as an indication of its future performance.

**Historical Basket Performance**<br> **January 1, 2018 through February 17, 2023**<br>

February 2023 Page 17

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

The following graphs set forth the daily prices for each of the basket commodities for each quarter in the period from January 1, 2018 through February 17, 2023. The related tables set forth the published high and low, as well as end-of-quarter, prices for each respective basket commodity for the same period. The commodity prices on February 17, 2023 were, in the case of WTI crude oil, $76.34, in the case of natural gas, $2.2750, in the case of corn – CBOT, 677.75¢, in the case of soybeans – CBOT, 1,527.25¢, in the case of sugar, 21.41¢, in the case of wheat – CBOT, 765.50¢, in the case of copper, $8,871.00 and in the case of zinc, $3,037.00. We obtained the information in the tables and graphs from Bloomberg Financial Markets, without independent verification. The historical prices and historical performance of the basket commodities should not be taken as an indication of future performance. We cannot give you any assurance that the basket performance factor will be greater than or equal to 75% so that you do not suffer a loss on your initial investment in the Buffered PLUS.

**Daily Prices of WTI Crude Oil<br> January 1, 2018 through February 17, 2023**

---

| | | | |
|:---|:---|:---|:---|
| **WTI Crude Oil (in U.S. dollars)** | **High ($)** | **Low ($)** | **Period End ($)** |
| **2018** |  |  |  |
| First Quarter | 66.14 | 59.19 | 64.94 |
| Second Quarter | 74.15 | 62.06 | 74.15 |
| Third Quarter | 74.14 | 65.01 | 73.25 |
| Fourth Quarter | 76.41 | 42.53 | 45.41 |
| **2019** |  |  |  |
| First Quarter | 60.14 | 46.54 | 60.14 |
| Second Quarter | 66.30 | 51.14 | 58.47 |
| Third Quarter | 62.90 | 51.09 | 54.07 |
| Fourth Quarter | 61.72 | 52.45 | 61.06 |
| **2020** |  |  |  |
| First Quarter | 63.27 | 20.09 | 20.48 |
| Second Quarter | 40.46 | -37.63 | 39.27 |
| Third Quarter | 43.39 | 36.76 | 40.22 |
| Fourth Quarter | 49.10 | 35.79 | 48.52 |
| **2021** |  |  |  |
| First Quarter | 66.09 | 47.62 | 59.16 |
| Second Quarter | 74.05 | 58.65 | 73.47 |
| Third Quarter | 75.45 | 62.32 | 75.03 |
| Fourth Quarter | 84.65 | 65.57 | 75.21 |
| **2022** |  |  |  |
| First Quarter | 123.70 | 76.08 | 100.28 |
| Second Quarter | 122.11 | 94.29 | 105.76 |
| Third Quarter | 108.43 | 76.71 | 79.49 |
| Fourth Quarter | 92.64 | 71.02 | 80.26 |
| **2023** |  |  |  |
| First Quarter (through February 17, 2023) | 81.62 | 72.84 | 76.34 |

---

February 2023 Page 18

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

**The prices of WTI crude oil futures contracts may be near zero, zero or negative, which can occur rapidly and unexpectedly.** In April 2020, crude oil futures contracts traded below zero. See "Risk Factors—Specific commodities' prices are volatile and are affected by numerous factors specific to each market—WTI crude oil."

February 2023 Page 19

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

**Daily Prices of Natural Gas<br> January 1, 2018 through February 17, 2023**

---

| | | | |
|:---|:---|:---|:---|
| **Natural Gas (in U.S. dollars)** | **High ($)** | **Low ($)** | **Period End ($)** |
| **2018** |  |  |  |
| First Quarter | 3.6310 | 2.5520 | 2.7330 |
| Second Quarter | 3.0220 | 2.6560 | 2.9240 |
| Third Quarter | 3.0820 | 2.7210 | 3.0080 |
| Fourth Quarter | 4.8370 | 2.9400 | 2.9400 |
| **2019** |  |  |  |
| First Quarter | 3.5910 | 2.5510 | 2.6620 |
| Second Quarter | 2.7080 | 2.1850 | 2.3080 |
| Third Quarter | 2.6810 | 2.0700 | 2.3300 |
| Fourth Quarter | 2.8620 | 2.1580 | 2.1890 |
| **2020** |  |  |  |
| First Quarter | 2.2020 | 1.6020 | 1.6400 |
| Second Quarter | 2.1340 | 1.4820 | 1.7510 |
| Third Quarter | 2.6570 | 1.6410 | 2.5270 |
| Fourth Quarter | 3.3540 | 2.3050 | 2.5390 |
| **2021** |  |  |  |
| First Quarter | 3.2190 | 2.4460 | 2.6080 |
| Second Quarter | 3.6500 | 2.4560 | 3.6500 |
| Third Quarter | 5.8670 | 3.5960 | 5.8670 |
| Fourth Quarter | 6.3120 | 3.5610 | 3.7300 |
| **2022** |  |  |  |
| First Quarter | 6.2650 | 3.7170 | 5.6420 |
| Second Quarter | 9.3220 | 5.4240 | 5.4240 |
| Third Quarter | 9.6800 | 5.5100 | 6.7660 |
| Fourth Quarter | 7.3080 | 4.4750 | 4.4750 |
| **2023** |  |  |  |
| First Quarter (through February 17, 2023) | 4.4750 | 2.2750 | 2.2750 |

---

February 2023 Page 20

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

**Daily Prices of Corn<br> January 1, 2018 to February 17, 2023**

---

| | | | |
|:---|:---|:---|:---|
| **Corn (in U.S. cents)** | **High (¢)** | **Low (¢)** | **Period End (¢)** |
| **2018** |  |  |  |
| First Quarter | 387.75 | 346.25 | 387.75 |
| Second Quarter | 408.50 | 345.00 | 350.25 |
| Third Quarter | 372.25 | 330.25 | 356.25 |
| Fourth Quarter | 385.50 | 356.00 | 375.00 |
| **2019** |  |  |  |
| First Quarter | 383.00 | 352.50 | 356.50 |
| Second Quarter | 454.75 | 342.50 | 420.25 |
| Third Quarter | 449.50 | 340.75 | 388.00 |
| Fourth Quarter | 397.75 | 357.75 | 387.75 |
| **2020** |  |  |  |
| First Quarter | 393.75 | 335.25 | 340.75 |
| Second Quarter | 338.50 | 302.75 | 338.50 |
| Third Quarter | 379.00 | 307.75 | 379.00 |
| Fourth Quarter | 484.00 | 379.50 | 484.00 |
| **2021** |  |  |  |
| First Quarter | 565.00 | 483.75 | 564.25 |
| Second Quarter | 772.75 | 553.25 | 720.00 |
| Third Quarter | 719.75 | 495.75 | 536.75 |
| Fourth Quarter | 614.75 | 512.25 | 593.25 |
| **2022** |  |  |  |
| First Quarter | 764.50 | 587.50 | 748.75 |
| Second Quarter | 818.25 | 727.00 | 743.75 |
| Third Quarter | 781.25 | 564.25 | 677.50 |
| Fourth Quarter | 698.25 | 625.50 | 678.50 |
| **2023** |  |  |  |
| First Quarter (through February 17, 2023) | 685.25 | 652.75 | 677.75 |

---

February 2023 Page 21

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

**Daily Prices of Soybeans<br> January 1, 2018 to February 17, 2023**

---

| | | | |
|:---|:---|:---|:---|
| **Soybeans (in U.S. cents)** | **High (¢)** | **Low (¢)** | **Period End (¢)** |
| **2018** |  |  |  |
| First Quarter | 1066.75 | 940.50 | 1044.75 |
| Second Quarter | 1060.75 | 858.50 | 858.50 |
| Third Quarter | 903.75 | 814.00 | 845.50 |
| Fourth Quarter | 920.00 | 833.50 | 882.50 |
| **2019** |  |  |  |
| First Quarter | 925.25 | 877.75 | 884.25 |
| Second Quarter | 915.50 | 791.00 | 899.75 |
| Third Quarter | 906.75 | 843.25 | 906.00 |
| Fourth Quarter | 943.00 | 870.50 | 943.00 |
| **2020** |  |  |  |
| First Quarter | 944.25 | 821.75 | 886.00 |
| Second Quarter | 884.25 | 826.00 | 884.25 |
| Third Quarter | 1043.50 | 870.25 | 1023.50 |
| Fourth Quarter | 1315.25 | 1020.75 | 1315.25 |
| **2021** |  |  |  |
| First Quarter | 1441.25 | 1311.75 | 1436.75 |
| Second Quarter | 1660.50 | 1329.75 | 1450.00 |
| Third Quarter | 1467.75 | 1256.00 | 1256.00 |
| Fourth Quarter | 1362.50 | 1178.00 | 1328.75 |
| **2022** |  |  |  |
| First Quarter | 1718.75 | 1344.00 | 1618.25 |
| Second Quarter | 1769.00 | 1582.75 | 1675.00 |
| Third Quarter | 1709.50 | 1364.45 | 1364.75 |
| Fourth Quarter | 1519.25 | 1358.00 | 1519.25 |
| **2023** |  |  |  |
| First Quarter (through February 17, 2023) | 1542.75 | 1466.75 | 1527.25 |

---

February 2023 Page 22

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

**Daily Prices of Sugar<br> January 1, 2018 through February 17, 2023**

---

| | | | |
|:---|:---|:---|:---|
| **Sugar (in U.S. cents)** | **High (¢)** | **Low (¢)** | **Period End (¢)** |
| **2018** |  |  |  |
| First Quarter | 15.33 | 12.21 | 12.35 |
| Second Quarter | 12.79 | 10.86 | 11.86 |
| Third Quarter | 11.68 | 9.90 | 10.42 |
| Fourth Quarter | 14.01 | 11.61 | 12.03 |
| **2019** |  |  |  |
| First Quarter | 13.44 | 11.69 | 12.53 |
| Second Quarter | 12.81 | 11.55 | 12.32 |
| Third Quarter | 12.57 | 10.76 | 11.92 |
| Fourth Quarter | 13.55 | 12.15 | 13.42 |
| **2020** |  |  |  |
| First Quarter | 15.78 | 10.42 | 10.42 |
| Second Quarter | 12.23 | 9.21 | 11.84 |
| Third Quarter | 13.24 | 11.32 | 13.07 |
| Fourth Quarter | 15.49 | 13.55 | 15.49 |
| **2021** |  |  |  |
| First Quarter | 18.78 | 14.77 | 14.77 |
| Second Quarter | 18.10 | 14.71 | 17.63 |
| Third Quarter | 20.22 | 16.93 | 19.83 |
| Fourth Quarter | 20.42 | 18.59 | 18.88 |
| **2022** |  |  |  |
| First Quarter | 19.61 | 17.83 | 19.37 |
| Second Quarter | 20.41 | 18.30 | 18.83 |
| Third Quarter | 19.41 | 17.40 | 18.42 |
| Fourth Quarter | 20.98 | 17.42 | 20.04 |
| **2023** |  |  |  |
| First Quarter (through February 17, 2023) | 21.76 | 18.96 | 21.41 |

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February 2023 Page 23

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

**Daily Prices of Wheat<br> January 1, 2018 to February 17, 2023**

---

| | | | |
|:---|:---|:---|:---|
| **Wheat (in U.S. cents)** | **High (¢)** | **Low (¢)** | **Period End (¢)** |
| **2018** |  |  |  |
| First Quarter | 505.50 | 416.50 | 451.00 |
| Second Quarter | 543.00 | 446.25 | 497.50 |
| Third Quarter | 574.50 | 469.75 | 509.00 |
| Fourth Quarter | 535.25 | 487.25 | 503.25 |
| **2019** |  |  |  |
| First Quarter | 527.25 | 422.25 | 457.75 |
| Second Quarter | 547.50 | 418.50 | 528.00 |
| Third Quarter | 536.25 | 447.25 | 495.75 |
| Fourth Quarter | 558.75 | 488.75 | 558.75 |
| **2020** |  |  |  |
| First Quarter | 581.50 | 498.00 | 568.75 |
| Second Quarter | 556.50 | 474.00 | 490.00 |
| Third Quarter | 578.00 | 489.50 | 578.00 |
| Fourth Quarter | 640.75 | 563.75 | 640.50 |
| **2021** |  |  |  |
| First Quarter | 680.25 | 601.75 | 618.00 |
| Second Quarter | 773.50 | 611.00 | 671.50 |
| Third Quarter | 762.25 | 608.50 | 725.50 |
| Fourth Quarter | 856.00 | 718.75 | 770.75 |
| **2022** |  |  |  |
| First Quarter | 1425.25 | 741.50 | 1006.00 |
| Second Quarter | 1277.50 | 868.75 | 868.75 |
| Third Quarter | 921.50 | 731.50 | 921.50 |
| Fourth Quarter | 938.00 | 705.50 | 792.00 |
| **2023** |  |  |  |
| First Quarter (through February 17, 2023) | 792.00 | 720.00 | 765.50 |

---

February 2023 Page 24

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

**Daily Prices of Copper<br> January 1, 2018 to February 17, 2023**

---

| | | | |
|:---|:---|:---|:---|
| **Copper (in U.S. dollars)** | **High ($)** | **Low ($)** | **Period End ($)** |
| **2018** |  |  |  |
| First Quarter | 7202.50 | 6500.00 | 6685.00 |
| Second Quarter | 7262.50 | 6625.00 | 6646.00 |
| Third Quarter | 6595.00 | 5823.00 | 6180.00 |
| Fourth Quarter | 6325.00 | 5931.50 | 5965.00 |
| **2019** |  |  |  |
| First Quarter | 6572.00 | 5811.00 | 6485.00 |
| Second Quarter | 6509.00 | 5756.00 | 5972.00 |
| Third Quarter | 6066.00 | 5537.00 | 5728.00 |
| Fourth Quarter | 6211.00 | 5599.00 | 6156.00 |
| **2020** |  |  |  |
| First Quarter | 6300.50 | 4617.50 | 4797.00 |
| Second Quarter | 6038.00 | 4772.00 | 6038.00 |
| Third Quarter | 6837.00 | 6016.50 | 6610.00 |
| Fourth Quarter | 7964.00 | 6409.50 | 7741.50 |
| **2021** |  |  |  |
| First Quarter | 9614.50 | 7755.50 | 8850.50 |
| Second Quarter | 10724.50 | 8768.00 | 9385.00 |
| Third Quarter | 9781.00 | 8775.50 | 9041.00 |
| Fourth Quarter | 10652.00 | 9091.50 | 9692.00 |
| **2022** |  |  |  |
| First Quarter | 10730.00 | 9565.00 | 10337.00 |
| Second Quarter | 10426.00 | 8245.00 | 8245.00 |
| Third Quarter | 8315.00 | 7000.00 | 7647.00 |
| Fourth Quarter | 8537.00 | 7420.00 | 8387.00 |
| **2023** |  |  |  |
| First Quarter (through February 17, 2023) | 9436.00 | 8209.00 | 8871.00 |

---

February 2023 Page 25

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

**Daily Prices of Zinc<br> January 1, 2018 to February 17, 2023**

---

| | | | |
|:---|:---|:---|:---|
| **Zinc (in U.S. dollars)** | **High ($)** | **Low ($)** | **Period End ($)** |
| **2018** |  |  |  |
| First Quarter | 3618.00 | 3215.00 | 3332.00 |
| Second Quarter | 3284.50 | 2895.00 | 2948.00 |
| Third Quarter | 2915.00 | 2287.00 | 2573.00 |
| Fourth Quarter | 2740.00 | 2506.00 | 2510.50 |
| **2019** |  |  |  |
| First Quarter | 3000.00 | 2462.00 | 3000.00 |
| Second Quarter | 3018.00 | 2518.00 | 2580.50 |
| Third Quarter | 2546.00 | 2211.00 | 2377.00 |
| Fourth Quarter | 2595.00 | 2221.50 | 2293.00 |
| **2020** |  |  |  |
| First Quarter | 2466.50 | 1773.50 | 1867.50 |
| Second Quarter | 2073.00 | 1843.00 | 2056.50 |
| Third Quarter | 2554.00 | 2007.50 | 2413.00 |
| Fourth Quarter | 2841.50 | 2298.00 | 2723.50 |
| **2021** |  |  |  |
| First Quarter | 2894.50 | 2539.00 | 2795.00 |
| Second Quarter | 3063.50 | 2754.50 | 2945.50 |
| Third Quarter | 3110.00 | 2912.00 | 3015.00 |
| Fourth Quarter | 3815.00 | 2999.00 | 3630.00 |
| **2022** |  |  |  |
| First Quarter | 4260.00 | 3535.00 | 4260.00 |
| Second Quarter | 4530.00 | 3251.50 | 3251.50 |
| Third Quarter | 3877.00 | 2830.00 | 2986.00 |
| Fourth Quarter | 3289.00 | 2682.00 | 3025.00 |
| **2023** |  |  |  |
| First Quarter (through February 17, 2023) | 3509.00 | 2977.00 | 3037.00 |

---

February 2023 Page 26

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

Additional Terms of the Buffered PLUS

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 prospectus supplement or prospectus, the terms described herein shall control. | If the terms described herein are inconsistent with those described in the accompanying prospectus supplement or prospectus, the terms described herein shall control. |
| **Bull market or bear market PLUS:** | Bull market PLUS |
| **Postponement of** <br>**maturity date:**<br>| If, due to a market disruption event or otherwise, the date for determining the final basket commodity price of any basket commodity 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 final date by which the final basket commodity price for all basket commodities has been determined. |
| **Denominations:** | $1,000 per Buffered PLUS and integral multiples thereof |
| **Interest:** |  |
| **Trustee:** | The Bank of New York Mellon |
| **Calculation agent:** | Morgan Stanley Capital Group Inc. ("MSCG") and its successors |
| **Issuer notice to registered security holders, the trustee and the depositary:** | In the event that the maturity date is postponed due to a market disruption event with respect to any basket commodity on the scheduled valuation date or otherwise, 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 Buffered PLUS 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 Buffered PLUS 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 date by which the final basket commodity price for each basket commodity has been determined.<br>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, if any, to be delivered with respect to the Buffered PLUS, 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 with respect to the Buffered PLUS to the trustee for delivery to the depositary, as holder of the Buffered PLUS, on the maturity date. |

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February 2023 Page 27

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

Additional Information About the Buffered PLUS

---

| | |
|:---|:---|
| **Additional provisions:** |  |
| **Minimum ticketing size:** | $1,000 / 1 Buffered PLUS |
| **Tax considerations:** | &nbsp;&nbsp; Although there is uncertainty regarding the U.S. federal income tax consequences of an investment in the Buffered PLUS 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 Buffered PLUS 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.<br>Assuming this treatment of the Buffered PLUS is respected and subject to the discussion in "United States Federal Taxation" in the accompanying prospectus supplement for PLUS, the following U.S. federal income tax consequences should result based on current law:<br>&nbsp;&nbsp;&nbsp;&nbsp;▪ A U.S. Holder should not be required to recognize taxable income over the term of the Buffered PLUS prior to settlement, other than pursuant to a sale or exchange. <br>&nbsp;&nbsp;&nbsp;&nbsp;▪ Upon sale, exchange or settlement of the Buffered PLUS, 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 Buffered PLUS. Such gain or loss should be long-term capital gain or loss if the investor has held the Buffered PLUS for more than one year, and short-term capital gain or loss otherwise.<br>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 Buffered PLUS, possibly with retroactive effect.<br>In addition, 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"). Because the Buffered PLUS reference a basket of commodities, and neither the basket nor any of the commodities is treated for U.S. federal income tax purposes as an Underlying Security, payment on the Buffered PLUS to Non-U.S. Holders should not be subject to Section 871(m).<br>**Both U.S. and non-U.S. investors considering an investment in the Buffered PLUS should read the discussion under "Risk Factors" in this document and the discussion under "United States Federal Taxation" in the accompanying prospectus supplement for PLUS and consult their tax advisers regarding all aspects of the U.S. federal income tax consequences of an investment in the Buffered PLUS, 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.** <br>**The discussion in the preceding paragraphs under "Tax considerations" and the discussion contained in the section entitled "United States Federal Taxation" in the accompanying prospectus supplement for PLUS, 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 Buffered PLUS.** |
| **Use of proceeds and hedging:** | The proceeds we receive from the sale of the Buffered PLUS will be used for general corporate purposes. We will receive, in aggregate, $1,000 per Buffered PLUS issued, because, when we enter into hedging transactions in order to meet our obligations under the Buffered PLUS, our hedging counterparty will reimburse the cost of the agent's commissions. The costs of the Buffered PLUS borne by you and described on page 3 above comprise the agent's commissions and the cost of issuing, structuring and hedging the Buffered PLUS.<br>On or prior to the pricing date, we will hedge our anticipated exposure in connection with the Buffered PLUS, by entering into hedging transactions with our subsidiaries and/or third-party dealers. We expect |

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February 2023 Page 28

Morgan Stanley Finance LLC

Buffered PLUS Based on the Performance of a Basket of Eight Commodities due March 4, 2026

**Buffered Performance Leveraged Upside Securities<sup>SM</sup>** 

**Principal at Risk Securities**

---

| | |
|:---|:---|
|  | our hedging counterparties to take positions in any of the basket commodities, in futures or options contracts on any of the basket commodities 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 initial basket commodity prices of the basket commodities and, as a result, could increase the prices at or above which the basket commodities must close on the valuation date so that investors do not suffer a significant loss on their initial investment in the Buffered PLUS. Additionally, such hedging or trading activities during the term of the Buffered PLUS, including on the valuation date, could potentially affect the value of the basket on the valuation date and, accordingly, the amount of cash you will receive at maturity. For further information on our use of proceeds and hedging, see "Use of Proceeds and Hedging" in the accompanying prospectus supplement for PLUS. |
| **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 Buffered PLUS, either directly or indirectly. |
| **Supplemental information concerning plan of distribution; conflicts of interest:** | Selected dealers and their financial advisors will collectively receive from the agent, MS & Co., a fixed sales commission of $2.50 for each Buffered PLUS they sell.<br>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 Buffered PLUS. When MS & Co. prices this offering of Buffered PLUS, it will determine the economic terms of the Buffered PLUS such that for each Buffered PLUS the estimated value on the pricing date will be no lower than the minimum level described in "Investment Summary" beginning on page 3.<br>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 prospectus supplement for PLUS.<br>|
| **Where you can find more information:** | Morgan Stanley and MSFL have filed a registration statement (including a prospectus, as supplemented by the prospectus supplement for PLUS) 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 prospectus supplement for PLUS and any other documents relating to this offering that Morgan Stanley and MSFL have filed with the SEC for more complete information about Morgan Stanley, MSFL and this offering. You may get these documents without cost by visiting EDGAR on the SEC web site at.www.sec.gov. Alternatively, Morgan Stanley, MSFL, any underwriter or any dealer participating in this offering will arrange to send you the prospectus supplement for PLUS and prospectus if you so request by calling toll-free 800-584-6837.<br>You may access these documents on the SEC web site at.www.sec.gov as follows:<br>**[Prospectus Supplement for PLUS dated November 16, 2020](https://www.sec.gov/Archives/edgar/data/895421/000095010320022224/dp140496_424b2-pscplus.htm)**<br>**[Prospectus dated November 16, 2020](https://www.sec.gov/Archives/edgar/data/895421/000095010320022190/dp140485_424b2-base.htm)**<br>"Performance Leveraged Upside Securities<sup>SM</sup>" and "PLUS<sup>SM</sup>" are our service marks.<br>|

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February 2023 Page 29