# EDGAR Filing Document

**Accession Number:** 0001666268
**File Stem:** 0001839882-23-006788
**Filing Date:** 2023-3
**Character Count:** 11235
**Document Hash:** a8c2eb87ecc5bf8a28dcaef6e4d8d9a8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001839882-23-006788.hdr.sgml**: 20230315

**ACCESSION NUMBER**: 0001839882-23-006788

**CONFORMED SUBMISSION TYPE**: FWP

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230315

**DATE AS OF CHANGE**: 20230315

**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:** 23734578

**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

Free Writing Prospectus to Preliminary Terms No. 8,397

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

Dated March 15, 2023; Filed pursuant to Rule 433

Morgan Stanley

**2** **.5-Year SPX Buffered PLUS**

***This document provides a summary of the terms of the Buffered PLUS. Investors must carefully review the accompanying preliminary terms referenced below, product supplement, index supplement and prospectus, and the "Risk Considerations" on the following page, prior to making an investment decision.***

---

| | |
|:---|:---|
| &nbsp;&nbsp; **Summary Terms** | &nbsp;&nbsp; **Summary Terms** |
| &nbsp;&nbsp; **Issuer:** | &nbsp;&nbsp;&nbsp; Morgan Stanley Finance LLC |
| &nbsp;&nbsp; **Guarantor:** | &nbsp;&nbsp;&nbsp; Morgan Stanley |
| &nbsp;&nbsp; **Maturity date:** | &nbsp;&nbsp;&nbsp; October 3, 2025 |
| &nbsp;&nbsp; **Underlying index:** | &nbsp;&nbsp;&nbsp; S&P 500<sup>®</sup>Index ("SPX") |
| &nbsp;&nbsp; **Payment at maturity per Buffered PLUS**<sup>1</sup>**:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the final index value is greater than the initial index value:<br> $10 + leveraged upside payment<br> *In no event will the payment at maturity exceed the maximum payment at maturity.*<br> If the final index value is less than or equal to the initial index value but has decreased from the initial index value by an amount less than or equal to the buffer amount of 10%:<br> $10<br> If the final index value is less than the initial index value and has decreased from the initial index value by an amount greater than the buffer amount of 10%:<br> ($10 × the index performance factor) + $1<br> *Under these circumstances, the payment at maturity will be less than the stated principal amount of $10. However, under no circumstances will the Buffered PLUS pay less than $1.00 per Buffered PLUS at maturity.* |
| &nbsp;&nbsp; **Leveraged upside payment:** | &nbsp;&nbsp;&nbsp; $10 × leverage factor × index percent increase |
| &nbsp;&nbsp; **Index percent increase:** | &nbsp;&nbsp;&nbsp; (final index value – initial index value) / initial index value |
| &nbsp;&nbsp; **Initial index value:** | &nbsp;&nbsp;&nbsp; The index closing value on the pricing date |
| &nbsp;&nbsp; **Final index value:** | &nbsp;&nbsp;&nbsp; The index closing value on the valuation date |
| &nbsp;&nbsp; **Valuation date:** | &nbsp;&nbsp;&nbsp; September 30, 2025, subject to postponement for non-index business days and certain market disruption events |
| &nbsp;&nbsp; **Leverage factor:** | &nbsp;&nbsp;&nbsp; 200% |
| &nbsp;&nbsp; **Buffer amount:** | &nbsp;&nbsp;&nbsp; 10%. As a result of the buffer amount of 10%, the value at or above which the underlying index must close on the valuation date so that investors do not suffer a loss on their initial investment in the Buffered PLUS is 90% of the initial index value. |
| &nbsp;&nbsp; **Minimum payment at maturity:** | &nbsp;&nbsp;&nbsp; $1.00 per Buffered PLUS (10% of the stated principal amount) |
| &nbsp;&nbsp; **Index performance factor:** | &nbsp;&nbsp;&nbsp; Final index value *divided* by the initial index value |
| &nbsp;&nbsp; **Maximum payment at maturity:** | &nbsp;&nbsp;&nbsp; $13.035 per Buffered PLUS (130.35% of the stated principal amount) |
| &nbsp;&nbsp; **Stated principal amount:** | &nbsp;&nbsp;&nbsp; $10 per Buffered PLUS  |
| &nbsp;&nbsp; **Issue price:** | &nbsp;&nbsp;&nbsp; $10 per Buffered PLUS |
| &nbsp;&nbsp; **Pricing date:** | &nbsp;&nbsp;&nbsp; March 31, 2023 |
| &nbsp;&nbsp; **Original issue date:** | &nbsp;&nbsp;&nbsp; April 5, 2023 (3 business days after the pricing date) |
| &nbsp;&nbsp; **CUSIP/ISIN:** | &nbsp;&nbsp;&nbsp; 61774U778 / US61774U7789 |
| &nbsp;&nbsp; **Preliminary terms:** | &nbsp;&nbsp;&nbsp; [https://www.sec.gov/Archives/edgar/data/895421/000183988223006756/ms8397_fwp-03647.htm](https://www.sec.gov/Archives/edgar/data/895421/000183988223006756/ms8397_fwp-03647.htm) |
| &nbsp;&nbsp;&nbsp; <sup>1</sup>All payments are subject to our credit risk | &nbsp;&nbsp;&nbsp; <sup>1</sup>All payments are subject to our credit risk |

---

**Hypothetical Payout at Maturity**<sup>1</sup>

---

| | |
|:---|:---|
| &nbsp;&nbsp; **Change in Underlying** | &nbsp;&nbsp; **Return on Buffered PLUS** |
| &nbsp;&nbsp;&nbsp; +50.00% | &nbsp;&nbsp;&nbsp; 30.35% |
| &nbsp;&nbsp;&nbsp; +40.00% | &nbsp;&nbsp;&nbsp; 30.35% |
| &nbsp;&nbsp;&nbsp; +30.00% | &nbsp;&nbsp;&nbsp; 30.35% |
| &nbsp;&nbsp;&nbsp; +20.00% | &nbsp;&nbsp;&nbsp; 30.35% |
| &nbsp;&nbsp;&nbsp; +15.175% | &nbsp;&nbsp;&nbsp; 30.35% |
| &nbsp;&nbsp;&nbsp; +10.00% | &nbsp;&nbsp;&nbsp; 20% |
| &nbsp;&nbsp;&nbsp; +5.00% | &nbsp;&nbsp;&nbsp; 10% |
| &nbsp;&nbsp;&nbsp; 0.00% | &nbsp;&nbsp;&nbsp; 0% |
| &nbsp;&nbsp;&nbsp; -10.00% | &nbsp;&nbsp;&nbsp; 0% |
| &nbsp;&nbsp;&nbsp; -11.00% | &nbsp;&nbsp;&nbsp; -1% |
| &nbsp;&nbsp;&nbsp; -20.00% | &nbsp;&nbsp;&nbsp; -10% |
| &nbsp;&nbsp;&nbsp; -30.00% | &nbsp;&nbsp;&nbsp; -20% |
| &nbsp;&nbsp;&nbsp; -40.00% | &nbsp;&nbsp;&nbsp; -30% |
| &nbsp;&nbsp;&nbsp; -50.00% | &nbsp;&nbsp;&nbsp; -40% |
| &nbsp;&nbsp;&nbsp; -60.00% | &nbsp;&nbsp;&nbsp; -50% |
| &nbsp;&nbsp;&nbsp; -80.00% | &nbsp;&nbsp;&nbsp; -70% |
| &nbsp;&nbsp;&nbsp; -100.00% | &nbsp;&nbsp;&nbsp; -90% |

---

------

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-584-6837.

**Underlying Index**

For more information about the underlying index, including historical performance information, see the accompanying preliminary terms.

**Risk Considerations**

The risks set forth below are discussed in more detail in the "Risk Factors" section in the accompanying preliminary terms. Please review those risk factors carefully prior to making an investment decision.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Buffered PLUS do not pay interest and provide a minimum payment at maturity of only 10% of your principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●The appreciation potential of the Buffered PLUS is limited by the maximum payment at maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●The market price of the Buffered PLUS will be influenced by many unpredictable factors.

&nbsp;&nbsp;&nbsp;&nbsp;&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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●As a finance subsidiary, MSFL has no independent operations and will have no independent assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●The estimated value of the Buffered PLUS is $9.601 per Buffered PLUS, or within $0.35 of that estimate, and is determined by reference to our pricing and valuation models, which may differ from those of other dealers and is not a maximum or minimum secondary market price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●The amount payable on the Buffered PLUS is not linked to the value of the underlying index at any time other than the valuation date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Investing in the Buffered PLUS is not equivalent to investing in the underlying index.

&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.

&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.

&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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Hedging and trading activity by our affiliates could potentially adversely affect the value of the Buffered PLUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●The U.S. federal income tax consequences of an investment in the Buffered PLUS are uncertain.

<u>Risks Relating to the Underlying Index</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Governmental regulatory actions, such as sanctions, could adversely affect your investment in the Buffered PLUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Adjustments to the underlying index could adversely affect the value of the Buffered PLUS.

**Tax Considerations**

You should review carefully the discussion in the accompanying preliminary terms under the caption "Additional Information About the Buffered PLUS–Tax considerations" concerning the U.S. federal income tax consequences of an investment in the Buffered PLUS, and you should consult your tax adviser.