# EDGAR Filing Document

**Accession Number:** 0001666268
**File Stem:** 0000950103-23-001347
**Filing Date:** 2023-1
**Character Count:** 72411
**Document Hash:** 6b5e0ec0d52ff350e5f2b7f35ff813b2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950103-23-001347.hdr.sgml**: 20230130

**ACCESSION NUMBER**: 0000950103-23-001347

**CONFORMED SUBMISSION TYPE**: 424B2

**PUBLIC DOCUMENT COUNT**: 5

**FILED AS OF DATE**: 20230130

**DATE AS OF CHANGE**: 20230130

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MORGAN STANLEY
- **CENTRAL INDEX KEY:** 0000895421
- **STANDARD INDUSTRIAL CLASSIFICATION:** SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
- **IRS NUMBER:** 363145972
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 424B2
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-250103
- **FILM NUMBER:** 23567326

**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

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MORGAN STANLEY DEAN WITTER & CO
- **DATE OF NAME CHANGE:** 19980326

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DEAN WITTER DISCOVER & CO
- **DATE OF NAME CHANGE:** 19960315
**FILER**: 

**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:** 424B2
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-250103-01
- **FILM NUMBER:** 23567327

**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

**January 2023**<br> Pricing Supplement No. 7,784<br> Registration Statement Nos. 333-250103; 333-250103-01<br> Dated January 26, 2023<br> Filed pursuant to Rule 424(b)(2)

Morgan Stanley Finance LLC

Structured Investments

Opportunities in Commodities

Trigger PLUS due February 29, 2024

Based on the Performance of Brent Crude Oil Futures Contracts

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

**Fully and Unconditionally Guaranteed by Morgan Stanley**

**Principal at Risk Securities**

The Trigger PLUS are unsecured obligations of Morgan Stanley Finance LLC ("MSFL") and are fully and unconditionally guaranteed by Morgan Stanley. The Trigger PLUS will pay no interest, do not guarantee any return of principal at maturity 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 price of Brent crude oil futures contracts, which we refer to as the underlying commodity, has appreciated in value, investors will receive the stated principal amount of their investment *plus* leveraged upside performance of the underlying commodity. If the underlying commodity has remained unchanged or depreciated in value but the final commodity price is **greater than or equal to** the trigger level, investors will receive the stated principal amount of their investment. However, if the underlying commodity has depreciated in value by more than 20% so that the final commodity price is **less than** the trigger level, investors will lose a significant portion or all of their initial investment, resulting in a 1% loss for every 1% decline in the price of the underlying commodity over the term of the Trigger PLUS. Under these circumstances, the payment at maturity will be less than 80% of the stated principal amount and could be zero. The Trigger PLUS are for investors who seek a Brent crude oil futures contract-based return and who are willing to risk their principal and forgo current income in exchange for the upside leverage feature and the limited protection against loss that applies only if the final commodity price is greater than or equal to the trigger level. **There is no minimum payment at maturity on the Trigger PLUS. Accordingly, you could lose your entire initial investment in the Trigger PLUS.** The Trigger 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 securities 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.**

---

| | | |
|:---|:---|:---|
| **FINAL TERMS** | **FINAL TERMS** | **FINAL TERMS** |
| **Issuer:** | Morgan Stanley Finance LLC | Morgan Stanley Finance LLC |
| **Guarantor:** | Morgan Stanley | Morgan Stanley |
| **Aggregate principal amount:** | $2500000 | $2500000 |
| **Stated principal amount:** | $1,000 per Trigger PLUS | $1,000 per Trigger PLUS |
| **Issue price:** | $1,000 per Trigger PLUS | $1,000 per Trigger PLUS |
| **Pricing date:** | January 26, 2023 | January 26, 2023 |
| **Original issue date:** | January 31, 2023 (3 business days after the pricing date) | January 31, 2023 (3 business days after the pricing date) |
| **Maturity date:** | February 29, 2024 | February 29, 2024 |
| **Underlying commodity:** | Brent crude oil futures contracts ("Brent crude oil") | Brent crude oil futures contracts ("Brent crude oil") |
| **Payment at maturity per Trigger PLUS:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the final commodity price is *greater than* the initial commodity price:<br>$1,000 + leveraged upside payment <br> If the final commodity price is *less than or equal to* the initial commodity price but is *greater than or equal to* the trigger level:<br>$1,000 <br> If the final commodity price is *less than* the trigger level:<br>$1,000 x commodity performance factor <br> *Under these circumstances, the payment at maturity will be less than the stated principal amount of $1,000 per Trigger PLUS, and will represent a loss of at least 20%, and possibly all, of your investment* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the final commodity price is *greater than* the initial commodity price:<br>$1,000 + leveraged upside payment <br> If the final commodity price is *less than or equal to* the initial commodity price but is *greater than or equal to* the trigger level:<br>$1,000 <br> If the final commodity price is *less than* the trigger level:<br>$1,000 x commodity performance factor <br> *Under these circumstances, the payment at maturity will be less than the stated principal amount of $1,000 per Trigger PLUS, and will represent a loss of at least 20%, and possibly all, of your investment* |
| **Leveraged upside payment:** | $1,000 × commodity percent increase × leverage factor | $1,000 × commodity percent increase × leverage factor |
| **Leverage factor:** | 157.25% | 157.25% |
| **Commodity percent increase:** | (final commodity price – initial commodity price) / initial commodity price | (final commodity price – initial commodity price) / initial commodity price |
| **Commodity performance factor:** | final commodity price / initial commodity price | final commodity price / initial commodity price |
| **Trigger level:** | $69.24, which is 80% of the initial commodity price | $69.24, which is 80% of the initial commodity price |
| **Initial commodity price:** | $86.55 | $86.55 |
| **Final commodity price:** | The commodity price on the valuation date, subject to adjustment for non-trading days and certain market disruption events. | The commodity price on the valuation date, subject to adjustment for non-trading days and certain market disruption events. |
| **Valuation date:** | February 26, 2024, subject to postponement for non-trading days and certain market disruption events | February 26, 2024, subject to postponement for non-trading days and certain market disruption events |
| **Commodity price:** | For any trading day, the official settlement price per barrel of Brent blend 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. | For any trading day, the official settlement price per barrel of Brent blend 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. |
| **Agent:** | Morgan Stanley & Co. LLC ("MS & Co."), an affiliate of MSFL and a wholly owned subsidiary of Morgan Stanley. See "Supplemental information regarding 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 regarding plan of distribution; conflicts of interest." |
| **Relevant exchange:** | The ICE Futures Europe or, if such relevant exchange is no longer the principal exchange or trading market for the underlying commodity, such exchange or principal trading market for the underlying commodity that serves as the source of prices for the underlying commodity and any principal exchanges where options or futures contracts on the underlying commodity are traded. | The ICE Futures Europe or, if such relevant exchange is no longer the principal exchange or trading market for the underlying commodity, such exchange or principal trading market for the underlying commodity that serves as the source of prices for the underlying commodity and any principal exchanges where options or futures contracts on the underlying commodity are traded. |
| **CUSIP / ISIN:** | 61774FBC5 / US61774FBC59 | 61774FBC5 / US61774FBC59 |
| **Listing:** | The Trigger PLUS will not be listed on any securities exchange. | The Trigger PLUS will not be listed on any securities exchange. |
| **Estimated value on the pricing date:** | $973.70 per Trigger PLUS. See "Investment Summary" on page 2. | $973.70 per Trigger PLUS. See "Investment Summary" on page 2. |
| **Commissions and issue price:** | **Agent's commissions<sup>(2)</sup>** | **Proceeds to issuer<sup>(3)</sup>** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Per Trigger PLUS** | $10 | $990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $25000 | $2475000 |

---

*(1)* *J.P. Morgan Securities LLC and JPMorgan Chase Bank, N.A. will act as placement agents for the Trigger PLUS. The placement agents will forgo fees for sales to certain fiduciary accounts. The total fees represent the amount that the placement agents receive from sales to accounts other than such fiduciary accounts. The placement agents will receive a fee from the issuer or one of its affiliates that will not exceed $10 per $1,000 stated principal amount of securities.* 

*(2)* *Please see "Supplemental information regarding plan of distribution; conflicts of interest" for information about fees and commissions. For additional information, see "Plan of Distribution (Conflicts of Interest)" in the accompanying prospectus supplement for PLUS.* 

*(3)* *See "Use of proceeds and hedging" on page 15.* 

**The Trigger PLUS involve risks not associated with an investment in ordinary debt securities. See "Risk Factors" beginning on page 6.**

**The Securities and Exchange Commission and state securities regulators have not approved or disapproved these Trigger PLUS, 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.**

**The Trigger 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.**

**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 Information About the Trigger 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** | ![](image_004.gif) |

---

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

Investment Summary

**Trigger Performance Leveraged Upside Securities**

**Principal at Risk Securities**

The Trigger PLUS due February 29, 2024 Based on the Performance of Brent Crude Oil Futures Contracts (the "Trigger PLUS") can be used:

▪ To gain access to the performance of Brent crude oil futures contracts and provide a measure of diversification
of underlying asset class exposure, subject to our credit risk

▪ As an alternative to direct exposure to the underlying commodity that enhances returns for any positive
performance of the price of the underlying commodity

▪ To enhance returns and potentially outperform the underlying commodity in a bullish scenario, with no
limitation on the appreciation potential

▪ To achieve similar levels of upside exposure to the underlying commodity as a direct investment while
using fewer dollars by taking advantage of the leverage factor

▪ To provide limited protection against a loss of principal in the event of a decline of the underlying
commodity as of the valuation date but only if the final commodity price is greater than or equal to the trigger level

The Trigger PLUS are exposed on a 1:1 basis to the negative performance of the underlying commodity if the final commodity price is less than the trigger level.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Maturity:** | Approximately 13 months |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Leverage factor:** | 157.25% (applicable only if the final commodity price is greater than the initial commodity price) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Trigger level:** | 80% of the initial commodity price |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Minimum payment at maturity:** | None. You could lose your entire initial investment in the Trigger PLUS. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Interest:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**No Listing:** | The Trigger PLUS will not be listed on any securities exchange. |

---

The original issue price of each Trigger PLUS is $1,000. This price includes costs associated with issuing, selling, structuring and hedging the Trigger PLUS, which are borne by you, and, consequently, the estimated value of the Trigger PLUS on the pricing date is less than $1,000. We estimate that the value of each Trigger PLUS on the pricing date is $973.70.

*What goes into the estimated value on the pricing date?*

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

In determining the economic terms of the Trigger PLUS, including the leverage factor and the trigger level, 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 Trigger 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 Trigger PLUS?*

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

January 2023 Page 2

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

**Key Investment Rationale**

The Trigger PLUS offer leveraged exposure to any positive performance of the underlying commodity. In exchange for the upside leverage feature, investors are exposed to the risk of loss of a significant portion or all of their investment due to the trigger feature. At maturity, investors will receive an amount in cash based upon the commodity price on the valuation date. If the underlying commodity has **appreciated** in value, investors will receive the stated principal amount of their investment *plus* leveraged upside performance of the underlying commodity. If the underlying commodity has remained unchanged or **depreciated** in value but the final commodity price is greater than or equal to the trigger level, investors will receive the stated principal amount of their investment. However, if the underlying commodity has **depreciated** in value by more than 20%, investors will be negatively exposed to the full amount of the percentage decline in the underlying commodity and will lose 1% of the stated principal amount for every 1% of decline, without any buffer. The Trigger PLUS are unsecured obligations of ours, and all payments on the Trigger PLUS are subject to our credit risk. **There is no minimum payment at maturity on the Trigger PLUS. Accordingly, you could lose your entire initial investment in the Trigger PLUS.**

---

| | |
|:---|:---|
| **Leveraged Upside Performance** | The Trigger PLUS offer investors an opportunity to capture enhanced returns for any positive performance relative to a direct investment in the underlying commodity. There is no limitation on the appreciation potential. |
| **Trigger Feature** | At maturity, even if the underlying commodity has declined over the term of the Trigger PLUS, you will receive your stated principal amount but only if the final commodity price is greater than or equal to the trigger level of 80% of the initial commodity price. |
| **Upside Scenario** | The final commodity price is greater than the initial commodity price and, at maturity, the Trigger PLUS redeem for the stated principal amount of $1,000 per Trigger PLUS *plus* 157.25% of the increase in the price of the underlying commodity. For example, if the final commodity price is 10% greater than the initial commodity price, the Trigger PLUS will provide a total return of 15.725% at maturity. |
| **Par Scenario** | The final commodity price is less than or equal to the initial commodity price but is greater than or equal to the trigger level, which is 80% of the initial commodity price. In this case, you receive the stated principal amount of $1,000 at maturity even though the underlying commodity has depreciated. |
| **Downside Scenario** | The final commodity price is less than the trigger level. In this case, the Trigger PLUS redeem for at least 20% less than the stated principal amount and this decrease will be by an amount proportionate to the full decline in the price of the underlying commodity as of the valuation date. Under these circumstances, the payment at maturity will be less than $800 per Trigger PLUS. For example, if the final commodity price is 35% less than the initial commodity price, the Trigger PLUS will be redeemed at maturity for a loss of 35% of principal at $650, or 65% of the stated principal amount. **There is no minimum payment at maturity on the Trigger PLUS. Accordingly, you could lose your entire initial investment in the Trigger PLUS.** |

---

January 2023 Page 3

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

How the Trigger PLUS Work

**Payoff Diagram**

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

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Stated principal amount:** | $1,000 per Trigger PLUS |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Leverage factor:** | 157.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Trigger level:** | 80% of the initial commodity price |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Minimum payment at maturity:** | None. You could lose your entire initial investment in the Trigger PLUS |

---

---

| |
|:---|
| **Trigger PLUS Payoff Diagram** |
| ![](image_007.jpg) |

---

See the next page for a description of how the Trigger PLUS work.

January 2023 Page 4

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

**How it works**

▪ **Upside Scenario:** If the final commodity price is greater than the initial commodity price,
investors would receive the $1,000 stated principal amount *plus* 157.25% of the appreciation of the underlying commodity over the
term of the Trigger PLUS.

&nbsp;&nbsp;&nbsp;&nbsp;▪ If the underlying commodity appreciates 10%, investors would receive a 15.725% return, or $1,572.50 per Trigger PLUS.

▪ **Par Scenario:** If the final commodity price is less than or equal to the initial commodity
price but is greater than or equal to the trigger level of 80% of the initial commodity price, investors would receive the stated principal
amount.

▪ **Downside Scenario:** If the final commodity price is less than the trigger level of 80% of
the initial commodity price, investors would receive an amount less than the $1,000 stated principal amount, based on a 1% loss of principal
for each 1% decline in the underlying commodity. Under these circumstances, the payment at maturity will be less than $800 per Trigger
PLUS. There is no minimum payment at maturity on the Trigger PLUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ If the underlying commodity depreciates 40%, investors would lose 40% of their principal and receive only $600 per Trigger PLUS at
maturity, or 60% of the stated principal amount.

January 2023 Page 5

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

Risk Factors

*This section describes the material risks relating to the Trigger 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 Trigger PLUS.*

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

▪ **The Trigger PLUS do not pay interest or guarantee return of any principal.** The terms of the Trigger PLUS differ from those of ordinary debt securities in that the Trigger PLUS do not pay
interest or guarantee the payment of any principal amount at maturity. If the final commodity price is less than the trigger level (which
is 80% of the initial commodity price), the payment at maturity will be an amount in cash that is at least 20% less than the $1,000 stated
principal amount of each Trigger PLUS and this decrease will be by an amount proportionate to the full decrease in the price of the underlying
commodity over the term of the Trigger PLUS, without any buffer. **There is no minimum payment at maturity on the Trigger PLUS. Accordingly, you could lose your entire initial investment in the Trigger PLUS.** See "How the Trigger PLUS Work" above.

▪ **The market price of the Trigger PLUS will be influenced by many unpredictable factors.** Several
factors, many of which are beyond our control, will influence the value of the Trigger PLUS in the secondary market and the price at which
MS & Co. may be willing to purchase or sell the Trigger PLUS in the secondary market, including the value (including whether the value
is at or below the trigger level), volatility (frequency and magnitude of changes in value) of the underlying commodity , interest
and yield rates in the market, time remaining until the Trigger PLUS mature, geopolitical conditions and economic, financial, political
and regulatory or judicial events that affect the underlying commodity or commodities markets generally and which may affect the final
commodity price of the underlying commodity, 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. The price of the underlying commodity may be, and has recently been, volatile,
and we can give you no assurance that the volatility will lessen. See "Brent Crude Oil Overview" below. You may receive less,
and possibly significantly less, than the stated principal amount per Trigger PLUS if you are able to sell your Trigger PLUS prior to
maturity.

▪ **The Trigger 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 Trigger PLUS.** You are dependent on our ability to pay all amounts due on the Trigger
PLUS at maturity, and therefore you are subject to our credit risk. If we default on our obligations under the Trigger 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 Trigger 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
Trigger PLUS.

▪ **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.

▪ **The amount payable on the Trigger PLUS is not linked to the commodity price at any time other than the valuation date.** The
final commodity price will be the commodity price on the valuation date, subject to adjustment for

January 2023 Page 6

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

non-trading days and certain market disruption events. Even if the underlying commodity appreciates prior to the valuation date but then drops by the valuation date, the payment at maturity may be less, and may be significantly less, than it would have been had the payment at maturity been linked to the commodity price prior to such drop. Although the actual commodity price on the stated maturity date or at other times during the term of the Trigger PLUS may be higher than the final commodity price, the payment at maturity will be based solely on the commodity price on the valuation date.

▪ **Investing in the Trigger PLUS is not equivalent to investing in the underlying commodity or in futures contracts or forward contracts on the underlying commodity.** By purchasing the Trigger PLUS, you do not purchase any entitlement
to the underlying commodity or futures contracts or forward contracts on the underlying commodity. Further, by purchasing the Trigger
PLUS, you are taking credit risk to Morgan Stanley and not to any counter-party to futures contracts or forward contracts on the underlying
commodity.

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

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

▪ **The Trigger PLUS will not be listed on any securities exchange and secondary trading may be limited.** The Trigger PLUS will
not be listed on any securities exchange. Therefore, there may be little or no secondary market for the Trigger PLUS. MS & Co. may,
but is not obligated to, make a market in the Trigger 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 Trigger 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 Trigger PLUS. Even if there is a secondary market, it may not provide enough liquidity to allow you to trade or
sell the Trigger PLUS easily. Since other broker-dealers may not participate significantly in the secondary market for the Trigger PLUS,
the price at which you may be able to trade your Trigger 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 market in the Trigger PLUS, it is likely that there would be no secondary
market for the Trigger PLUS. Accordingly, you should be willing to hold your Trigger PLUS to maturity.

January 2023 Page 7

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

▪ **The calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL, will make determinations with respect to the Trigger PLUS.** As calculation agent, Morgan Stanley Capital Group Inc. ("MSCG") will determine the initial commodity
price, the final commodity price and whether the final commodity price has decreased to below the trigger level, and will calculate the
amount of cash you receive at maturity, if any. 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 or calculation of the price of the underlying commodity in the event of a market disruption event.
These potentially subjective determinations may adversely affect the payout to you at maturity, if any. For further information regarding
these types of determinations, see "Description of PLUS—Postponement of Valuation Date," "—Alternate exchange
calculation in case of an event of default," "—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 Trigger PLUS
on the pricing date.

▪ **Hedging and trading activity by our affiliates could potentially adversely affect the value of the Trigger PLUS.** One or more
of our affiliates and/or third-party dealers expect to carry out hedging activities related to the Trigger PLUS (and to other instruments
linked to the underlying commodity), including trading in the underlying commodity or forward contracts or futures contracts on the underlying
commodity. As a result, these entities may be unwinding or adjusting hedge positions during the term of the Trigger PLUS, and the hedging
strategy may involve greater and more frequent dynamic adjustments to the hedge as the valuation date approaches. Some of our affiliates
also trade in financial instruments related to the underlying commodity or the prices of the commodities or contracts that underlie the
underlying commodity on a regular basis as part of their general commodity trading and other businesses. Any of these hedging or trading
activities on or prior to the day on which the initial commodity price is determined could potentially increase the initial commodity
price and, therefore, could increase the trigger level, which is the price at or above which the underlying commodity must close on the
valuation date so that investors do not suffer a significant loss on their initial investment in the Trigger PLUS. Additionally, such
hedging or trading activities during the term of the Trigger PLUS, including on the valuation date, could potentially affect whether the
price of the underlying commodity price on the valuation date is at or below the trigger level, and, therefore, whether an investor would
receive less than the stated principal amount of the Trigger PLUS at maturity, if any.

▪ **The U.S. federal income tax consequences of an investment in the Trigger PLUS are uncertain.** Please read the discussion under
"Additional Information—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 Trigger PLUS. If the Internal Revenue Service (the "IRS") were successful in asserting
an alternative treatment, the timing and character of income on the Trigger 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 Trigger PLUS as debt
instruments. In that event, U.S. Holders would be required to accrue into income original issue discount on the Trigger PLUS every year
at a "comparable yield" determined at the time of issuance and recognize all income and gain in respect of the Trigger PLUS
as ordinary income. The risk that financial instruments providing for buffers, triggers or similar downside protection features, such
as the Trigger 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 Trigger 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

January 2023 Page 8

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

guidance promulgated after consideration of these issues could materially and adversely affect the tax consequences of an investment in the Trigger 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 an investment in the Trigger 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 Underlying Commodity</u>

▪ **Single commodity prices tend to be more volatile than, and may not correlate with, the prices of commodities generally.** The
payment at maturity is linked exclusively to the price of futures contracts on Brent crude oil and not to a diverse basket of commodities
or a broad-based commodity index. The price of futures contracts on Brent crude oil may not correlate to, and may diverge significantly
from, the prices of commodities generally. Because the Trigger PLUS are linked to the price of a single commodity, they carry greater
risk and may be more volatile than a security linked to the prices of multiple commodities or a broad-based commodity index. The price
of futures contracts on Brent crude oil may be, and has recently been, highly volatile, and we can give you no assurance that the volatility
will lessen. See "Brent Crude Oil Overview" on page 12.

▪ **Investments linked to a single commodity are subject to sharp fluctuations in commodity prices, and the price of Brent crude oil may change unpredictably and affect the value of the Trigger PLUS in unforeseen ways.** Investments, such as the Trigger PLUS, linked
to the price of a single commodity, such as Brent crude oil futures contracts, are subject to significant fluctuations in the price of
the commodity over short periods due to a variety of factors. Brent crude oil is light sweet crude oil from the North Sea. Most refinement
takes place in Northwest Europe. Brent crude oil prices are generally more volatile and subject to dislocation than prices of other commodities.
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 ("OPEC") and other crude oil producers. OPEC has the potential
to influence oil prices worldwide because its members possess a significant portion of the world's oil supply. 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 the commencement or 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. Brent crude
oil prices may also be affected by short-term changes in supply and demand because of trading activities in the oil market and seasonality
(e.g., weather conditions such as hurricanes). The price of Brent crude oil futures has experienced very severe price fluctuations
over the recent past and there can be no assurance that this extreme price volatility will not continue in the future.

More recently, prior to and since Russia's further invasion of Ukraine, the price of oil, including the price of Brent crude oil futures contracts, has been volatile and increased significantly. This conflict has led to disruptions in the supply of oil and caused fluctuations in the price of oil, 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. 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 to become even more volatile and unpredictable. Any of these developments could adversely affect the price of Brent crude oil futures and, therefore, the value of the Trigger PLUS and the payment at maturity, if any. See "Brent Crude Oil Overview" on page 12.

January 2023 Page 9

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

You can review a table of the published high and low commodity prices, as well as end-of-quarter commodity prices, of the underlying commodity for each calendar quarter in the period from January 1, 2018 through January 26, 2023 on page 13 and a graph that plots the daily commodity prices of the underlying commodity for the same period in this document on page 12. You cannot predict the future performance of the underlying commodity based on its historical performance. In addition, there can be no assurance that the final commodity price will be greater than or equal to the downside threshold value so that you do not suffer a significant loss on your initial investment in the Trigger PLUS.

▪ **An investment linked to commodity futures contracts is not equivalent to an investment linked to the spot prices of physical commodities.** The Trigger PLUS have returns based on the change in price of futures contracts on the underlying commodity, not the change in the
spot price of the actual physical commodity 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.

▪ **Differences between futures prices and the spot price of Brent crude oil may decrease the amount payable at maturity.** The
initial commodity price and final commodity price that are used to determine the payment at maturity, if any, on the Trigger PLUS are
determined by reference to the settlement price of the first nearby month futures contract for Brent crude oil on the pricing date and
valuation date, respectively. The market for futures contracts on Brent crude oil 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
is in contango on the pricing date or in backwardation on the valuation date, the payment at maturity payable, if any, on the maturity
date, may be less than if the initial commodity price or the final commodity price, respectively, was determined with reference to the
spot price.

▪ **Suspension or disruptions of market trading in Brent crude oil futures contracts may adversely affect the value of the Trigger PLUS.** The futures market for Brent crude oil is 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 value of Brent crude oil futures contracts and, therefore, the value of the Trigger
PLUS .

▪ **Legal and regulatory changes could adversely affect the return on and value of the Trigger PLUS.** Futures contracts and options
on futures contracts, including those related to the underlying commodity, 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 derivative markets in general. The effect on the value of the Trigger PLUS
of any future regulatory change is impossible to predict, but could be substantial and adverse to the interests of holders of the Trigger
PLUS.

January 2023 Page 10

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

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 Trigger PLUS.

January 2023 Page 11

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

Brent Crude Oil Overview

Crude oil is used as a refined product primarily as transport fuel, industrial fuel and in-home heating fuel. The price of Brent crude oil to which the return on the Trigger PLUS is linked is based on the official settlement price per barrel of Brent blend crude oil on the ICE Futures Europe of the first nearby month futures contract, stated in U.S. dollars, as made public by the ICE Futures Europe on such date.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Underlying commodity information as of January 26, 2023** | **Underlying commodity information as of January 26, 2023** | **Underlying commodity information as of January 26, 2023** | **Underlying commodity information as of January 26, 2023** | **Underlying commodity information as of January 26, 2023** | **Underlying commodity information as of January 26, 2023** |
|  | **Bloomberg Ticker Symbol\*** | **Current Price** | **52 Weeks Ago** | **52 Week <br> High** | **52 Week <br> Low** |
| **Brent crude oil (in U.S. dollars)** | **CO1** | $87.47 | $89.96 | $127.98 (on 3/8/2022) | $76.10 (on 12/9/2022) |

---

\* The Bloomberg ticker symbol is being provided for reference purposes only. The commodity price on any trading day will be determined based on the price published by the ICE Futures Europe.

The following graph sets forth the daily prices of the underlying commodity for the period from January 1, 2018 through January 26, 2023. The related table presents the published high and low daily prices, as well as end-of-quarter prices, for the underlying commodity for each quarter in the same period. The commodity price on January 26, 2023 was $87.47. We obtained the information in the graph and table below from Bloomberg Financial Markets, without independent verification. The underlying commodity has at times experienced periods of high volatility. The historical performance of the underlying commodity should not be taken as an indication of its future performance, and no assurance can be given as to the value of the underlying commodity on the valuation date. The actual performance of the underlying commodity over the term of the Trigger PLUS and the amount payable at maturity, if any, may bear little relation to the historical prices shown below.

**Brent Crude Oil Prices<br> Daily Closing Prices of the First Nearby Month Futures Contract**<br> **January 1, 2018 to January 26, 2023**<br>

\*The bold red line in the graph indicates the trigger level of $69.24, which is 80% of the initial commodity price.

January 2023 Page 12

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

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| | | | |
|:---|:---|:---|:---|
| **Brent Crude Oil (in U.S. dollars per barrel)** | **High ($)** | **Low ($)** | **Period End ($)** |
| **2018** |  |  |  |
| First Quarter | 70.53 | 62.59 | 70.27 |
| Second Quarter | 79.80 | 67.11 | 79.44 |
| Third Quarter | 82.72 | 70.76 | 82.72 |
| Fourth Quarter | 86.29 | 50.47 | 53.80 |
| **2019** |  |  |  |
| First Quarter | 68.50 | 54.91 | 68.39 |
| Second Quarter | 74.57 | 59.97 | 66.55 |
| Third Quarter | 69.02 | 56.23 | 60.78 |
| Fourth Quarter | 68.44 | 57.69 | 66.00 |
| **2020** |  |  |  |
| First Quarter | 68.91 | 22.74 | 22.74 |
| Second Quarter | 43.08 | 19.33 | 41.15 |
| Third Quarter | 45.86 | 39.61 | 40.95 |
| Fourth Quarter | 52.26 | 37.46 | 51.80 |
| **2021** |  |  |  |
| First Quarter | 69.63 | 51.09 | 63.54 |
| Second Quarter | 76.18 | 62.15 | 75.13 |
| Third Quarter | 79.53 | 65.18 | 78.52 |
| Fourth Quarter | 86.40 | 68.87 | 77.78 |
| **2022** |  |  |  |
| First Quarter | 127.98 | 78.98 | 107.91 |
| Second Quarter | 123.58 | 98.48 | 114.81 |
| Third Quarter | 113.50 | 84.06 | 87.96 |
| Fourth Quarter | 98.57 | 76.10 | 85.91 |
| **2023** |  |  |  |
| First Quarter (through January 26, 2023) | 88.19 | 77.84 | 87.47 |

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January 2023 Page 13

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

Additional Information About the Trigger PLUS

Please read this information in conjunction with the summary terms on the front cover of this document.

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| | |
|:---|:---|
| **Bull market or bear market PLUS:** | Bull market PLUS |
| **Denominations:** | $1,000 per Trigger PLUS and integral multiples thereof |
| **Interest:** |  |
| **Postponement of** <br>**maturity date:**<br>| If the scheduled valuation date is not a trading day or if a market disruption event occurs on that day so that the valuation date as postponed falls less than two business days prior to the scheduled maturity date, the maturity date of the Trigger PLUS will be postponed to the second business day following that valuation date as postponed. |
| **Minimum ticketing size:** | $1,000 / 1 Trigger PLUS |
| **Trustee:** | The Bank of New York Mellon |
| **Calculation agent:** | Morgan Stanley Capital Group Inc. and its successors ("MSCG") |
| **Tax considerations:** | &nbsp;&nbsp; Although there is uncertainty regarding the U.S. federal income tax consequences of an investment in the Trigger 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 Trigger PLUS should be treated as a single financial contract that is an "open transaction" for U.S. federal income tax purposes.<br>Assuming this treatment of the Trigger 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 Trigger PLUS prior to settlement, other than pursuant to a sale or exchange. <br>&nbsp;&nbsp;&nbsp;&nbsp;▪ Upon sale, exchange or settlement of the Trigger 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 Trigger PLUS. Such gain or loss should be long-term capital gain or loss if the investor has held the Trigger 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 Trigger PLUS, possibly with retroactive effect.<br>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 Trigger PLUS reference a commodity that is not treated for U.S. federal income tax purposes as an Underlying Security, payment on the Trigger 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 Trigger 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 Trigger 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.**  |

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January 2023 Page 14

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

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| | |
|:---|:---|
|  | **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 Trigger PLUS.** |
| **Use of proceeds and hedging:** | The proceeds from the sale of the Trigger PLUS will be used by us for general corporate purposes. We will receive, in aggregate, $1,000 per Trigger PLUS issued, because, when we enter into hedging transactions in order to meet our obligations under the Trigger PLUS, our hedging counterparty will reimburse the cost of the agent's commissions. The costs of the Trigger PLUS borne by you and described on page 2 above comprise the agent's commissions and the cost of issuing, structuring and hedging the Trigger PLUS.<br>On or prior to the day on which the initial commodity price is determined, we will hedge our anticipated exposure in connection with the Trigger PLUS by entering into hedging transactions with our affiliates and/or third party dealers. We expect our hedging counterparties to take positions in the underlying commodity or futures contracts or forward contracts on the underlying commodity or positions in any other available instruments that they may wish to use in connection with such hedging. As a result, these entities may be unwinding or adjusting hedge positions during the term of the Trigger PLUS, and the hedging strategy may involve greater and more frequent dynamic adjustments to the hedge as the valuation date approaches. Such purchase activity could potentially increase the price of the underlying commodity, and therefore, could increase the trigger level, which is the price at or above which the underlying commodity must close on the valuation date so that investors do not suffer a significant loss on their initial investment in the Trigger PLUS. In addition, through our affiliates, we are likely to modify our hedge position throughout the life of the Trigger PLUS, including on the valuation date, by purchasing and selling the underlying commodity or futures contracts or forward contracts on the underlying commodity or positions in any other available securities or instruments that we may wish to use in connection with such hedging activities. As a result, these entities may be unwinding or adjusting hedge positions during the term of the Trigger PLUS, and the hedging strategy may involve greater and more frequent dynamic adjustments to the hedge as the valuation date approaches. We cannot give any assurance that our hedging activities will not affect the price of the underlying commodity and, therefore, adversely affect the value of the Trigger PLUS or the payment you will receive at maturity, if any. 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 Trigger PLUS, either directly or indirectly. |
| **Supplemental information regarding plan of distribution; conflicts of interest:** | JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC and its affiliates will act as placement agents for the Trigger PLUS and will receive a fee from the Issuer or one of its affiliates that will not exceed $10 per $1,000 stated principal amount of securities, but will forgo any fees for sales to certain fiduciary accounts.<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 Trigger PLUS.<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. |
| **Validity of the Trigger PLUS:** | In the opinion of Davis Polk & Wardwell LLP, as special counsel to MSFL and Morgan Stanley, when the Trigger PLUS offered by this pricing supplement have been executed and issued by MSFL, authenticated by the trustee pursuant to the MSFL Senior Debt Indenture (as defined in the accompanying prospectus) and delivered against payment as contemplated herein, such Trigger PLUS will be valid and binding obligations of MSFL and the related guarantee will be a valid and binding obligation of Morgan Stanley, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors' rights generally, concepts of reasonableness and equitable principles of general applicability (including, without limitation, concepts of good faith, fair dealing and the lack of bad faith), *provided* that such counsel expresses no opinion as to (i) the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law on the conclusions expressed above and (ii) any provision of the MSFL Senior Debt Indenture that purports to avoid the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law by limiting the amount of Morgan Stanley's obligation under the related guarantee. This opinion is given as of the date hereof and is limited to the laws of the State of New York, the General Corporation Law of the State of Delaware and the Delaware Limited Liability |

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January 2023 Page 15

Morgan Stanley Finance LLC

**Trigger PLUS due February 29, 2024**

**Based on the Performance of Brent Crude Oil Futures Contracts**

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

**Principal at Risk Securities** 

**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. Before you invest, 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 the offering any underwriter or any dealer participating in the offering will arrange to send you the prospectus and the prospectus supplement for PLUS 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>Terms used but not defined in this document are defined in the prospectus supplement for PLUS or in the prospectus.<br>"Performance Leveraged Upside Securities<sup>SM</sup>" and "PLUS<sup>SM</sup>" are our service marks.<br>

January 2023 Page 16

## Ex-Filing

**Exhibit 107.1**

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Security Type | Security Class Title | Fee Calculation or Carry Forward Rule | Amount Registered | Proposed Maximum Offering Price Per Unit | Maximum Aggregate Offering Price | Fee Rate | Amount of Registration Fee | Carry Forward Form Type | Carry Forward File Number | Carry Forward Initial Effective Date | Filing Fee Previously Paid In Connection with Unsold Securities to be Carried Forward |
| Fees to be Paid | Unallocated (Universal) Shelf | Securities | 456(b) | 2500 | $1000 | $2500000 | .0001102 | $275.50 | - | - | - | - |
| Fees Previously Paid | - | - | - | - | - | $0 | - | $0 | - | - | - | - |

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