FWP 1 dp19987_fwp-ps586.htm FORM FWP
 
November 2010
 
Pricing Sheet dated November 15, 2010 relating to
Preliminary Terms No. 586 dated November 12, 2010 to
Registration Statement No. 333-156423
Filed pursuant to Rule 433
S T R U C T U R E D  I N V E S T M E N T S
Opportunities in U.S. Equities
PLUS Based on the iShares® Dow Jones U.S. Real Estate Index Fund due May 18, 2011
Performance Leveraged Upside SecuritiesSM
PRICING TERMS – NOVEMBER 15, 2010
Issuer:
Morgan Stanley
Maturity date:
May 18, 2011
Underlying shares:
iShares® Dow Jones U.S. Real Estate Index Fund
Aggregate principal amount:
$5,003,500
Payment at maturity:
If the final share price is greater than the initial share price:
 
$10 + leveraged upside payment
 
In no event will the payment at maturity exceed the maximum payment at maturity.
 
If the final share price is less than or equal to the initial share price,
 
$10 x share performance factor
 
This amount will be less than or equal to the stated principal amount of $10.
Leveraged upside payment:
$10 x leverage factor x share percent increase
Share percent increase:
(final share price – initial share price) / initial share price
Share performance factor:
final share price / initial share price
Initial share price:
$54.36, which is the closing price of one underlying share on the pricing date.
Final share price:
The closing price of one underlying share on the valuation date times the adjustment factor on such date
Adjustment factor:
1.0, subject to adjustment in the event of certain corporate events affecting the underlying shares.
Valuation date:
May 13, 2011, subject to postponement for non-trading days and certain market disruption events.
Leverage factor:
200%
Maximum payment at maturity:
$11.15 per PLUS (111.5% of the stated principal amount)
Stated principal amount:
$10 per PLUS
Issue price:
$10 per PLUS
Pricing date:
November 15, 2010
Original issue date:
November 18, 2010 (3 business days after the pricing date)
CUSIP:
61759G117
ISIN:
US61759G1177
Listing:
The PLUS will not be listed on any securities exchange.
Agent:
Morgan Stanley & Co. Incorporated (“MS & Co.”), a wholly-owned subsidiary of Morgan Stanley.  See “Supplemental information regarding plan of distribution; conflicts of interest” in the accompanying preliminary terms.
Commissions and Issue Price:
Price to Public
Agent’s Commissions(1)
Proceeds to Issuer
Per PLUS
$10
$0.1625
$9.8375
Total
$5,003,500
$81,306.88
$4,922,193.12
(1)
Selected dealers, including Morgan Stanley Smith Barney LLC (an affiliate of the Agent), and their financial advisors will collectively receive from the Agent, MS & Co., a fixed sales commission of $0.1625 for each PLUS they sell.  For additional information, see “Supplemental information regarding plan of distribution; conflicts of interest” in the accompanying preliminary terms and “Plan of Distribution (Conflicts of Interest)” in the accompanying prospectus supplement for PLUS.
 
You should read this document together with the preliminary terms describing the offering and the related prospectus supplement and prospectus, each of which can be accessed via the hyperlinks below.
 
 
The PLUS are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, nor are they obligations of, or guaranteed by, a bank.
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 this offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-584-6837.