FWP 1 dp51621_fwp-ps1690.htm FORM FWP
 
November 2014
 
Pricing Sheet dated November 28, 2014 relating to
Preliminary Terms No. 1,690 dated October 31, 2014
Registration Statement No. 333-200365
Filed pursuant to Rule 433
STRUCTURED INVESTMENTS
Opportunities in U.S. Equities
Trigger PLUS due November 30, 2017
Based on the Performance of the iShares® U.S. Real Estate ETF
Trigger Performance Leveraged Upside SecuritiesSM
Principal at Risk Securities
PRICING TERMS – NOVEMBER 28, 2014
Issuer:
Morgan Stanley
Maturity date:
November 30, 2017
Valuation date:
November 27, 2017, subject to postponement for non-trading days and certain market disruption events
Underlying shares:
Shares of the iShares® U.S. Real Estate ETF (the “Fund”)
Aggregate principal amount:
$4,410,620
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 but is greater than or equal to the trigger level:
$10
If the final share price is less than the trigger level:
$10 × share performance factor
Under these circumstances, the payment at maturity will be less than the stated principal amount of $10, and will represent a loss of more than 15%, and possibly all, of your investment.
Leveraged upside payment:
$10 x leverage factor x share percent increase
Leverage factor:
200%
Share percent increase:
(final share price – initial share price) / initial share price
Share performance factor:
final share price / initial share price
Initial share price:
$77.02, 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 events affecting the underlying shares
Maximum payment at maturity:
$16.20 per Trigger PLUS (162% of the stated principal amount)
Trigger level:
$65.467, which is 85% of the initial share price
Stated principal amount / Issue price:
$10 per Trigger PLUS
Pricing date:
November 28, 2014
Original issue date:
December 3, 2014 (3 business days after the pricing date)
CUSIP / ISIN:
61764C606 / US61764C6066
Listing:
The Trigger PLUS will not be listed on any securities exchange.
Agent:
Morgan Stanley & Co. LLC (“MS & Co.”), a wholly-owned subsidiary of Morgan Stanley.  See “Supplemental information regarding plan of distribution; conflicts of interest” in the accompanying preliminary terms.
Estimated value on the pricing date:
$9.475 per Trigger PLUS.  See “Investment Summary” in the accompanying preliminary terms.
Commissions and issue price:
Price to public(1)
Agent’s commissions and fees
Proceeds to issuer(4)
Per Trigger PLUS
$10.00
$0.25(2)
  
   
$0.05(3)
$9.70
Total
$4,410,620
$132,318.60
$4,278,301.40
(1)
The actual price to public and agent’s commissions and fees for a particular investor may be reduced for volume purchase discounts depending on the aggregate amount of Trigger PLUS purchased by that investor.  The lowest price payable by an investor is $9.90 per Trigger PLUS.  Please see “Syndicate Information” in the accompanying preliminary terms for further details.
(2)
Selected dealers, including Morgan Stanley Wealth Management (an affiliate of the agent), and their financial advisors will collectively receive from the agent, MS & Co., a fixed sales commission of $0.25 for each Trigger 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 product supplement for PLUS.
(3) 
Reflects a structuring fee payable to Morgan Stanley Wealth Management by the agent or its affiliates of $0.05 for each Trigger PLUS.
(4) 
See “Use of proceeds and hedging” in the accompanying preliminary terms.
The Trigger PLUS are not bank deposits and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency, nor are they obligations of, or guaranteed by, a bank.
 
You should read this document together with the preliminary terms describing the offering and the related product supplement and prospectus, each of which can be accessed via the hyperlinks below.
 
 
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.