Form 424B2 MORGAN STANLEY

0

treaty pari passu with the claims of other unsecured and unsubordinated creditors of Morgan Stanley, including holders of securities issued by Morgan Stanley.

??The amount payable on the Trigger PLUS is not linked to the value of the underlying index until the determination date. The Final Level will be based on the Closing Index Value on the Determination Date, subject to postponement for Non-Index Business Days and certain Market Disruption Events. Even if the value of the underlying index appreciates before the determination date, but then declines before the determination date, the payment at maturity may be lower, and may be significantly lower, than it is. would have been if the Maturity Payment had been linked to the value of the Underlying Index prior to such a decline. Although the actual value of the Underlying Index on the stated Maturity Date or at other times during the Trigger PLUS term may be above the Final Level, payment at maturity will be based solely on the value. closing date of the index on the determination date.

??Investing in the Trigger PLUS is not the same as investing in the underlying index. Investing in the Trigger PLUS is not the same as investing in the Underlying Index or its constituent stocks. Investors in the Trigger PLUS will not have any voting rights or the right to receive dividends or other distributions or any other rights in respect of the stocks which constitute the underlying index.

??The rate we are prepared to pay for securities of this type, maturity and issue size is likely to be lower than the rate implied by our secondary market credit spreads and advantageous to us. The lower rate and inclusion of the costs associated with issuing, selling, structuring and hedging the Trigger PLUS in the initial issue price reduces the economics of the Trigger PLUS, causing the estimated value of the Trigger PLUS Trigger PLUS is lower than the initial issue price and will negatively affect secondary market prices. Assuming that market conditions or any other relevant factor do not change, the prices, if any, at which brokers, including MS & Co., might be willing to purchase the Trigger PLUS in market transactions. secondary will likely be significantly lower than the initial issue price. , because the secondary market prices will exclude the costs of issue, sale, structuring and hedging which are included in the initial issue price and borne by you and because the secondary market prices will reflect our credit spreads on the secondary market and the bid-offer spread that any broker 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 initial issue price and the lower rate that we are willing to pay as the issuer makes the economic conditions of the Trigger PLUS less. favorable to you than they would otherwise be.

However, since the costs associated with issuing, selling, structuring and hedging the Trigger PLUS are not fully deducted upon issuance, for a period of up to 6 months following the issuance. settlement date, to the extent that MS & Co. may buy or sell the Trigger PLUS on the secondary market, in the absence of changes in market conditions, including those related to the underlying index, and to our credit spreads in the secondary market, it would be based on values ​​greater than the estimated value, and we would expect these higher values ​​to also be reflected in your brokerage account statements.

??The estimated value of the Trigger PLUS is determined by reference to our pricing and valuation models, which may differ from those of other brokers and is not a maximum or minimum price in the secondary market. These pricing and valuation models are proprietary and are based in part on subjective views of certain market data and certain assumptions about future events, which may prove to be incorrect. Therefore, since there is no standard market method for valuing these types of securities, our models may give a higher estimated Trigger PLUS value than those generated by others, including other brokers. in the market, if they attempted to evaluate the PLUS Trigger. In addition, the estimated value on the date of the transaction does not represent a minimum or maximum price at which resellers, including MS & Co., would be willing to purchase your Trigger PLUS in the secondary market (if applicable) at all times. . The value of your Trigger PLUS at any time after the date of this document will vary depending on many factors that cannot be accurately predicted, including our creditworthiness and changes in market conditions. See also “The market price of Trigger PLUS will be influenced by many unforeseeable factors” above.

??The Trigger PLUS will not be listed on any stock exchange and secondary trading may be limited. The Trigger PLUS will not be listed on any stock exchange. Therefore, there may be little or no secondary market for the Trigger PLUS. MS & Co. may, but is not obligated to, make a deal in Trigger PLUS and, if it chooses to make a deal once, may stop doing so at any time. When making a market, it will usually do so for routine secondary market size trades 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 the associated hedging positions, the time remaining to maturity and the likelihood that he will be able to resell the Trigger PLUS. Even if there is a secondary market, it may not provide enough liquidity to


Source link

Share.

About Author

Comments are closed.