Morgan Stanley Finance LLC has recently unveiled a Free Writing Prospectus regarding their 5-Year Worst-of NDX, RTY and INDU Trigger PLUS. This particular investment opportunity features a leverage factor of 400% and a maximum payment at maturity ranging from 173% to 178% of the principal, contingent on the performance of the worst performing underlying index.
Prior to making any investment commitments, prospective investors are strongly encouraged to thoroughly examine the accompanying preliminary pricing supplement, product supplement, index supplement, and prospectus. It is of paramount importance to take into account the “Risk Considerations” delineated in the prospectus.
This investment offering is being issued by Morgan Stanley Finance LLC, with the assurance of Morgan Stanley. The underlying indices encompass the Nasdaq-100 Index, and the Trigger PLUS boast a trigger level equivalent to 65% of the initial index value for each underlying index. The pricing date for this investment is slated for June 28, 2024, with a valuation date of June 28, 2029, and a maturity date of July 3, 2029.
Investors must be mindful that all payments are subject to the credit risk of Morgan Stanley. The CUSIP for this investment is 61776MEM3. The company has also disclosed a hypothetical payout at maturity, predicated on the worst performing underlying index’s performance, offering a detailed depiction of potential returns contingent on the index’s performance.
As mentioned earlier, it is critical for potential investors to meticulously review the accompanying preliminary pricing supplement. All pertinent documents are accessible on the SEC website to furnish comprehensive information about the issuer and the offering. In addition, the issuer, underwriter, or any dealer partaking in the offering can provide the prospectus upon request by dialling the toll-free number provided.
Taking into consideration the underlying indices involved in this investment, inclusive of historical performance and risk factors, is vital for well-informed decision-making. Consideration of the investment’s associated risks, such as credit risk, market price influence, and limitations of appreciation potential, is essential. It is imperative to note that the Trigger PLUS will not be listed on any securities exchange, and secondary trading may be restricted.
Moreover, the investment is subject to U.S. federal income tax consequences and potential adjustments to the underlying indices, which could influence the value of the Trigger PLUS.
In summation, the 5-Year Worst-of NDX, RTY and INDU Trigger PLUS presented by Morgan Stanley Finance LLC represents an investment opportunity accompanied by specific terms and risks that investors must carefully evaluate. It is highly recommended for potential investors to seek guidance from financial and tax advisors to make well-informed decisions regarding this investment offering.