Free Writing Prospectus to Preliminary Terms No. 7,856

Registration Statement Nos. 333-250103; 333-250103-01

Dated January 31, 2023; Filed pursuant to Rule 433

Morgan Stanley

2-Year Worst-of INDU, SPX and RTY Buffered PLUS

This document provides a summary of the terms of the Buffered PLUS. Investors must carefully review the accompanying preliminary terms referenced below, product supplement, index supplement and prospectus, and the “Risk Considerations” on the following page, prior to making an investment decision.


Terms

Issuing entity:

Morgan Stanley Finance LLC

Guarantor:

Morgan Stanley

Underlyings:

Dow Jones Industrial AverageSM (INDU), S&P 500® Index (SPX) and Russell 2000® Index (RTY)

Leverage factor:

200%

Maximum payment at maturity:

125% to 130% of principal

Buffer amount:

20% of principal (80% maximum loss)1

Pricing date:

February 28, 2023

Valuation date:

February 28, 2025

Maturity date:

March 5, 2025

CUSIP:

61774TA85

Preliminary terms:

 

https://www.sec.gov/Archives/edgar/data/895421/000183988223002467/ms7856_fwp-01229.htm

 

1All payments are subject to our credit risk

 

Hypothetical Payout at Maturity1

The payment at maturity will be based solely on the performance of the worst performing underlying, which could be any underlying. The graph and table below illustrate the payment at maturity depending on the performance of the worst performing underlying.

 

 

Change in Worst Performing Underlying

Return on Buffered PLUS

+50.00%

25.00%*

+40.00%

25.00%*

+30.00%

25.00%*

+20.00%

25.00%*

+12.50%

25.00%

+10.00%

20.00%

+5.00%

10.00%

0.00%

0.00%

-10.00%

0.00%

-20.00%

0.00%

-30.00%

-10.00%

-40.00%

-20.00%

-50.00%

-30.00%

-60.00%

-40.00%

-70.00%

-50.00%

-80.00%

-60.00%

-90.00%

-70.00%

*Assumes a maximum payment at maturity of 125% of principal