MORGAN STANLEY — Capital/Financing Update 2012

Nov 6, 2012

Free Writing Prospectus Registration Statement No. 333-178081 Dated November 6, 2012 Filed Pursuant To Rule 433
●	Morgan Stanley
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World Target Equity Alpha (ER)

Morgan Stanley Target Equity Index Family

The Target Equity Alpha Index (ER) is a market-neutral strategy, which
represents the outperformance of a regional Target Equity Index against the
relevant benchmark. Each alpha index rebalances monthly and is expressed as
long-short excess return index.

The World Target Equity Alpha Index (ER) is part of the Target Equity Index
Family, a series of indices that seek to identify undervalued stocks that could
generate attractive returns. The indices screen stocks using some of the
valuation metrics used by private equity investors and corporate buyers to
identify their targets. There are World, Europe, Asia, US, UK, Japan and a
Global Shariah compliant index available. The indices rebalance quarterly and
are independently calculated daily by SandP.

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Absolute returns

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Source: Morgan Stanley as at October 31, 2012; Excess Return = (ER), Total
Return = (TR)

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Annual returns

02 03 04 05 06 07 08 09 10 11 12
Annual return
World Target Equity Alpha 24.7% 18.0% 17.4% 6.2% 17.9% 8.3% -5.9% 34.7% -0.5% -4.8% -7.4%
World Target Equity 1.3% 57.5% 35.1% 16.6% 41.6% 18.1% -45.3% 70.6% 11.3% -10.3% 5.4%
MSCI World -19.5% 33.8% 15.2% 10.0% 20.7% 9.6% -40.3% 30.8% 12.3% -5.0% 12.8%
Volatility
World Target Equity Alpha 13.0% 7.9% 7.1% 7.3% 7.0% 7.0% 20.7% 17.9% 5.9% 8.7% 9.2%
World Target Equity 19.6% 13.3% 11.3% 11.0% 13.4% 15.9% 41.3% 34.5% 18.5% 24.5% 20.8%
MSCI World 20.3% 13.6% 9.5% 7.9% 9.9% 12.8% 32.5% 23.0% 16.5% 21.3% 13.0%
Risk-adjusted returns**
World Target Equity Alpha 1.90 2.27 2.47 0.84 2.58 1.17 -0.29 1.95 -0.09 -0.55 -0.80
World Target Equity 0.06 4.33 3.11 1.51 3.11 1.14 -1.10 2.04 0.61 -0.42 0.26
MSCI World -0.96 2.48 1.60 1.27 2.09 0.75 -1.24 1.34 0.75 -0.24 0.99

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Source: Morgan Stanley; * data until October 31, 2012 ** Standard deviation of
daily returns, annualized

*** Annual return / volatility; Returns prior to the Index launch, from April
4, 2001 through October 31, 2012, are simulated based on historical data.
Returns from July 1, 2007 through October 31, 2012 reflect actual results.

The various performance-related comparisons between World Target Equity Alpha
(ER), World Target Equity and the MSCI World are for informational purposes
only. There is no guarantee that the World Target Equity Alpha Index will have
positive performance or will outperform the World Target Equity or MSCI World.
No one can guarantee short-term or long-term performance. The stock selection
for the World Target Equity Index could select stocks that underperform the
benchmark index, possibly significantly.

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Index facts

Bloomberg ticker MSPIWTDA Currency USD
Ric .MSPIWTDA Index type Excess return
Calculation Agent
and Index Sponsor Morgan Stanley Rebalancing frequency Monthly

Please refer to important information at the end of this material |

Morgan Stanley [GRAPHIC OMITTED] World Target Equity Alpha (ER) -------------------------------------------------------------------------------- Volatility - rolling 12 month -------------------------------------------------------------------------------- [GRAPHIC OMITTED] -------------------------------------------------------------------------------- Source: Morgan Stanley; Past performance (actual or simulated) is not an indicator of future performance Monthly returns Monthly return profile ----------------------------------------------------- ---------------------- World Target Equity World Target Equity Alpha (ER) (USD, TR) MSCI World (TR) -1 Oct-12 2.3% 1.5% -0.6% -2 Sep-12 0.0% 3.3% 2.8% -3 Aug-12 -0.7% 2.3% 2.6% -4 Jul-12 -2.3% -0.9% 1.3% -5 Jun-12 -0.4% 5.5% 5.1% [GRAPHIC OMITTED] -6 May-12 -4.7% -14.0% -8.5% -7 Apr-12 -2.5% -3.6% -1.1% -8 Mar-12 -3.5% -2.2% 1.3% -9 Feb-12 0.8% 5.9% 4.9% 10 Jan-12 3.6% 9.5% 5.0% 11 Dec-11 -1.8% -2.1% 0.0% 12 Nov-11 10.0% -3.1% -11.3% -------------------------------------------------------------------------------- Source: Morgan Stanley as at October 31, 2012; Past performance (actual or simulated) is not an indicator of future performance. Important information Morgan Stanley has filed a registration statement (including a prospectus), and will file a pricing supplement, with the SEC for any offering to which this communication relates. Before you invest in any offering, you should read the prospectus in that registration statement, the applicable pricing supplement and other documents Morgan Stanley has filed with the SEC for more complete information about Morgan Stanley and that offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov . Alternatively, Morgan Stanley will arrange to send you the prospectus if you request by calling toll free 1-800-584-6837, or you may request a copy from any other dealer participating in the offering. This material was prepared by sales, trading or other non-research personnel of Morgan Stanley and Co. LLC (together with its affiliates, hereinafter "Morgan Stanley"). This material was not produced by a Morgan Stanley research analyst. Unless otherwise indicated, these views may differ from those of the Morgan Stanley fixed income or equity research department or others in the firm. The Target Equity principles and methodology described herein may not work in every circumstance or with respect to the financial information of every company. The measures and factors considered in the Target Equity analysis are not necessarily correlated with financial or market performance of the constituent companies and may fail to highlight negative information or data that could adversely affect the Target Equity Index performance or an investment related to Target Equity. In addition, the Target Equity principles are subject to change and may not always achieve their intended results. Performance data for the index prior to the Index Inception Date has been calculated retrospectively, based on simulated historical performance. Retrospective index calculation based on simulated performance is purely hypothetical and may not be an accurate or meaningful comparison. Past performance (actual or simulated) is not necessarily indicative of future results. No representation or warranty is made that any returns indicated will be achieved. Investments and services are offered through Morgan Stanley and Co. LLC, member SIPC. Copyright [C] by Morgan Stanley 2012, all rights reserved.