MORGAN STANLEY — Capital/Financing Update 2011

Nov 21, 2011

File Pursuant to Rule 424(b)(3)

Registration Statement No. 333- 178081

Prospectus Addendum to

the Prospectus dated November 21, 2011

DEPOSITARY SHARES

EACH REPRESENTING 1/1,000 TH OF A SHARE OF

FLOATING RATE NON-CUMULATIVE PREFERRED STOCK, SERIES A

You should read the accompanying prospectus supplement, which gives the specific terms of the offered depositary shares, together with the accompanying prospectus dated November 21, 2011 of Morgan Stanley. When you read the prospectus supplement with the specific terms of the offered depositary shares, please note that all references in the prospectus supplement to the prospectus dated January 25, 2006, or to any sections of that document, should refer instead to the accompanying prospectus dated November 21, 2011, or to the corresponding section of the accompanying prospectus.

The accompanying prospectus dated November 21, 2011 supersedes the prospectus dated January 25, 2006.

Morgan Stanley & Co. LLC will, and other affiliates of Morgan Stanley may, use this prospectus addendum in connection with offers and sales of the depositary shares in market-making transactions.

The depositary shares are not deposits or savings accounts and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency or instrumentality, nor are they obligations of, or guaranteed by, a bank.

MORGAN STANLEY

November 21, 2011