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Published on 12/3/2010 in the Prospect News Structured Products Daily.

Morgan Stanley plans buffered jump securities tied to S&P 500 index

By Jennifer Chiou

New York, Dec. 3 - Morgan Stanley plans to price 0% buffered jump securities due Dec. 30, 2014 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the final index level is greater than the initial index level, the payout at maturity will be par plus the greater of the index return and the minimum upside payment of 32% to 36% that will be set at pricing. Investors will receive par if the index declines by 15% or less and will lose 1% for every 1% that it declines beyond 15%.

The notes (Cusip: 617482PV0) will price on Dec. 27 and settle on Dec. 30.

Morgan Stanley & Co. Inc. is the agent.


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