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Published on 8/29/2011 in the Prospect News Structured Products Daily.

New Issue: Morgan Stanley prices $4.05 million buffered jump securities linked to iShares MSCI EAFE

By Angela McDaniels

Tacoma, Wash., Aug. 29 - Morgan Stanley priced $4.05 million of 0% buffered jump securities due Aug. 30, 2013 linked to the iShares MSCI EAFE index fund, according to an FWP filing with the Securities and Exchange Commission.

If the exchange-traded fund's final share price is greater than the initial share price, the payout at maturity will be par of $10 plus the greater of the fund return and 27.25%. Investors will receive par if the share price declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

Morgan Stanley & Co. LLC is the agent.

Issuer:Morgan Stanley
Issue:Buffered jump securities
Underlying ETF:iShares MSCI EAFE index fund
Amount:$4,046,500
Maturity:Aug. 30, 2013
Coupon:0%
Price:Par of $10.00
Payout at maturity:If ETF finishes above initial share price, par plus greater of ETF return and 27.25%; par if ETF falls by 10% or less; 1% loss for every 1% decline beyond 10%
Initial share price:$50.87
Pricing date:Aug. 25
Settlement date:Aug. 30
Agent:Morgan Stanley & Co. LLC
Fees:2.25%
Cusip:61760P882

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