New Issue: Morgan Stanley prices $16.77 million return enhanced review notes linked to S&P 500

By Jennifer Chiou

New York, Jan. 25 - Morgan Stanley priced $16.77 million of 0% return enhanced review notes due Feb. 8, 2012 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at 108.1% of par if the index's closing level on April 21, July 21 or Oct. 21, 2011 is 104.05% or more of the initial level.

If the notes are not called and the final index level is greater than the initial index level, the payout at maturity will be par plus double the increase in the index, subject to a maximum return of 8.1%. Investors will be exposed to any index decline.

Morgan Stanley & Co. Inc., J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA are the agents.

Issuer:	Morgan Stanley
Issue:	Return enhanced review notes
Underlying index:	S&P 500
Amount:	$16,769,000
Maturity:	Feb. 8, 2012
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus double any index gain, up to maximum return of 8.1%; exposure to losses
Call:	Automatically at 108.1% of par if the index's closing level on April 21, July 21 or Oct. 21, 2011 is 104.05% or more of the initial level
Initial index level:	1,283.35
Pricing date:	Jan. 21
Settlement date:	Jan. 28
Agents:	Morgan Stanley & Co. Inc., J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA
Fees:	0.85%
Cusip:	617482QU1

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