Friday the 13th, Tesla Structured Note, Market Risk

Missional Money Podcast

Tesla Structured Note Example

Tesla Structured Note example Disclosure: The following content is for educational purposes. The Tesla Structured Note described is fictional.

Sample Morgans Stanley Cup 2.5 Year Tesla Structured Note

Features: 20% Quarterly Distribution

TSLA is the ticker for Tesla

AutoCall (60%/60%)

Issuer Sample Morgans Stanley Cup Underlyings Tesla (TSLA) Pricing / Settle Date Friday the 13th of May, 2022 / May 25, 2022 Maturity Date November 27, 2024 (2.5ac6m) Price 100 Interest Rate 20% subject to TSLA closing above 60% of initial Principal Barrier 60% of initial on TSLA (observed only at maturity, Cash Settle) Callable November 27, 2022 Automatically if all > initial (Quarterly Thereafter) Coupon Frequency Quarterly Observation / Quarterly Pay Payment at Maturity - If the Final Value is greater than or equal to 60% of initial: Par- If the Final Value is less than 60% of initial: Par + return of least performer. Cusip 123456789 Prospectus The Actual Prospectus - Link to Prospectus

STRATEGY OVERVIEW / EXAMPLES

• Investors will receive a coupon of 20% if the closing value TSLA is equal to or above 60% of initial on observation day.
• If TSLA closes at or above 60% of initial, you will receive the relevant annualized coupon for that period.
• If TSLA closes below 60% of initial, you will receive a 0% annualized coupon for that period.
• If TSLA closes above 100% of initial on a relevant observation date the note is automatically called at par + coupon.
• If TSLA closes below 60% of initial at maturity, the investor realizes full downside of least performer.
• For example, if TSLA is down 41% at maturity, the note will mature at 59%.

Structured Notes are Not for Most Investors - Get Your Risk Number Click Here