While some people have speculated that Morgan Freeman (born Morgan Porterfield Freeman Jr. on June 1, 1937 in Memphis, Tennessee) had a prosthetic hand, what he's wearing is actually a Compression Glove.
In 2008 Mr. Freeman was involved in a car accident, reportedly with his mistress, in which he flipped his car several times.
Also injured in the accident was Demaris Meyer, who was suspected of being Freeman's mistress, though she vehemently denies this accusation (4 days after the crash he announced that he had been in the process of divorcing his wife of 26 years, Myrna Colley-Lee).
Colley-Lee was his second wife, he was married to Jeanette Adair Bradshaw from October 22, 1967 to November 18, 1979.
He originally announced that his hand was paralyzed, but as his gloves have been getting smaller, it looks like he may be recovering use of it.