8-KExhibits & Filings

JPMORGAN CHASE & CO 8-K Report, Exhibit Filing (Aug 28, 2006)

Filed August 28, 2006For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

This 8-K filing from JPMorgan Chase & Co. (JPM) on August 28, 2006, primarily reports on an exhibit: a Tax Opinion from Davis Polk & Wardwell. This opinion pertains to the company's 32.0% Reverse Exchangeable Notes due August 29, 2007. These notes are linked to the performance of the least performing common stock within the Dow Jones Industrial Average (excluding JPM's own stock). For investors, this filing is significant as it provides a legal and tax assessment of a specific financial product offered by the company. The inclusion of a tax opinion from a reputable firm like Davis Polk & Wardwell lends credibility to the structure and potential tax implications for investors in these notes. The nature of the notes, tied to the worst-performing stock in the DJIA, suggests a potentially complex investment strategy with a specific risk/reward profile.

Key Highlights

  • 1Filing type: 8-K Current Report
  • 2Company: JPMORGAN CHASE & CO. (JPM)
  • 3Filing date: August 28, 2006
  • 4Event date: August 23, 2006
  • 5Key exhibit: Tax Opinion from Davis Polk & Wardwell
  • 6Product detailed: 32.0% Reverse Exchangeable Notes due August 29, 2007
  • 7Note structure: Linked to the least performing common stock in the Dow Jones Industrial Average (excluding JPM stock)

Frequently Asked Questions

The main purpose of this 8-K filing is to report on an exhibit, specifically a Tax Opinion from Davis Polk & Wardwell, concerning JPMorgan Chase & Co.'s 32.0% Reverse Exchangeable Notes due August 29, 2007.

These are financial notes issued by JPMorgan Chase & Co. with a stated coupon of 32.0% and a maturity date of August 29, 2007. Their performance and payout are linked to the performance of the least performing common stock within the Dow Jones Industrial Average, with the exclusion of JPMorgan Chase & Co.'s own stock.

The inclusion of a Tax Opinion from a law firm like Davis Polk & Wardwell is to provide investors with an assessment of the tax implications associated with investing in these specific notes. It helps to clarify the tax treatment for potential buyers of this financial product.

The primary investment risk is that the value of the notes at maturity will be negatively impacted if the least performing stock in the Dow Jones Industrial Average (excluding JPM) experiences a significant decline. Investors could potentially lose a substantial portion or all of their principal depending on the performance of that specific stock.