What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to disclose a tax opinion from Davis Polk & Wardwell concerning 11.00% Reverse Exchangeable Notes due April 30, 2008, issued by JPMorgan Chase & Co. and linked to the common stock of Arch Coal, Inc.

What are these 'Reverse Exchangeable Notes'?

Reverse Exchangeable Notes are a type of structured product where the investor receives periodic coupon payments (in this case, 11.00% annually) and the principal repayment at maturity is linked to the performance of an underlying asset. In this specific case, the notes are linked to the common stock of Arch Coal, Inc. The principal repayment could be in cash or the underlying shares, depending on the terms and the stock's performance relative to a predetermined barrier price.

Why is a tax opinion included in the filing?

A tax opinion from a reputable law firm like Davis Polk & Wardwell is typically included to provide investors with assurance regarding the tax treatment of the income and principal repayment associated with the notes. This helps investors understand the potential tax implications of holding these securities.

What is the significance of Arch Coal, Inc. being the underlying asset?

The performance of the 11.00% Reverse Exchangeable Notes is directly tied to the stock price of Arch Coal, Inc. If Arch Coal's stock price performs poorly (falls below a certain level), investors could lose a portion or all of their principal. Conversely, if the stock performs well, the notes will mature as planned, but the upside potential is typically capped by the coupon payments.

JPMORGAN CHASE & CO 8-K SEC Disclosure

Summary

JPMorgan Chase & Co. filed an 8-K on April 30, 2007, primarily to disclose a tax opinion from Davis Polk & Wardwell. This opinion pertains to 11.00% Reverse Exchangeable Notes due April 30, 2008, which are linked to the common stock of Arch Coal, Inc. This filing indicates the issuance or significant structuring of a specific debt instrument with equity-linked features. For investors, this report signifies a particular financial product being offered or managed by JPM. The inclusion of a tax opinion suggests a level of regulatory and legal diligence in the structuring of these notes. Investors should note the details of these notes, including their yield, maturity, and the underlying asset (Arch Coal, Inc. stock), as these factors will influence their risk and return profile.

Key Highlights

1Filing Date: April 30, 2007
2Company: JPMORGAN CHASE & CO. (JPM)
3Report Type: 8-K Current Report
4Key Information: Filing of a tax opinion from Davis Polk & Wardwell.
5Product Involved: 11.00% Reverse Exchangeable Notes due April 30, 2008.
6Underlying Asset: Common Stock of Arch Coal, Inc.
7Purpose: To provide legal and tax certainty regarding the structured note issuance.

JPMORGAN CHASE & CO 8-K Report, Exhibit Filing (Apr 30, 2007)

Summary

Key Highlights

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