What are "Buffered Return Enhanced Notes"?

Buffered Return Enhanced Notes are structured financial products that offer investors the potential for enhanced returns based on the performance of an underlying index or basket of indices. They typically include a "buffer" feature, which offers some protection against losses up to a certain percentage of the principal amount, but investors may still lose a significant portion of their investment if the underlying index performance falls below the buffered level.

What is the purpose of including tax opinions from Sidley Austin llp?

The inclusion of tax opinions from Sidley Austin llp is to provide investors with guidance on the U.S. federal income tax consequences of purchasing, owning, and selling these specific note issuances. This is a common requirement for structured products to help investors understand the tax implications of their investment.

Are these notes a direct investment in the stock market indices?

No, these notes are not a direct investment in the underlying stock market indices. They are debt obligations of JPMorgan Chase & Co. The return on the notes is linked to the performance of the indices, but investors do not own the underlying securities or have any rights as a shareholder in the companies within those indices.

What is the risk associated with these notes?

The primary risks include market risk (the value of the notes depends on the performance of the linked indices), credit risk (the risk that JPMorgan Chase & Co. may default on its obligations), and liquidity risk (the notes may not be easily tradable in the secondary market). Additionally, the "buffer" feature only protects against losses up to a certain level, and investors can still lose a substantial portion of their principal if the indices perform poorly.

JPMORGAN CHASE & CO 8-K SEC Disclosure

Summary

JPMorgan Chase & Co. (JPM) filed an 8-K on July 21, 2008, primarily to report on the issuance of two distinct series of "Buffered Return Enhanced Notes." These notes are structured financial products linked to various market indices, offering potential enhanced returns but also carrying specific risks and maturity dates. The filing includes tax opinions from Sidley Austin llp for each series of notes, which are incorporated by reference into a previously filed registration statement.

Key Highlights

1JPM has issued two new series of "Buffered Return Enhanced Notes" with aggregate principal amounts of $1,247,000 and $3,440,000.
2The notes are linked to performance of specific market indices, including the Russell 2000®, S&P MidCap 400®, S&P 500®, MSCI EAFE®, iShares® MSCI Emerging Markets Index Fund, and Financial Select Sector SPDR® Fund.
3The first series of notes matures on July 23, 2013, and is linked to an equally weighted basket of the Russell 2000® Index and the S&P MidCap 400® Index.
4The second series of notes matures on July 22, 2011, and is linked to a more complex weighted basket of several equity indices and ETFs.
5The filing includes tax opinions from Sidley Austin llp, indicating the tax treatment of these note issuances.
6These exhibits are incorporated by reference into JPMorgan Chase & Co.'s existing Registration Statement on Form S-3ASR.

JPMORGAN CHASE & CO 8-K Report, Exhibit Filing (Jul 22, 2008)

Summary

Key Highlights

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