What are "Principal at Risk Securities"?

"Principal at Risk Securities" are a type of investment product where the return of the investor's principal is not fully guaranteed and can be lost, in whole or in part, depending on the performance of an underlying asset or index. In this case, the principal is linked to the performance of the worst-performing ETF between the iShares MSCI EAFE ETF and the iShares MSCI Emerging Markets ETF.

What is the investment exposure of these notes?

The investment exposure is to the performance of the iShares MSCI EAFE ETF and the iShares MSCI Emerging Markets ETF. Specifically, the structure of the "Principal at Risk Securities" means that the principal repayment will be negatively impacted if the *worst* performing of these two ETFs experiences a significant decline.

What is the purpose of filing this 8-K?

The primary purpose of this 8-K filing is to make public the official documentation related to the issuance of these Medium-Term Notes, Series K. This includes the detailed terms and conditions of the notes themselves (Form of Note) and a legal opinion from Faegre Baker Daniels LLP, which is standard practice for such financial instrument offerings.

What are the key risks associated with these notes?

The key risks include market risk related to the performance of the iShares MSCI EAFE ETF and the iShares MSCI Emerging Markets ETF, particularly the risk that the worst-performing of the two could lead to a loss of principal. Additionally, there are credit risks associated with Wells Fargo & Company as the issuer. Investors should carefully review the full terms of the note to understand all risks involved.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company filed an 8-K report on July 21, 2015, to disclose the issuance of new Medium-Term Notes, Series K. These notes, specifically "Principal at Risk Securities," are linked to the performance of the iShares MSCI EAFE ETF and the iShares MSCI Emerging Markets ETF. The maturity date for these notes is July 22, 2019. This filing primarily serves to make the official documentation for these notes and the legal opinion from Faegre Baker Daniels LLP publicly available. Investors interested in these specific structured products should review the form of the note to understand its principal repayment structure and the conditions under which principal is at risk, as well as the accompanying legal opinion for further details on the offering.

Key Highlights

1Wells Fargo & Company issued Medium-Term Notes, Series K.
2These notes are classified as "Principal at Risk Securities."
3The notes are linked to the performance of two specific ETFs: iShares MSCI EAFE ETF and iShares MSCI Emerging Markets ETF.
4The securities are specifically linked to the *worst performing* of these two ETFs.
5The maturity date for these notes is July 22, 2019.
6The filing includes the form of the note and the legal opinion from Faegre Baker Daniels LLP.
7The filing is related to a Registration Statement on Form S-3 previously filed by Wells Fargo.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Jul 21, 2015)

Summary

Key Highlights

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