What are "Principal at Risk Securities"?

Principal at Risk Securities are financial instruments where the return of the principal amount invested is not guaranteed. The repayment of principal is contingent upon certain market conditions or the performance of an underlying asset, such as a stock index. If the underlying asset performs poorly, investors may lose some or all of their principal.

What is the purpose of this 8-K filing?

The primary purpose of this 8-K filing is to publicly disclose the forms of the newly issued Medium-Term Notes, Series K, and to provide a legal opinion regarding these notes. This filing ensures compliance with SEC regulations for significant new debt offerings.

Are these notes a direct investment in the Russell 2000® or S&P 500® indices?

No, these are not direct investments. The notes are linked to the performance of these indices, meaning their value and potentially the return of principal are dependent on how these indices perform. They are derivative-like instruments structured by Wells Fargo.

Where can I find more detailed information about these notes?

The detailed terms and conditions of these notes can be found within the exhibits filed with this 8-K report, specifically the forms of the notes themselves (Exhibits 4.1 and 4.2). Investors should also refer to the accompanying Registration Statement on Form S-3 (File No. 333-202840) for a more comprehensive understanding of the offering.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This 8-K filing by Wells Fargo & Company/MN (WFC) on February 26, 2016, primarily concerns the issuance of new financial instruments. Specifically, the company is filing forms related to its Medium-Term Notes, Series K, which are structured as "Principal at Risk Securities". These notes are linked to the performance of two major stock market indices: the Russell 2000® Index and the S&P 500® Index. The filing is intended to fulfill disclosure requirements related to these new debt issuances, which have specific maturity dates and are subject to risk based on the performance of the underlying indices. Investors should note that the term "Principal at Risk" suggests that the principal amount invested may not be fully returned if the linked indices perform unfavorably.

Key Highlights

1Wells Fargo & Company is issuing Medium-Term Notes, Series K.
2These notes are classified as "Principal at Risk Securities", indicating potential loss of principal.
3Two specific note series are being issued, linked to the Russell 2000® Index and the S&P 500® Index.
4The Russell 2000® linked notes have a maturity date of February 28, 2022.
5The S&P 500® linked notes have a maturity date of February 26, 2019.
6The filing includes the forms of these notes and a legal opinion from Faegre Baker Daniels LLP.
7This is part of a broader Registration Statement on Form S-3 filed by Wells Fargo & Company.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Feb 26, 2016)

Summary

Key Highlights

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