What are Principal at Risk Securities?

Principal at Risk Securities are investment products where the return of principal is not guaranteed and may be subject to the performance of an underlying asset or index. In this case, the principal is linked to the performance of the iShares® MSCI EAFE ETF and the iShares® MSCI Emerging Markets ETF. If these ETFs underperform significantly, investors may lose a portion or all of their initial investment.

What is the purpose of this 8-K filing?

The primary purpose of this 8-K filing is to publicly disclose the details of the newly issued Medium-Term Notes, Series K, Principal at Risk Securities. It includes the specific terms of the notes and legal opinions related to their issuance, which are required for public companies.

Where can I find more detailed information about these notes?

More detailed information would typically be found in the prospectus or offering memorandum associated with these Medium-Term Notes, Series K, Principal at Risk Securities. While this 8-K filing includes the form of the note and a legal opinion, a separate prospectus would contain comprehensive details on risks, terms, fees, and potential returns.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Q: What does 'Worst Performing of the iShares® MSCI EAFE ETF and the iShares® MSCI Emerging Markets ETF' mean for my investment?

This means the performance of your investment in these notes will be determined by the ETF that performs the worst between the iShares® MSCI EAFE ETF (which tracks developed markets in Europe, Australasia, and the Far East) and the iShares® MSCI Emerging Markets ETF. If the worst-performing ETF experiences a significant decline, your principal may be at risk.

Summary

This Form 8-K filing by Wells Fargo & Company on March 14, 2016, primarily serves to disclose the issuance of specific financial instruments: Medium-Term Notes, Series K, Principal at Risk Securities. These notes are linked to the performance of two exchange-traded funds (ETFs): the iShares® MSCI EAFE ETF and the iShares® MSCI Emerging Markets ETF, with a maturity date of September 12, 2019. The filing includes the form of these notes and a legal opinion from Faegre Baker Daniels LLP regarding their issuance. For investors, this report signifies an addition to Wells Fargo's debt offerings, with terms tied to international equity market performance. The 'Principal at Risk' designation indicates that investors could lose a portion or all of their principal investment if the underlying ETFs perform poorly. Investors should carefully review the note's prospectus and terms to understand the specific risks and potential returns associated with this security.

Key Highlights

1Wells Fargo & Company issued Medium-Term Notes, Series K, Principal at Risk Securities on March 14, 2016.
2These notes are linked to the performance of the iShares® MSCI EAFE ETF and the iShares® MSCI Emerging Markets ETF.
3The maturity date for these notes is September 12, 2019.
4The filing includes the form of the note and a legal opinion from Faegre Baker Daniels LLP.
5The 'Principal at Risk' feature implies potential loss of invested principal based on ETF performance.
6This issuance relates to a Registration Statement on Form S-3 filed previously.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Mar 14, 2016)

Summary

Key Highlights

Frequently Asked Questions