What are the Medium-Term Notes, Series K, Principal at Risk Securities?

These are debt securities issued by Wells Fargo that have a maturity term. Their value and potential return of principal are linked to the performance of the MSCI EAFE Index®. The 'Principal at Risk' aspect means that investors could lose some or all of their initial investment if the linked index performs poorly.

What is the MSCI EAFE Index®?

The MSCI EAFE Index® is a widely used benchmark that represents large and mid-cap equity performance across developed markets in Europe, Australasia, and the Far East. It is used to track the performance of these international stock markets.

What should an investor consider before investing in these notes?

Investors should carefully review the Form of Note (Exhibit 4.1) and understand the specific terms, risks, and potential returns. Key considerations include the exact formula for principal protection (or lack thereof), how the MSCI EAFE Index® performance affects the principal, any fees or charges, and the creditworthiness of Wells Fargo as the issuer.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Q: Why is Wells Fargo filing this 8-K report?

Wells Fargo is filing this report to formally disclose the terms and documentation of the newly issued Medium-Term Notes, Series K, Principal at Risk Securities to the public and regulators. This includes filing the form of the note itself and a legal opinion on the notes.

Summary

This Form 8-K filing from Wells Fargo & Company (WFC), dated April 6, 2016, primarily serves to disclose the issuance of new financial products. Specifically, it announces the creation of Medium-Term Notes, Series K, Principal at Risk Securities, which are linked to the performance of the MSCI EAFE Index®. The filing's main purpose is to provide investors with the official documentation for these notes, including their form and the legal opinion from Faegre Baker Daniels LLP regarding their structure. For investors, this filing indicates Wells Fargo's continued activity in offering structured products that derive their value from underlying market indices. The 'Principal at Risk' designation suggests that the principal amount invested may be subject to loss depending on the performance of the MSCI EAFE Index®. Investors considering these notes should thoroughly understand the associated risks and the specific terms outlined in the note documentation before making any investment decisions.

Key Highlights

1Wells Fargo & Company issued Medium-Term Notes, Series K, Principal at Risk Securities.
2These notes are linked to the performance of the MSCI EAFE Index®.
3The filing includes the form of the Medium-Term Notes as an exhibit.
4An opinion from Faegre Baker Daniels LLP regarding the Notes is also filed.
5The purpose of the filing is to provide official documentation for this new issuance.
6This signifies Wells Fargo's engagement in offering structured financial products.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Apr 6, 2016)

Summary

Key Highlights

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