What are Principal at Risk Securities?

Principal at Risk Securities (PARS) are a type of structured financial product where the return of principal is not fully guaranteed. In the event of adverse market movements or specific triggers related to the underlying asset (in this case, the iShares® MSCI Emerging Markets ETF), investors could lose a portion or all of their principal investment.

What is the iShares® MSCI Emerging Markets ETF?

The iShares® MSCI Emerging Markets ETF is an exchange-traded fund that tracks the performance of emerging market equities as defined by the MSCI Emerging Markets Index. It provides investors with exposure to companies in developing economies, which can be more volatile but also offer higher growth potential than developed markets.

What is the purpose of filing the Form 8-K?

Form 8-K is used by publicly traded companies to disclose material events that occur between the regular filing of quarterly and annual reports. In this instance, the purpose is to officially report the issuance of these new financial instruments and to provide the necessary documentation, including the note form and legal opinion, to the SEC and the public.

What is the significance of the legal opinion from Faegre Baker Daniels LLP?

The legal opinion from Faegre Baker Daniels LLP likely confirms the legality and compliance of the Notes' structure and terms with relevant securities laws and regulations. It provides assurance to investors and regulators that the offering has been reviewed by legal counsel.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This Current Report (8-K) filed by Wells Fargo & Company on July 11, 2016, primarily serves to disclose the issuance of new financial instruments. Specifically, the company has issued Medium-Term Notes, Series K, Principal at Risk Securities Linked to the iShares® MSCI Emerging Markets ETF. This filing includes the form of these notes and the legal opinion from Faegre Baker Daniels LLP regarding their structure and terms.

Key Highlights

1Wells Fargo & Company issued Medium-Term Notes, Series K.
2These notes are structured as Principal at Risk Securities.
3The performance of the Notes is linked to the iShares® MSCI Emerging Markets ETF.
4The filing includes the form of the Notes as an exhibit.
5A legal opinion from Faegre Baker Daniels LLP concerning the Notes is also provided.
6This issuance is related to a previously filed Registration Statement on Form S-3.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Jul 11, 2016)

Summary

Key Highlights

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