What are 'Principal at Risk Securities'?

'Principal at Risk Securities' are a type of investment where the investor's principal amount is not guaranteed and can be lost, in whole or in part, depending on the performance of the underlying asset or index. In this case, the principal is linked to the performance of the S&P 500® Index and the Russell 2000® Index.

How is the return of these Notes determined?

The return of these Notes is determined by the performance of the *lowest performing* of the S&P 500® Index and the Russell 2000® Index. If neither index performs poorly, the investor may receive a positive return, but if one or both perform poorly, the investor may lose some or all of their principal.

What is the purpose of filing the legal opinion?

The legal opinion from Faegre Baker Daniels LLP is typically provided to confirm the legality, validity, and enforceability of the securities being issued. It assures investors that the necessary legal groundwork has been completed for this debt offering.

Does this filing indicate any new financial performance for Wells Fargo?

No, this 8-K filing does not report on Wells Fargo's financial performance. Its sole purpose is to disclose the details and documentation surrounding the issuance of a specific type of debt security (Medium-Term Notes, Series K).

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company (WFC) filed an 8-K on December 9, 2016, to disclose the issuance of new Medium-Term Notes, Series K. These notes are principal-at-risk securities, meaning the principal amount invested is subject to the performance of the underlying assets. Specifically, the return and principal are linked to the lowest performing of the S&P 500® Index and the Russell 2000® Index, with a maturity date of December 10, 2021. The filing primarily serves to provide investors with the documentation related to this new debt offering. It includes the form of the note itself and a legal opinion from Faegre Baker Daniels LLP regarding these securities. Investors considering these notes should pay close attention to the principal-at-risk feature and the dependence on the relative performance of major equity indices.

Key Highlights

1Disclosure of new Medium-Term Notes, Series K issuance by Wells Fargo.
2Notes are 'Principal at Risk Securities', indicating potential loss of invested principal.
3The performance of the Notes is linked to the lowest performing of the S&P 500® Index and the Russell 2000® Index.
4Maturity date for these Notes is set for December 10, 2021.
5The filing includes the form of the Note as an exhibit.
6Legal opinion from Faegre Baker Daniels LLP regarding the Notes is also filed.
7This is part of a broader registration statement on Form S-3.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Dec 9, 2016)

Summary

Key Highlights

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