What are 'Principal at Risk Securities'?

'Principal at Risk Securities' are investment products where the investor's principal amount is not fully protected. The return of principal, or a portion thereof, is contingent upon the performance of an underlying asset or index. If the underlying performance is unfavorable, investors may lose some or all of their initial investment.

What is the MSCI EAFE Index®?

The MSCI EAFE Index® is a stock market index that represents developed market stocks in Europe, Australasia, and the Far East. It is widely used as a benchmark for international equity portfolio performance.

What is the S&P 500® Index and the Russell 2000® Index?

The S&P 500® Index is a stock market index tracking the performance of 500 of the largest publicly traded companies in the United States. The Russell 2000® Index tracks the performance of 2000 small-cap U.S. companies. In this context, the notes are linked to whichever of these two indices performs worse.

Where can I find the detailed terms and conditions of these notes?

The detailed terms and conditions of these notes are available as exhibits within this Form 8-K filing. Specifically, Exhibits 4.1 and 4.2 contain the forms of the respective Medium-Term Notes, Series K.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This Form 8-K filing by Wells Fargo & Company (WFC) on March 8, 2017, primarily serves to disclose the issuance of new financial products: Medium-Term Notes, Series K. These notes are structured as 'Principal at Risk Securities,' meaning investors could lose a portion of their principal investment based on the performance of underlying financial indices. Specifically, two types of notes were issued: one linked to the MSCI EAFE Index® and another linked to the performance of the S&P 500® Index and the Russell 2000® Index. The filing includes the official forms of these notes and a legal opinion from Faegre Baker Daniels LLP regarding their issuance. For investors, this signifies the company's ongoing activity in creating and offering structured financial products, with associated risks tied to market performance.

Key Highlights

1Wells Fargo & Company issued new Medium-Term Notes, Series K, on March 7, 2017.
2These notes are classified as 'Principal at Risk Securities,' indicating potential loss of principal based on market performance.
3One series of notes is linked to the MSCI EAFE Index®.
4Another series of notes is linked to the lowest performing of the S&P 500® Index and the Russell 2000® Index.
5The maturity date for these notes is March 8, 2019.
6The filing includes the forms of these Medium-Term Notes as exhibits.
7A legal opinion from Faegre Baker Daniels LLP concerning the notes is also filed with this report.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Mar 8, 2017)

Summary

Key Highlights

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