Summary
Wells Fargo & Company (WFC) filed an 8-K on August 9, 2017, to disclose the issuance of Medium-Term Notes, Series K, Principal at Risk Securities. These notes are linked to the performance of the S&P 500® Index, the Russell 2000® Index, and the EURO STOXX 50® Index, with a maturity date of August 9, 2027. The primary purpose of this filing is to provide the formal documentation and legal opinion related to this specific financial product. For investors, this filing indicates WFC's continued activity in offering structured financial products. The "Principal at Risk" nature of these notes means that investors' principal is not guaranteed and is subject to the performance of the underlying indices. This suggests the notes are designed for investors seeking potential enhanced returns in exchange for taking on significant risk, specifically tied to the weakest performance among the three major stock indices.
Key Highlights
- 1Wells Fargo issued Medium-Term Notes, Series K, Principal at Risk Securities.
- 2The notes are linked to the performance of the S&P 500®, Russell 2000®, and EURO STOXX 50® Indices.
- 3The maturity date for these notes is August 9, 2027.
- 4The filing includes the form of the note and a legal opinion from Faegre Baker Daniels LLP.
- 5These notes are 'Principal at Risk', meaning investors can lose part or all of their principal investment.
- 6The payout of the notes is tied to the lowest performing of the three specified indices.