What are Principal at Risk Securities?

Principal at Risk Securities (PARS) are investment products where the return is linked to the performance of an underlying asset or index, but the investor's principal investment is not fully protected. If the underlying asset or index performs poorly, the investor may lose a portion or all of their initial investment.

What is the risk associated with these Wells Fargo Notes?

The primary risk is that the value of the Notes is tied to the performance of the lowest performing of the S&P 500®, Russell 2000®, and EURO STOXX 50® indices. If the performance of the worst-performing index is negative, investors could lose a portion or all of their principal investment. The specific terms and conditions of the potential loss are detailed within the full Note documentation.

What is the purpose of filing the form of the Note and the legal opinion?

Filing the form of the Note provides investors and regulators with the exact terms, conditions, and risk factors associated with this specific debt instrument. The legal opinion from Faegre Baker Daniels LLP confirms the legality and regulatory compliance of the Notes, offering an additional layer of assurance regarding the offering.

When do these Notes mature?

These Medium-Term Notes, Series K, have a maturity date of September 7, 2021.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This 8-K filing from Wells Fargo & Company/MN (WFC), filed on September 5, 2017, primarily serves to disclose the issuance of specific financial instruments. The company has issued Medium-Term Notes, Series K, which are characterized as Principal at Risk Securities. These notes are linked to the performance of three major stock market indices: the S&P 500® Index, the Russell 2000® Index, and the EURO STOXX 50® Index. The key characteristic of these securities is that their principal value is at risk, meaning investors could lose a portion or all of their initial investment depending on the performance of the underlying indices.

Key Highlights

1Wells Fargo issued new Medium-Term Notes, Series K, on September 4, 2017.
2These notes are classified as 'Principal at Risk Securities', indicating potential loss of principal for investors.
3The performance of these notes is directly linked to the lowest performing of three specific stock market indices: S&P 500®, Russell 2000®, and EURO STOXX 50®.
4The maturity date for these notes is September 7, 2021.
5The filing includes the form of the Notes and the legal opinion from Faegre Baker Daniels LLP regarding these securities.
6This filing is made in connection with a previously filed Registration Statement on Form S-3.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Sep 5, 2017)

Summary

Key Highlights

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