What are 'Principal at Risk Securities'?

Principal at Risk Securities are investment products where the return is tied to the performance of an underlying asset or index. However, unlike traditional fixed-income investments, investors may lose a portion or all of their principal investment if the underlying asset or index performs unfavorably. In this case, the performance is linked to the lowest performing of the S&P 500®, Dow Jones Industrial AverageSM, and Russell 2000®.

What is the purpose of this 8-K filing?

This 8-K filing is primarily to inform the public and regulators about the issuance of new Medium-Term Notes. It serves to officially record the terms of these notes by filing the note's form and a related legal opinion as exhibits.

Who is Faegre Baker Daniels LLP and why is their opinion included?

Faegre Baker Daniels LLP is a law firm. Their legal opinion is typically included to provide assurance on the legality and structure of the financial instrument being issued, confirming that the notes have been established in accordance with relevant laws and regulations.

Are these notes a direct investment in the stock market indices?

No, these notes are not a direct investment in the stock market indices themselves. Instead, their value and potential returns (or losses) are derived from the performance of these indices. They are a derivative product structured by Wells Fargo.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company (WFC) filed an 8-K on September 13, 2017, to disclose the issuance of new financial instruments: Medium-Term Notes, Series K, Principal at Risk Securities. These notes are linked to the performance of three major U.S. stock market indices: the S&P 500®, the Dow Jones Industrial AverageSM, and the Russell 2000®. The specific details of these notes, including their maturity date of September 13, 2022, are outlined in the filing. This filing primarily serves to provide investors with the official documentation related to this debt issuance. It includes the form of the note itself and a legal opinion from Faegre Baker Daniels LLP. Investors interested in WFC's capital raising activities or in understanding the company's diverse financial products should review these exhibits for a comprehensive understanding of the terms and conditions associated with these Medium-Term Notes.

Key Highlights

1Wells Fargo & Company (WFC) announced the issuance of Medium-Term Notes, Series K.
2These notes are 'Principal at Risk Securities', meaning investors may lose principal if underlying assets perform poorly.
3The performance of the notes is linked to the lowest performing of three key U.S. stock indices: S&P 500®, Dow Jones Industrial AverageSM, and Russell 2000®.
4The maturity date for these notes is September 13, 2022.
5The filing includes the form of the note, providing the specific terms and conditions.
6A legal opinion from Faegre Baker Daniels LLP regarding the notes is also provided as an exhibit.
7This filing is related to a Registration Statement on Form S-3 (File No. 333-202840).

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Sep 13, 2017)

Summary

Key Highlights

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