What are "Principal at Risk Securities"?

Principal at Risk Securities are investment products where the amount of principal repaid at maturity is dependent on the performance of an underlying asset or index. If the underlying asset or index performs poorly, investors may receive less than their initial principal investment, or in some cases, lose their entire principal.

What is the purpose of this 8-K filing?

The purpose of this 8-K filing is to formally announce and provide the official documentation for the issuance of new Medium-Term Notes. Specifically, it files the forms of these notes and the legal opinion from their counsel, which are required for public disclosure and investor awareness of these financial instruments.

Who are the underlying indices for these new notes?

The underlying indices are the Russell 2000® Index, the Dow Jones Industrial Average®, and the Nasdaq-100 Index®. Some notes are linked to a single index, while others are linked to the performance of the lowest performing among a selection of these indices.

What does the involvement of Faegre Baker Daniels LLP signify?

The involvement of Faegre Baker Daniels LLP, as evidenced by their legal opinion and consent filed with the SEC, indicates that they have reviewed the structure and terms of these Medium-Term Notes and have provided a legal opinion regarding their validity and compliance with relevant regulations. This is a standard procedure for publicly offered debt securities.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company (WFC) filed an 8-K report on September 11, 2018, to disclose the issuance of several series of Medium-Term Notes. These notes are structured as "Principal at Risk Securities," meaning that the principal amount repayable at maturity is linked to the performance of specific stock market indices. This filing is primarily to provide investors and the public with the official documentation and legal opinions concerning these complex financial instruments. The specific notes issued include those linked to the Russell 2000® Index, the Dow Jones Industrial Average®, and the Nasdaq-100 Index®, with various maturity dates ranging from November 2019 to September 2023. The inclusion of the legal opinions from Faegre Baker Daniels LLP signifies a formal step in the public offering process for these securities, ensuring compliance and providing a degree of assurance regarding their structure and legality.

Key Highlights

1Wells Fargo & Company issued three series of Medium-Term Notes, Series S, on September 10, 2018.
2These notes are classified as "Principal at Risk Securities," indicating potential loss of principal based on index performance.
3The underlying indices for these notes include the Russell 2000® Index, Dow Jones Industrial Average®, and Nasdaq-100 Index®.
4Maturity dates for the issued notes range from November 14, 2019, to September 11, 2023.
5The filing includes the forms of these "Principal at Risk Securities" as exhibits.
6Legal opinions from Faegre Baker Daniels LLP regarding the Notes and their consent are filed as exhibits.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Sep 11, 2018)

Summary

Key Highlights

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