What are "Principal at Risk Securities"?

Principal at Risk Securities are structured financial products where the return of the principal investment is not guaranteed. Depending on the performance of an underlying asset or index, investors may lose a portion or all of their initial investment. These are typically more complex than traditional bank deposits or bonds.

What indices are these notes linked to?

The notes are linked to the performance of specific baskets of major stock market indices. These include combinations of the Russell 2000® Index, the Dow Jones Industrial Average®, the Nasdaq-100 Index®, and the S&P 500® Index. The payout is specifically tied to the *lowest performing* index within each basket.

What is the purpose of filing the forms of the Notes and the legal opinion?

Filing the forms of the notes provides potential investors and regulators with the specific terms and conditions of the securities being offered. The legal opinion from Faegre Baker Daniels LLP confirms the legality and structure of the notes, offering an independent verification of their compliance with relevant regulations.

Does this filing impact Wells Fargo's overall financial health or stock price directly?

This specific 8-K filing relates to the documentation of a particular series of structured notes offered by Wells Fargo. While it shows ongoing business activity in specific product lines, it does not typically represent a material event that would directly impact the company's overall financial health or stock price in isolation. Investors should look at broader financial reports for a comprehensive view.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company (WFC) filed an 8-K on September 21, 2018, primarily to provide documentation for the issuance of new Medium-Term Notes, Series S. These notes are structured as "Principal at Risk Securities" and are linked to the performance of major stock market indices, specifically the Russell 2000®, the Dow Jones Industrial Average®, and the Nasdaq-100 Index®, or the S&P 500®, the Russell 2000®, and the Dow Jones Industrial Average®. The filings include the forms of these notes and a legal opinion from Faegre Baker Daniels LLP. For investors, this filing indicates Wells Fargo's continued activity in the structured products market. The "Principal at Risk" nature of these notes means that investors could lose a portion or all of their principal if the underlying indices do not perform favorably. The specific terms and risks associated with each note series are detailed within the filed exhibits and are crucial for potential investors to understand before considering an investment.

Key Highlights

1Wells Fargo issued new Medium-Term Notes, Series S, on September 20, 2018.
2These notes are classified as "Principal at Risk Securities," implying potential loss of principal.
3The performance of the notes is linked to the lowest performing of specific stock market indices (e.g., Russell 2000®, Dow Jones Industrial Average®, Nasdaq-100®, S&P 500®).
4The maturity date for these notes is September 21, 2023.
5The filing includes the forms of the notes as exhibits.
6A legal opinion from Faegre Baker Daniels LLP regarding the notes is also filed.
7This filing is related to a prior Registration Statement on Form S-3.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Sep 21, 2018)

Summary

Key Highlights

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