Obbligazione JPMorgan Chase 7.5% ( US48126D6Z70 ) in USD

Emittente JPMorgan Chase
Prezzo di mercato refresh price now   100 USD  ⇌ 
Paese  Stati Uniti
Codice isin  US48126D6Z70 ( in USD )
Tasso d'interesse 7.5% per anno ( pagato 2 volte l'anno)
Scadenza 13/09/2028



Prospetto opuscolo dell'obbligazione JP Morgan US48126D6Z70 en USD 7.5%, scadenza 13/09/2028


Importo minimo 1 000 USD
Importo totale /
Cusip 48126D6Z7
Standard & Poor's ( S&P ) rating N/A
Moody's rating N/A
Coupon successivo 13/03/2026 ( In 33 giorni )
Descrizione dettagliata JPMorgan Chase & Co. è una delle più grandi istituzioni finanziarie al mondo, operante nel settore bancario d'investimento, gestione patrimoniale e servizi finanziari.

The Obbligazione issued by JPMorgan Chase ( United States ) , in USD, with the ISIN code US48126D6Z70, pays a coupon of 7.5% per year.
The coupons are paid 2 times per year and the Obbligazione maturity is 13/09/2028







http://www.sec.gov/Archives/edgar/data/19617/000089109213007849/e...
424B2 1 e55423_424b2.htm PRICING SUPPLEMENT NO. 1738
CALCULATION OF REGISTRATION FEE
Maximum Aggregate
Amount of
Title of Each Class of Securities Offered
Offering Price
Registration Fee
Notes
$2,561,000
$349.32

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September 2013
Pricing supplement No. 1738
Registration Statement No. 333-177923
Dated September 10, 2013
Filed pursuant to Rule 424(b)(2)
INTEREST RATE STRUCTURED INVESTMENTS
Floating Rate Notes due September 13, 2028
6-Month USD LIBOR and S&P 500® Index Range Accrual Notes
As further described below, subject to our redemption right, interest will accrue quarterly on the notes at a variable rate equal to 7.50% per annum for each day that (i) 6-Month USD LIBOR is greater than or
equal to 0.00% and less than or equal to 6.00% and (i ) the closing level of the S&P 500® Index is greater than or equal to the index reference level.
We, JPMorgan Chase & Co., have the right to redeem the notes on any quarterly redemption date beginning September 13, 2018. Al payments on the notes, including the repayment of principal, are subject to
the credit risk of JPMorgan Chase & Co.
SUMMARY TERMS
Issuer:
JPMorgan Chase & Co.
Aggregate principal amount:
$ 2,561,000. We may increase the aggregate principal amount prior to the original issue date but are not required to do so.
Stated principal amount:
$1,000 per note
Issue price:
$1,000 per note (see "Commissions and Issue Price" below)
Pricing date:
September 10, 2013
Original issue date:
September 13, 2013 (3 business days after the pricing date)
Interest accrual date:
September 13, 2013
Maturity date:
September 13, 2028, provided that if such day is not a business day, any payment at maturity will be made on the following business day unless the stated
maturity date is the last day of the calendar month, then the maturity date will be the immediately preceding business day. No adjustment will be made to any
interest payment because of a non-business day.
Interest:
Original issue date to but excluding the maturity date:
(x) 7.50% per annum times (y) N/ACT; where
"N" = the aggregate number of calendar days in the applicable interest payment period for which (i) the LIBOR reference rate on the corresponding accrual
determination date is within the LIBOR reference rate range and (i ) the index closing value on the corresponding accrual determination date is greater than or
equal to the index reference level; and
"ACT" = the total number of calendar days in the applicable interest payment period.
If on the accrual determination date corresponding to any calendar day the LIBOR reference rate is not within the LIBOR reference rate range or the index
closing value is less than the index reference level, interest will accrue at a rate of 0.00% per annum for that day.
Interest payment period:
Quarterly (the period beginning on and including the original issue date of the notes and ending on but excluding the first interest payment date and each
successive period beginning on and including an interest payment date and ending on but excluding the next succeeding interest payment date).
Interest payment dates:
Each March 13, June 13, September 13, and December 13 beginning December 13, 2013; provided that if any such day is not a business day, that interest
payment will be made on the following business day unless such scheduled interest payment date is the last day of the calendar month, then the interest payment
date will be the immediately preceding business day. No adjustment will be made to any interest payment because of a non-business day.
Day-count convention:
30/360
Redemption percentage:
With respect to a redemption date, if any, 100%
Redemption:
Beginning September 13, 2018, we have the right to redeem all of these notes on any quarterly redemption date and pay to you 100% of the stated principal
amount per note plus accrued and unpaid interest to but excluding the date of such redemption. If we decide to redeem the notes, we will give you notice at least 5
business days before the redemption date specified in the notice.
Redemption date:
Each interest payment date beginning on September 13, 2018
LIBOR reference rate:
6-month USD LIBOR. Please see "Additional Provisions" beginning on page 2 below.
LIBOR reference rate range:
Greater than or equal to 0.00% and less than or equal to 6.00%
LIBOR reference rate cutoff:
For any interest payment period, the LIBOR reference rate for any day from and including the seventh scheduled business day prior to the related interest
payment date shall be the LIBOR reference rate as in effect for the trading day immediately preceding such seventh scheduled business day. Please see
"Additional Provisions" beginning on page 2 below.
Index:
The S&P 500® Index. Please see "Additional Provisions" beginning on page 2 below.
Index closing value:
The daily closing value of the Index. Please see "Additional Provisions" beginning on page 2 below.
Index reference level:
1,240.
Index cutoff:
For any interest payment period, the index closing value for any day from and including the seventh scheduled business day prior to but excluding the related
interest payment date shall be the index closing value for the trading day immediately preceding such seventh scheduled business day. Please see "Additional
Provisions" beginning on page 2 below.
Specified currency:
U.S. dollars
Calculation agent:
J.P. Morgan Securities LLC ("JPMS")
Listing:
The notes will not be listed on any securities exchange.
Denominations:
$1,000 / $1,000
CUSIP / ISIN:
48126D6Z7/US48126D6Z70
Book-entry or certificated note:
Book-entry
Business day:
New York
Agent:
JPMS
Commissions and issue price:
Price to Public(1)
Fees and Commissions(2)
Proceeds to Issuer
Per Note
$1,000
$27.50
$972.50
Total
$2,561,000
$70,427.50
$2,490,572.50
(1)
The price to the public includes the estimated cost of hedging our obligations under the notes through one or more of our affiliates, which includes our affiliates' expected cost of providing such hedge as
well as the profit our affiliates expect to realize in consideration for assuming the risks inherent in providing such hedge. For additional related information, please see "Use of Proceeds and Hedging"
beginning on PS-28 of the accompanying product supplement no. MS-2-I.
(2)
JPMS, acting as agent for JPMorgan Chase & Co., received a commission and used $27.50 per $1,000 stated principal amount note of that commission to al ow sel ing concessions to Morgan Stanley Smith
Barney LLC ("MSSB"). See "Plan of Distribution (Conflicts of Interest)" beginning on page PS-41 of the accompanying product supplement no. MS-2-I.
The estimated value of the notes as determined by JPMS when the terms of the notes were set was $921.13 per $1,000 stated principal amount notes. See "Additional Information About the
Notes -- JPMS's Estimated Value of the Notes" in this document for additional information.
Investing in the notes involves a number of risks. See "Risk Factors" on page US-1 of the accompanying underlying supplement no. 1-I, "Risk Factors" on page PS-16 of the accompanying
product supplement no. MS-2-I and "Risk Factors" beginning on page 7 of this pricing supplement.
Neither the Securities and Exchange Commission (the "SEC") nor any state securities commission has approved or disapproved of the notes or passed upon the accuracy or the adequacy
of this pricing supplement or the accompanying underlying supplement, product supplement, prospectus supplement and prospectus. Any representation to the contrary is a criminal
offense.
The notes are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, nor are they obligations of, or guaranteed by, a
bank.
YOU SHOULD READ THIS PRICING SUPPLEMENT TOGETHER WITH THE RELATED UNDERLYING SUPPLEMENT NO. 1-I, PRODUCT SUPPLEMENT NO. MS-2-I, PROSPECTUS SUPPLEMENT AND PROSPECTUS, EACH OF WHICH CAN BE ACCESSED VIA THE
HYPERLINKS BELOW, BEFORE YOU DECIDE TO INVEST.
Underlying supplement no. 1-I dated November 14, 2011: http://sec.gov/Archives/edgar/data/19617/000089109211007615/e46154_424b2.pdf
Product supplement no. MS-2-I dated November 14, 2011: http://www.sec.gov/Archives/edgar/data/19617/000089109211007605/e46194_424b2.pdf
Prospectus supplement dated November 14, 2011: http://www.sec.gov/Archives/edgar/data/19617/000089109211007578/e46180_424b2.pdf
Prospectus dated November 14, 2011: http://www.sec.gov/Archives/edgar/data/19617/000089109211007568/e46179_424b2.pdf

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The Notes
The notes offered are senior unsecured obligations of JPMorgan Chase & Co. We describe the basic features of these notes in the sections of the
accompanying prospectus cal ed "Description of Debt Securities," the accompanying prospectus supplement cal ed "Description of Notes" and the
accompanying product supplement no. MS-2-I cal ed "Description of Notes," subject to and as modified by the provisions described above. Al payments on
the notes are subject to the credit risk of JPMorgan Chase & Co.
Additional Provisions
LIBOR Reference Rate
For each accrual determination date, the LIBOR reference rate refers to the London Interbank Offered Rate for deposits in U.S. dol ars with a Designated
Maturity of six months that appears on Reuters page "LIBOR01" under the heading "6Mo" (or any successor page) at approximately 11:00 a.m., London time,
on such accrual determination date, as determined by the calculation agent. If on such accrual determination date, 6-month USD LIBOR cannot be determined
by reference to Reuters page "LIBOR01" (or any successor page), then the calculation agent wil determine 6-month USD LIBOR in accordance with the
procedures set forth in the accompanying product supplement no. MS-2-I under "Description of Notes -- Interest -- The Underlying Rates and Levels --
LIBOR Reference Rate."
Index Closing Value
For each accrual determination date, the official closing level of the S&P 500® Index (the "Index") published fol owing the regular official weekday close of
trading for the S&P 500® Index on Bloomberg Professional® Service page "SPX Index HP" on such accrual determination date. If a market disruption event
exists with respect to the S&P 500® Index on any accrual determination date, the index closing value on the immediately preceding accrual determination date
for which no market disruption event occurs or is continuing wil be the index closing value for such disrupted accrual determination date (and wil also be the
index closing value for the original y scheduled accrual determination date). In certain circumstances, the index closing value wil be based on the alternative
calculation of the S&P 500® Index as described under "General Terms of Notes -- Discontinuation of an Index; Alteration of Method Calculation" in the
accompanying product supplement no. MS-2-I.
Accrual Determination Date
For each calendar day, the second trading day prior to such calendar day; provided that for the period commencing on the seventh scheduled business day
prior to but excluding each interest payment date, the accrual determination date will be the first trading day that immediately precedes such period. For
purposes of product supplement no. MS-2-I, an accrual determination date is a LIBOR determination date and an index determination date.
Trading Day
A day, as determined by the calculation agent, on which (a) trading is generally conducted on (i) the relevant exchanges for securities underlying the S&P 500®
Index or the relevant successor index, if applicable, and (ii) the exchanges on which futures or options contracts related to the S&P 500® Index or the relevant
successor index, if applicable, are traded, other than a day on which trading on such relevant exchange or exchange on which such futures or options contracts
are traded is scheduled to close prior to its regular weekday closing time, and (b) commercial banks and foreign exchange markets settle payments and are
open for general business (including dealings in foreign exchange and foreign currency deposits) in London.
Business Day
Any day other than a day on which banking institutions in the City of New York are authorized or required by law, regulation or executive order to close or a day
on which transactions in dol ars are not conducted.
September 2013
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Hypothetical Examples
The table below presents examples of the hypothetical interest rate that would accrue on the notes based on the total number of calendar days in an interest
payment period on which the LIBOR reference rate is within the LIBOR reference rate range and the index closing value is greater than or equal to the index
reference level. The table reflects that the interest payment period contains 90 calendar days and reflects an interest rate of 7.50% per annum.
The example below is for purposes of il ustration only and would provide different results if different assumptions were made. The actual quarterly interest rate
and payments wil depend on the actual index closing value and LIBOR reference rate on each day.
N
Hypothetical Interest Rate
0
0.0000%
10
0.8333%
20
1.6667%
25
2.0833%
35
2.9167%
50
4.1667%
75
6.2500%
90
7.5000%
Historical Information
LIBOR Reference Rate
The fol owing graph sets forth the weekly LIBOR reference rate for the period from January 4, 2008 to September 6, 2013. The LIBOR reference rate
on September 10, 2013 was 0.3874%. The historical performance of the LIBOR reference rate should not be taken as an indication of its future
performance. We cannot give you any assurance that the LIBOR reference rate wil be within the LIBOR reference rate range on any day of any
interest payment period. We obtained the information in the graph below, without independent verification, from Bloomberg Financial Markets, which
closely paral els but is not necessarily exactly the same as the Reuters Page price sources used to determine the LIBOR reference rate.
September 2013
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Historical period

Total number of days in historical period, beginning on January 4, 2008
1,436
Number of days on or after January 4, 2008 that the LIBOR reference rate was greater than or equal to 0.00% and less than or equal to
6.00%
1,436
Number of days on or after January 4, 2008 that the LIBOR reference rate was less than 0.00% or greater than 6.00%
0

The historical performance shown above is not indicative of future performance. The LIBOR reference rate may in the future be less than 0.00% or greater
than 6.00% for extended periods of time. You will not receive interest for any day that the LIBOR reference rate is less than 0.00% or greater than
6.00%.
Moreover, even if the LIBOR reference rate is greater than or equal to 0.00% and less than or equal to 6.00% on any day, if the index closing
value is less than the index reference level on that day, you will not receive any interest for that day.

September 2013
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Information about the Underlying Index
The S&P 500® Index.
The S&P 500® Index consists of 500 component stocks selected to provide a performance benchmark for the U.S. equity markets. For additional information
on the S&P 500® Index, see the information set forth under "Equity Index Descriptions -- The S&P 500® Index" in the accompanying underlying supplement
no. 1-I.

Historical Information
The fol owing table sets forth the published high and low index closing values, as wel as end-of-quarter index closing values, for each quarter in the period
from January 4, 2008 through September 10, 2013. The graph fol owing the table sets forth the weekly closing values of the index for the period from January
4, 2008 through September 6, 2013. The closing value of the index on September 10, 2013 was 1,683.99. The historical values of the S&P 500® index
should not be taken as an indication of future performance, and no assurance can be given as to the level of the index on any calendar day during the term of
the notes. The payment of dividends on the stocks that constitute the index are not reflected in its level and, therefore, have no effect on the calculation of the
payment of interest. We obtained the information in the table and graph below from Bloomberg Financial Markets, without independent verification.
S&P 500® Index
High
Low
Period End
2008



First Quarter
1,447.16
1,273.37
1,322.70
Second Quarter
1,426.63
1,278.38
1,280.00
Third Quarter
1,305.32
1,106.39
1,166.36
Fourth Quarter
1,161.06
752.44
903.25
2009



First Quarter
934.70
676.53
797.87
Second Quarter
946.21
811.08
919.32
Third Quarter
1,071.66
879.13
1,057.08
Fourth Quarter
1,127.78
1,025.21
1,115.10
2010



First Quarter
1,174.17
1,056.74
1,169.43
Second Quarter
1,217.28
1,030.71
1,030.71
Third Quarter
1,148.67
1,022.58
1,141.2
Fourth Quarter
1,259.78
1,137.03
1,257.64
2011



First Quarter
1,343.01
1,256.88
1,325.83
Second Quarter
1,363.61
1,265.42
1,320.64
Third Quarter
1,353.22
1,119.46
1,131.42
Fourth Quarter
1,285.09
1,099.23
1,257.6
2012



First Quarter
1,416.51
1,277.06
1,408.47
Second Quarter
1,419.04
1,278.04
1,362.16
Third Quarter
1,465.77
1,334.76
1,440.67
Fourth Quarter
1,461.4
1,353.33
1,426.19
2013



First Quarter
1,569.19
1,457.15
1,569.19
Second Quarter
1,669.16
1,541.61
1,606.28
Third Quarter (Through September 10, 2013)
1,709.67
1,614.08
1,683.99

September 2013
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Historical period

Total number of days in the historical period, beginning on January 4, 2008
1,431
Number of days on or after January 4, 2008 that the index was greater than or equal to 1,240
782
Number of days on or after January 4, 2008 that the index was less than 1,240
649

The historical performance shown above is not indicative of future performance. The index closing value may in the future be less than the index reference
level for extended periods of time. You will not receive interest for any day that the index closing value is less than the index reference level.
Moreover, even if the index closing value is greater than or equal to the index reference level on any day, if the LIBOR reference rate is less than
0.00% or greater than 6.00% on that day, you will not receive any interest for that day.
September 2013
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Risk Factors
The following is a non-exhaustive list of certain key risk factors for investors in the notes. For further discussion of these and other risks, you should
read the section entitled "Risk Factors" beginning on page US-1 of the accompanying underlying supplement no. 1-I and "Risk Factors" beginning on
page PS-16 of the accompanying product supplement no. MS-2-I.
§ The notes are not ordinary debt securities; the interest rate on the notes is not fixed but is variable. The rate of interest paid by us on the notes
for each interest payment period is not fixed, but wil vary depending on the daily fluctuations in the LIBOR reference rate and the index closing value.
Consequently, the return on the notes may be less than those otherwise payable on debt issued by us with similar maturities. Although the variable interest
rate on the notes is determined, in part, by reference to the LIBOR reference rate and the index closing value, the interest rate on the notes does not track
the LIBOR reference rate or the Index. You should consider, among other things, the overall annual percentage rate of interest to maturity as compared to
other equivalent investment alternatives.
§ The interest rate on the notes is limited to 7.50% per annum during any interest payment period. The interest rate wil be limited to 7.50% per
annum during any interest payment period. Interest during any interest payment period wil accrue at a rate per annum equal to the product of (1) 7.50%
per annum during any interest payment period and (2) the accrual determination dates divided by the number of days in such interest payment period. As a
result, the interest rate for any interest payment period wil never exceed 7.50% per annum.
§ The interest rate on the notes is based on 6-month USD LIBOR and the index closing value, which may result in an interest rate of zero.
Although the maximum rate is equal to 7.50% per annum, for every calendar day during any interest payment period that is not an accrual determination
date, the interest rate for that interest payment period wil be reduced. We cannot predict the factors that may result in interest not accruing on any accrual
determination date. The amount of interest you accrue on the notes in any interest payment period may decrease even if the applicable LIBOR reference
rate decreases or the index closing value increases. If no calendar day during any interest payment period is an accrual determination date, the interest
rate for such period would be zero. In that event, you wil not be compensated for any loss in value due to inflation and other factors relating to the value of
money over time during such period.
§ The notes are subject to the credit risk of JPMorgan Chase & Co., and any actual or anticipated changes to our credit ratings or credit
spreads may adversely affect the market value of the notes. The notes are subject to the credit risk of JPMorgan Chase & Co., and our credit ratings
and credit spreads may adversely affect the market value of the notes. Investors are dependent on JPMorgan Chase & Co.'s ability to pay all amounts due
on the notes, and therefore investors are subject to our credit risk and to changes in the market's view of our creditworthiness. Any decline in our credit
ratings or increase in the credit spreads charged by the market for taking our credit risk is likely to adversely affect the value of the notes. If we were to
default on our payment obligations, you may not receive any amounts owed to you under the notes and you could lose your entire investment.
§ Potential conflicts -- We and our affiliates play a variety of in connection with the issuance of the notes, including acting as calculation agent and hedging
our obligations under the notes. In performing these duties, the economic interests of the calculation agent and other affiliates of ours are potential y
adverse to your interests as an investor in the notes. It is possible that such hedging or trading activities could result in substantial returns for us or our
affiliates while the value of the notes declines. JPMorgan Chase Bank, National Association, an affiliate of the issuer, may be one of the banks polled by
the British Banking Association in their daily determination of the LIBOR reference rate. JPMorgan Chase Bank, National Association's participation in this
poll may affect the LIBOR reference rate. Please refer to "Risk Factors" in the accompanying product supplement for additional information about these
risks
§ The LIBOR reference rate and the index closing value used to determine whether any calendar day is an accrual determination date will not
be the LIBOR reference rate and the index closing value on such calendar day. The LIBOR reference rate and the index closing value used to
determine whether a calendar day is an accrual determination date are determined on the second trading day prior to such
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calendar day, except during the period immediately preceding an interest payment date. Because the LIBOR reference rate and the index closing value
during the period commencing on the seventh scheduled business day prior to but excluding each interest payment date will be the LIBOR reference rate
and index closing value for the first trading day that precedes such period, if the LIBOR reference rate on such first trading day is not within the LIBOR
reference rate range or the index closing value on such first trading day is not at or above the index reference level, you wil not receive any interest in
respect of the calendar days in the applicable period even if the LIBOR reference rate as actual y calculated on any of those days were to be within the
LIBOR reference rate range and the index closing value as actual y calculated on those days were to be at or above the index reference level.
§ Economic interests of the calculation agent and other affiliates of the issuer may be different from those of investors. We and our affiliates
play a variety of roles in connection with the issuance of the notes, including acting as calculation agent. In performing these duties, the economic
interests of the calculation agent and other affiliates of ours are potential y adverse to your interests as an investor in the notes. In addition, we are
currently one of the companies that make up the S&P 500® Index and one of the contributing banks that report interbank offered rates to the British
Bankers' Association in connection with the setting of USD LIBOR rates. We wil not have any obligation to consider your interests as a holder of
the notes in taking any action that might affect the value of the S&P 500® Index, the level of 6-month USD LIBOR and the value of the notes.
§ Early redemption risk. The issuer retains the option to redeem the notes on any quarterly redemption date, beginning on September 13, 2018. It is more
likely that the issuer wil redeem the notes prior to their stated maturity date to the extent that the interest payable on the notes is greater than the interest
that would be payable on other instruments of the issuer of a comparable maturity, terms and credit rating trading in the market. If the notes are redeemed
prior to their stated maturity date, you may have to re-invest the proceeds in a lower rate environment.
§ JPMS's estimated value of the notes is lower than the issue price (price to public) of the notes. JPMS's estimated value is only an estimate using
several factors. The issue price of the notes exceeds JPMS's estimated value because costs associated with sel ing, structuring and hedging the notes
are included in the issue price of the notes. These costs include the sel ing commissions, the projected profits, if any, that our affiliates expect to realize
for assuming risks inherent in hedging our obligations under the notes and the estimated cost of hedging our obligations under the notes. See "Additional
Information About the Notes -- JPMS's Estimated Value of the Notes" in this document.
§ JPMS's estimated value does not represent future values of the notes and may differ from others' estimates. JPMS's estimated value of the
notes is determined by reference to JPMS's internal pricing models. This estimated value is based on market conditions and other relevant factors existing
at the time of pricing and JPMS's assumptions about market parameters, which can include volatility, dividend rates, interest rates and other factors.
Different pricing models and assumptions could provide valuations for securities that are greater than or less than JPMS's estimated value. In addition,
market conditions and other relevant factors in the future may change, and any assumptions may prove to be incorrect. On future dates, the value of the
notes could change significantly based on, among other things, changes in market conditions, our creditworthiness, interest rate movements and other
relevant factors, which may impact the price, if any, at which JPMS would be wil ing to buy notes from you in secondary market transactions. See
"Additional Information About the Notes -- JPMS's Estimated Value of the Notes" in this document.
§ JPMS's estimated value is not determined by reference to credit spreads for our conventional fixed-rate debt. The internal funding rate used in
the determination of JPMS's estimated value generally represents a discount from the credit spreads for our conventional fixed-rate debt. The discount is
based on, among other things, our view of the funding value of the notes as wel as the higher issuance, operational and ongoing liability management
costs of the notes in comparison to those costs for our conventional fixed-rate debt. If JPMS were to use the interest rate implied by our conventional
fixed-rate credit spreads, we would expect the economic terms of the notes to be more favorable to you. In addition, JPMS's estimated value might be
lower if it were based on the interest rate implied by our conventional fixed-rate credit spreads. Consequently, our use of an internal funding rate would
have an adverse effect on the terms of the notes and any secondary market prices of the notes. See "Additional Information About the Notes -- JPMS's
Estimated Value of the Notes" in this document.
§ The value of the notes as published by JPMS (and which may be reflected on customer account statements) is higher than JPMS's
then-current estimated value of the notes for a limited time
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period. We general y expect that some of the costs included in the issue price of the notes wil be partial y paid back to you in connection with any
repurchases of your notes by JPMS in an amount that wil decline to zero over an initial predetermined period. These costs can include projected hedging
profits, if any, and, in some circumstances, estimated hedging costs and our secondary market credit spreads for structured debt issuances. See
"Additional Information About the Notes -- Secondary Market Prices of the Notes" in this document for additional information relating to this initial period.
Accordingly, the estimated value of your notes during this initial period may be lower than the value of the notes as published by JPMS (and which may be
shown on your customer account statements).
§ Secondary market prices of the notes will likely be lower than the issue price of the notes. Any secondary market prices of the notes will likely be
lower than the issue price of the notes because, among other things, secondary market prices take into account our secondary market credit spreads for
structured debt issuances and, also, because secondary market prices (a) exclude sel ing commissions and (b) may exclude projected hedging profits, if
any, and estimated hedging costs that are included in the issue price of the notes. As a result, the price, if any, at which JPMS will be willing to buy notes
from you in secondary market transactions, if at al , is likely to be lower than the issue price. Any sale by you prior to the maturity date could result in a
substantial loss to you. See the immediately fol owing risk factor for information about additional factors that will impact any secondary market prices of the
notes. The notes are not designed to be short-term trading instruments. Accordingly, you should be able and wil ing to hold your notes to maturity. See "--
Secondary trading may be limited" below.
§ Secondary market prices of the notes will be impacted by many economic and market factors. The secondary market price of the notes during
their term wil be impacted by a number of economic and market factors, which may either offset or magnify each other, aside from the sel ing
commissions, projected hedging profits, if any, estimated hedging costs and the level of the index and the LIBOR reference rate, including:
o
any actual or potential change in our creditworthiness or credit spreads,
o
customary bid-ask spreads for similarly sized trades,
o
secondary market credit spreads for structured debt issuances,
o
the actual and expected volatility of the index and the LIBOR reference rate,
o
the dividend rates on the equity securities included in the index,
o
interest and yield rates in the market,
o
time remaining until the notes mature, and
o
a variety of other economic, financial, political, regulatory and judicial events.
Additional y, independent pricing vendors and/or third party broker-dealers may publish a price for the notes, which may also be reflected on customer
account statements. This price may be different (higher or lower) than the price of the notes, if any, at which JPMS may be wil ing to purchase your notes in
the secondary market
§ These notes may be riskier than notes with a shorter term. By purchasing a note with a longer term, you are more exposed to fluctuations in interest
rates than if you purchased a note with a shorter term. Specifically, you may be negatively affected if certain interest rate scenarios occur. General y, if the
prevailing interest rate begins to rise, the market value of your notes may decline because the yield to maturity on the notes may be less than the interest
rate on a note issued at such time. For example, if the yield to maturity on the notes at such time was 7.50% per annum, but a debt security issued in the
then current market could yield an interest rate of 8.50% per annum, your note may be less valuable if you tried to sel your note in the secondary market.
§ 6-month USD LIBOR and the index closing value may be volatile. 6-month USD LIBOR is subject to volatility due to a variety of factors affecting
interest rates general y and the rates of U.S. Treasury securities specifically, including:
§ sentiment regarding underlying strength in the U.S. and global economies;
§ expectation regarding the level of price inflation;
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