1001871--6/29/2007--INVESTORS_CAPITAL_HOLDINGS

related topics

{financial, litigation, operation}

{stock, price, operating}

{regulation, government, change}

{loan, real, estate}

{regulation, change, law}

{system, service, information}

{investment, property, distribution}

{personnel, key, retain}

{customer, product, revenue}

{control, financial, internal}

{operation, international, foreign}

The price of our common stock may continue to be volatile. Aspects of our business are volatile and affected by factors beyond our control. Any market decline could adversely affect our revenues and earnings Assets under management, which impact revenue, may be subject to significant fluctuations. We compete in our investment advisory operations based upon investment performance. As a public company, we are subject to complex legal and accounting requirements that require us to incur substantial expense and expose us to risk of non-compliance. As a provider of financial services, we are subject to substantial governmental regulation. Any failure to maintain adequate internal controls could result in regulatory sanctions that could result in substantial fines and restrictions on our ability to make money. Any failure by our independent investment professionals to comply with regulatory requirements may cause us to incur losses or suffer substantial harm to our business and operations. The financial services industry is subject to an increasing risk of legal proceedings. Actual or alleged fraud and misconduct by investment professionals and employees has resulted in, and exposes us to an ongoing potential for, litigation and regulatory sanctions that could substantially harm our business and results of operations. We are routinely involved in legal proceedings that can burden our resources and pose an ongoing risk of adverse dispositions that could negatively impact our earnings and profits. Consumer fraud could harm our earnings and profits by requiring us to expend time and money and exposing us to financial loss and the potential for arbitration or other legal proceedings. Our operations and infrastructure, and those of service providers upon which we rely, may malfunction or fail. Any change in our clearing firm could result in our inability to process transactions in a timely manner which could adversely affect our business operations and profits. Management s ownership of our common stock assures their control of corporation actions requiring a shareholder vote. Any loss of our senior management could adversely affect our business and financial condition through the loss of significant business relationships that may not be easily recreated. Any loss of key personnel could adversely affect our business.

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1001871--6/29/2007--INVESTORS_CAPITAL_HOLDINGS_LTD