922811--3/30/2007--TRACK_DATA

related topics

{product, market, service}

{system, service, information}

{regulation, change, law}

{stock, price, operating}

{competitive, industry, competition}

{control, financial, internal}

{customer, product, revenue}

{stock, price, share}

{regulation, government, change}

{condition, economic, financial}

{financial, litigation, operation}

{loss, insurance, financial}

{operation, international, foreign}

{property, intellectual, protect}

{acquisition, growth, future}

{capital, credit, financial}

Risks Relating to Owning Our Stock Market volatility may cause our stock price and the value of your investment to decline. We cannot assure you that we will be profitable. Our officers, directors and largest stockholder have the ability to control all matters submitted to stockholders for approval and control the issuance of preferred stock. We may not pay dividends on our common stock. Risks Relating to the Nature of the Financial Services Business Many of our competitors have greater financial, technical, marketing and other resources. A decline in activity levels in the securities markets could lower demand for our services. Consolidation of financial services within and across industries could lower demand for our services. The continuing impact of cost-cutting pressures across the financial services industry could cause lower demand for our services. Servicing customers outside the United States involves special challenges that we may not be able to meet, which could negatively impact our financial results. If we fail to attract customers in a cost-effective manner, our profitability and growth may be impaired. We are subject to various forms of credit risk, and those risks could have a material adverse effect on our financial situation. Our risk management policies and procedures may not be effective and may leave us exposed to unidentified or unexpected risks. We may suffer losses if our reputation is harmed. Systems failures and delays could harm our business. Our networks and those of our third-party service providers may be vulnerable to security risks. Our inability to protect our intellectual property rights or our infringement of the intellectual property rights of others could adversely affect our business. We will need to introduce new products and services to remain competitive. We may make acquisitions, and we may be unable to successfully integrate those acquisitions with our business, impairing our financial performance. We are dependent on our clearing agent, Penson Financial Services, Inc., and any failure by them or difficulties in our relationship could materially harm our business. The loss of or change in our third-party vendors may adversely affect our business. Our exposure to possible litigation could adversely affect our business. Losses due to employee or customer fraud could have an adverse effect on our business. Risks Relating to Regulation of Our Business We operate in a highly regulated industry and compliance failures could adversely affect our business. Compliance with the Sarbanes-Oxley Act of 2002 will require substantial financial and management resources and may increase the time and costs. Changes in legislation or regulations may affect our ability to conduct our business or reduce our profitability. Failure to comply with net capital requirements could adversely affect our business. Procedures and requirements of the Patriot Act may expose us to significant costs or penalties.

Full 10-K form ▸

922811--3/30/2007--TRACK_DATA_CORP