Paulson Capital Corp. is a holding company whose only operating subsidiary is Paulson Investment Company, Inc. (PIC). PIC is a full-service brokerage firm engaged in the purchase and sale of securities from and to the public and for its own account and in investment banking activities. PIC is involved in the purchase and sale of most investment securities but is not involved in commodities or futures. Four broad categories of securities activities contribute to revenues of PIC: retail brokerage, corporate finance/investment banking, trading and market making (or wholesale). PIC also receives revenues from gains and losses in investment accounts, from underwriter warrants received in connection with its corporate finance activities, and from other sources.