SIEB Siebert Financial Corp.

Risks

• Securities market volatility and other securities industry risk could adversely affect our business.
• Lower price levels in the securities markets may reduce our profitability.
• There is intense competition in the brokerage industry.
• Failure to protect client data or prevent breaches of our information systems could expose us to liability or reputational damage.
• We may be exposed to damage to our business or our reputation by cybersecurity breaches.
• Our advisory services subject us to additional risks.
• We are subject to extensive government regulation.
• Legislation has and may continue to result in changes to rules and regulations applicable to our business, which may negatively impact our business and financial results.
• We are subject to net capital requirements.
• Our customers may fail to pay us.
• An increase in volume on our systems or other events could cause them to malfunction.
• We rely on information processing and communications systems to process and record our transactions.
• Rapid market or technological changes may render our technology obsolete or decrease the attractiveness of our products and services to our clients.
• We depend on our ability to attract and retain key personnel.
• We may be unable to realize the anticipated benefits of our cost cutting efforts or it may take longer than anticipated for us to realize any benefits from increased cost efficiencies or economies of scale, if at all.
• Our principal shareholder has the ability to control key decisions submitted to a vote of our shareholders.
• There may be no public market for our Common Stock.
• Our future ability to pay dividends to holders of our Common Stock is subject to the discretion of our Board of Directors and will be limited by our ability to generate sufficient earnings and cash flows.
• Potential strategic acquisitions and other business growth could increase costs and regulatory and integration risks.