Item 8.01 Other Events

In accordance with federal rules governing normal reporting obligations of broker-dealers, on February 27, 2009, Paulson Investment Company, Inc., a subsidiary of Paulson Capital Corp., submitted an Annual Audited Report Form X-17A-5 to the Securities and Exchange Commission and Financial Industry Regulatory Authority (FINRA). The report contains a statement of financial condition as of December 31, 2008. A copy of this financial information is attached as exhibit 99.1

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibit is attached hereto and this list is intended to constitute the exhibit index:

99.1 Annual Audited Report Form X-17A-5.

---