UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 28, 2007

PAULSON CAPITAL CORP.

(Exact name of registrant as specified in its charter)

Commission File Number: 0-18188

Oregon		93-0589534
(State or other jurisdiction of incorporation		(I.R.S. Employer Identification No.)
or organization)

811 S.W. Naito Parkway, Portland, Oregon		97204
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 503-243-6000

Former name or former address if changed since last report: no change

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

PAULSON CAPITAL CORP.

FORM 8-K

INDEX

Item		Description

Item 8.01		Other Events

Item 9.01		Financial Statements and Exhibits

Signatures

Item 8.01 Other Events

In accordance with federal rules governing normal reporting obligations of broker-dealers, on February 28, 2007, 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 National Association of Securities Dealers. The report contains a statement of financial condition as of December 31, 2006. 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.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:	March 1, 2007	PAULSON CAPITAL CORP.

		By:	/s/Chester L. F. Paulson
		Chester L. F. Paulson
		President and Chief Executive Officer
		(Principal Executive Officer)