<TABLE> <S> <C>

<ARTICLE>                  BD
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET OF PAULSON CAPITAL CORP. AND SUBSIDIARY AS OF
DECEMBER 31, 1997 AND THE RELATED CONSOLIDATED STATEMENTS OF OPERATIONS,
SHAREHOLDERS' EQUITY AND CASH FLOWS FOR THE TWELVE MONTHS IN THE PERIOD ENDED
DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.

</LEGEND>
<MULTIPLIER>                                                       1,000
       
<S>                                                                <C>
<PERIOD-TYPE>                                                      12-MOS
<FISCAL-YEAR-END>                                                  DEC-31-1997
<PERIOD-END>                                                       DEC-31-1997
<CASH>                                                                      73
<RECEIVABLES>                                                            5,155
<SECURITIES-RESALE>                                                          0
<SECURITIES-BORROWED>                                                        0
<INSTRUMENTS-OWNED>                                                     15,970
<PP&E>                                                                     203
<TOTAL-ASSETS>                                                          22,463
<SHORT-TERM>                                                               100
<PAYABLES>                                                               8,348
<REPOS-SOLD>                                                                 0
<SECURITIES-LOANED>                                                          0
<INSTRUMENTS-SOLD>                                                         331
<LONG-TERM>                                                                  0
<PREFERRED-MANDATORY>                                                        0
<PREFERRED>                                                                  0
<COMMON>                                                                   794
<OTHER-SE>                                                              12,989
<TOTAL-LIABILITY-AND-EQUITY>                                            22,463
<TRADING-REVENUE>                                                        1,196
<INTEREST-DIVIDENDS>                                                         7
<COMMISSIONS>                                                           12,729
<INVESTMENT-BANKING-REVENUES>                                            3,926
<FEE-REVENUE>                                                                0
<INTEREST-EXPENSE>                                                           6
<COMPENSATION>                                                          12,552
<INCOME-PRETAX>                                                          6,918
<INCOME-PRE-EXTRAORDINARY>                                               6,918
<EXTRAORDINARY>                                                              0
<CHANGES>                                                                    0
<NET-INCOME>                                                             4,354
<EPS-PRIMARY>                                                             1.10
<EPS-DILUTED>                                                             1.09
        

</TABLE>