Risk Factors Update Summary

• The SEC adopted Regulation SE under the Exchange Act, requiring entities to register as SBSEFs.
• Management has discretion over sales of Class A common stock, potentially impacting stock price.
• Added new business initiatives, strategic alliances, acquisitions, mergers, investments, dispositions, joint ventures, and transformational transactions.
• Fail to maintain required capital may lead to suspension of brokerage operations during the period.
• Increased the number of brokers, salespeople, managers, and technology professionals from 985 to 104.
• Increasing focus on ESG practices and disclosures may impact customer relationships and financial performance.
• Revenue per front-office employee increased by 11.4% to approximately $958,000 for 2023.
• The company faces regulatory and legal compliance risks due to market consolidation and increased concentration.
• Operations are global, exposing the company to FX risks, impacting financial results significantly.
• Consolidation among competitors could result in increased resources and offerings for competitors.
• Proceeds from stock offerings may be used to repurchase shares, affecting availability for other purposes.
• Entities defined as SBSEFs must register with the SEC within 180 days of the effective date.
• Employee errors could lead to financial losses, legal liability, and reputational harm.
• Repurchased 4 million shares of Class A common stock at a weighted-average price of $93.
• Introduced ongoing scrutiny and changing expectations related to corporate responsibility or ESG practices.
• Increased competition from exchanges and concentration among competitors may lead to pricing pressure.
• The company may face financial consequences due to interest rate changes, with a debt of $1,049 million in 2022 and $1,183 million in 2023.
• The Company increased its front-office revenue-generating headcount by 6.0% to 2,104 employees.
• The SEC adopted final rules regarding central clearing of certain secondary market transactions.
• The company's business concentration in the U.K. and the U.S. poses risks from regulatory changes and economic downturns.
• Redeemed 1.2 million FPUs at a weighted-average price of $11 per unit.
• The Company invested in technology and new products to drive business growth and improve margins.
• The Company had net assets of $734.1 million for 2023, compared to $666.0 million in 2022.
• Simplifying corporate structure may improve stockholder value by reducing administrative costs and increasing efficiency.
• Cantor's control over management could delay or prevent a change of control, creating potential conflicts of interest.
• Potential conflicts of interest with Cantor may arise in various areas, impacting business operations.
• Issuance of shares under CEO Program and DRIP may affect prevailing market prices for stock.