18 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2000 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______________ TO ____________________ INSTITUTIONAL EQUITY HOLDINGS, INC. (FORMERLY EUROMED, INC.) (Exact name of registrant as specified in its charter) COMMISSION FILE NUMBER 0-27720 NEVADA 88-0317700 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 5910 North Central Expressway, Suite 1480 DALLAS, TX 75206 (Address of principal executive offices) (Zip Code)

(214) 237-3223 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ------------- 3,900,245 shares of Common Stock, par value $.01 per share, were outstanding at October 27, 2000 FORM 10-QSB

~~For~~INDEX ~~the~~PAGE ~~Three~~NO. ~~Months~~PART ~~Ended~~I. ~~For~~FINANCIAL ~~the~~INFORMATION ~~Six~~ITEM ~~Months~~1. ~~Ended~~FINANCIAL ~~June~~STATEMENTS ~~30,~~(UNAUDITED): ~~June~~Consolidated ~~30,~~Balance ~~----------------------------------------~~Sheets ~~2000 1999 2000 1999~~ -~~--------------~~ ~~------------~~September ~~--------------- ---- Revenues Commissions $ 738~~30,~~936~~ $2000 ~~2,090,666 $ 3,179,288 $ 3,616,669 Gain~~ (~~loss~~unaudited) ~~on firm securities accounts (907,614) 416,534 (675,256) 655,972 Underwriting~~ and ~~syndicate~~December ~~income 186~~31,~~567~~ ~~121,506~~1999 ~~935,616~~3 ~~200,010~~Consolidated ~~Other~~Statements ~~income~~of -Operations - ~~97,893~~Three -months ~~Interest income 34,748 414 45,891 414 ------------- ------ ------------- ------- Total Revenue 52,637 2,629,120 3,583,432 4,473,065 Costs~~ and ~~expenses~~nine ~~Commissions~~months ~~paid~~ended toSeptember ~~other broker-dealers 127~~30,~~426~~ ~~1,040,683~~2000 ~~387,138 1,446,904 Employee compensation 1,377,563 954,524 4,013,180 2,041,744 General~~ and ~~administrative expenses 1,018,763 760,527 1,751,255 1,291,317 Interest expense 46,365 40,791 119,654 632,898 ------------ ------------ ----------- ------------~~ 1999(~~Loss~~unaudited) ~~From~~4 ~~Continuing~~Consolidated ~~Operations~~Statements ~~Before~~of ~~Preferred~~Cash ~~Stock~~Flows ~~Dividend (2,517,480) (167,405) (2,687,795) (939,798) Preferred Stock Dividend (58,570) (5,229) (113,570) (5,229) Federal income tax expense~~ - -Nine ~~-----~~months ~~--------~~ended ~~---~~September ~~------ Net (Loss) From Continuing Operations (2~~30,~~576,050)~~ ~~(172,634)~~2000 ~~(2,801,365)~~and 1999(~~945,027~~unaudited) ~~Discontinued~~6 ~~operations~~Notes ~~Operating~~to ~~(loss)~~Financial -Statements -8 -ITEM ~~- Gain (loss) on sale - - - 15,047 ------- -------------- ------- ------------ Net (Loss) $(~~2~~,576,050)~~. $MANAGEMENT'S ~~(172,634)~~DISCUSSION ~~$(2,801,365)~~AND $ANALYSIS ~~(929,980)~~OF ~~===========~~FINANCIAL ~~===========~~CONDITION ~~===========~~AND ~~===========~~RESULTS ~~Net~~OF ~~(Loss)~~OPERATIONS ~~per~~11 ~~share~~PART ~~Continuing operations $ (1~~II.~~08)~~ $OTHER ~~(.07)~~INFORMATION $ITEM (13.~~19)~~ $CHANGES ~~(.37)~~IN ~~Discontinued~~SECURITIES ~~operations~~AND ~~Gain~~USE onOF ~~sale~~PROCEEDS of14 ~~discontinued~~ITEM ~~operations - - - - --------------------- ------ ---------------- - $ (1~~4.~~08)~~ $OTHER ~~(.07)~~INFORMATION $14 ~~(1.19)~~ITEM ~~$ (~~5.~~37)~~ ~~=============~~EXHIBITS ~~=============~~AND ~~=============~~REPORTS ~~=============~~ON ~~Pro~~FORM ~~forma~~8-K ~~weighted~~14 ~~average number of shares of common stock outstanding 2,382,000 2,542,000 2,362,000 2,542,000 ========== =========== ============= ===========~~SIGNATURES

PART 1 - FINANCIAL INFORMATION INSTITUTIONAL EQUITY HOLDINGS, INC. (FORMERLY EUROMED, INC.)

~~Six~~CONSOLIDATED ~~Months~~BALANCE ~~Ended~~SHEETS ~~June~~ASSETS September 30, ~~----------------------------------~~December 31, 2000 1999 --------------- -------------- ~~Cash~~(Unaudited) ~~Flow~~Current ~~from~~Assets ~~Operating~~Cash ~~Activities Net (loss)~~ $ (272,~~801,365)~~445 $~~(929~~ 315,~~980)~~904 ~~Adjustment~~Trading toSecurities, ~~reconcile~~at ~~net~~market ~~income~~1,833,022 ~~(loss)~~548,736 toReceivables ~~net~~Commissions ~~cash~~68,173 ~~from~~516,762 ~~operating~~Good ~~activities~~Faith ~~Depreciation~~Deposits 43423,~~789~~379 9150,000 ~~Change in restricted investment loan 218~~Other,~~616~~ -net ~~Loss on sale~~ of ~~assets~~allowance ~~25,601~~for -doubtful ~~Issuance~~accounts of ~~stock~~$225,000 ~~warrants~~and ~~- 575~~$25,~~547~~000 ~~Changes~~ in ~~assets~~2000 and ~~liabilities Investments 35~~1999,~~364~~ ~~(688,434)~~respectively ~~Receivables 142~~251,~~239~~831 ~~301~~56,~~590~~623 Prepaid ~~expenses~~Expenses ~~244~~21,~~568~~273 27301,~~629~~413 ~~Other assets 209,378 (34,570) Cash overdraft (24,518)~~ - ~~Due to brokers 244,023 (85,167) Securities sold, not yet purchased (18,494) 40,753 Accounts payable and accrued liabilities 432,481 (58,215)~~ ------------ ------------ ~~Net~~Total ~~Cash~~Current ~~Flow~~Assets ~~(Used)~~2,670,123 ~~By Operating Activities (~~1,~~248~~889,~~318)~~438 ~~(841,847)~~Furniture ~~-----------~~and ~~--------- Cash Flow from Investing Activities~~ Equipment ~~purchases (103~~,~~402)~~ ~~(21,297)~~net ~~Proceeds~~of ~~from~~accumulated ~~sale~~depreciation of ~~assets 73~~$382,~~100~~606 -and ~~------------~~$333,543, ~~----~~respectively ~~Net~~377,339 ~~Cash~~382,409 ~~Flow~~Restricted ~~(Used) By Investing Activities (30~~Investment,~~302)~~ ~~(21,297)~~at ~~------------~~market -~~-------~~ ~~Cash Flow from Financing Activities Sale of restricted investment~~ 1,304,043 ~~- Notes payable payments (527~~Goodwill,~~170)~~ -net ~~Proceeds~~of ~~from~~accumulated ~~loans~~amortization ~~100,000 500,770 Repayment~~ of ~~subordinated loans (50~~$4,~~000)~~834 -in ~~Sale~~2000 ~~of common stock 70~~1,~~000~~155,501 - ~~Sale~~Other ofAssets ~~preferred tock 75~~109,~~000~~ 380 259,~~000~~185 ------------- -------- ~~Net Cash Flow Provided By Financing Activities 971,873 880,770~~ ----~~---------~~ ~~---------~~Total ~~Net~~Assets ~~Increase~~$ ~~(Decrease) In Cash (306~~4,~~747)~~312,343 17$3,~~626~~835,075 ~~(Continued)~~============ ============

INSTITUTIONAL EQUITY HOLDINGS, INC. (FORMERLY EUROMED, INC.) CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

~~Percentage~~September ~~Percentage~~30, ofDecember ~~Total~~31, ~~Expenses~~2000 ~~Increase~~1999 --------------- ------------- (~~Decrease~~Unaudited) ~~Three~~Current ~~Months~~Liabilities ~~Ended~~Cash ~~June~~Overdraft 30$ - $ 31,649 In10% ~~Expenses~~Convertible Debenture 650,000 - Loans Payable 200,000 527,170 Liability for Borrowed Stock 1,081,850 - Due to Broker 95,282 96,594 Securities Sold, not yet purchased - 25,034 Accounts Payable and Accrued Liabilities 1,652,574 1,106,333 ------------ ------------ Total Current Liabilities 3,679,706 1,786,780 Loan Subordinated to Claims of General Creditors -- 150,000 Restricted Investment Loan 1,668,063 1,304,043 Due to Related Parties 370,000 245,000 ------------ ------------ ~~2000~~Total ~~1999~~Liabilities ~~2000~~5,717,769 3,485,823 ------------ ------------ ~~Employee~~Stockholders' ~~Compensation~~Equity ~~54%~~(Deficit) 34Undesignated Preferred Stock, par value $.01 per share; 3,190,000 shares authorized, none outstanding - - 10% 44Designated Series A Preferred Stock, par value $.01 per share; 1,060,000 shares authorized, issued and outstanding 10,600 10,600 10% ~~Commissions~~Designated ~~Paid~~Series toB ~~Other~~Preferred ~~Broker~~Stock, par value $.01 per share; 750,000 shares authorized; 75,000 and 37,500 shares issued and outstanding in 2000 and 1999, respectively 750 375 Common Stock, par value $.01 per share; 20,000,000 shares authorized; 3,923,245 and 2,312,000 issued and outstanding, respectively 39,232 23,120 Additional paid-~~Dealers~~in capital 5,312,313 373,778,234 Retained (88deficit)% (6,636,071) (3,330,827) ------------ ---------- ~~Total~~(1,273,176) ~~Compensation~~481,502 ~~Expense~~Less 59Treasury 71Shares, at cost (25132,250)% ~~General~~(132,250) ~~And~~------------ ~~Administrative~~------------ ~~Expenses~~Total 39Shareholders' 27Equity ~~34%~~(Deficit) ~~Interest~~(1,405,426) ~~Expense~~349,252 ~~2 2 14%~~ ------------ ------------ Total ~~Expenses~~Liabilities ~~100%~~and ~~100%~~Shareholders' Equity (8Deficit)% $ 4,312,343 $3,835,075 ============ ============

INSTITUTIONAL EQUITY HOLDINGS, INC. (FORMERLY EUROMED, INC.) CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

~~Percentage~~Three ~~Percentage~~Months ofEnded ~~Total~~September ~~Expenses~~30, ~~Increase~~Nine ~~(Decrease) Six~~ Months Ended ~~June~~September 30, ~~In Expenses~~ -------------------------------- ------------------------------- 2000 1999 2000 1999 ----------------- -------------- ~~Employee~~------------ ~~Compensation~~------------ ~~64%~~Revenues ~~38%~~Commissions ~~96%~~$ ~~Commissions~~124,661 ~~Paid~~$ to1,202,633 ~~Other~~$3,303,949 ~~Broker-Dealers~~$ 64,819,302 27Gain (73loss)% on firm securities accounts 499,236 (151,949) (36,215) 504,023 Underwriting and syndicate income 469,662 577,666 1,451,378 777,676 Other income 11,249 - 63,041 - Interest income 5,205 2,078 51,096 2,492 ------------ ------------- ------------- ------------- Total ~~Compensation~~Revenue ~~Expense~~1,110,013 701,630,428 654,833,249 ~~26%~~6,103,493 Costs and Expenses Commissions paid to other broker- dealers 35,226 1,121,953 418,879 2,568,857 Employee compensation 439,321 175,486 4,452,501 2,217,230 General ~~And~~and ~~Administrative~~administrative ~~Expenses~~expenses 281,027,661 241,460,876 ~~36%~~2,922,205 2,740,912 Interest ~~Expense~~expense 54,934 56,845 174,588 689,743 ------------ ------------- ------------- ------------- (Loss) From Continuing Operations Before Preferred Stock Dividend (447,129) (1,184,732) (3,134,924) (2,113,249) 11Preferred stock dividend (8156,750)% (5,229) (170,320) (5,229) Federal income tax expense - - - - ------------ ~~Total~~------------- ~~Expenses~~------------- ~~100%~~------------- ~~100%~~Net (Loss) From Continuing Operations (503,879) (1,189,961) (3,305,244) (2,118,478) Discontinued operations Operating (loss) - - - - Minority interest in operating (loss) of subsidiary - - - (16%,510) Gain on sale of discontinued operations - - - 15,047 ------------ ------------- ------------- ------------- Net (Loss) $ (503,879) $(1,189,961) $ (3,305,244) $(2,119,941) ============ =========== ~~Total~~============= ~~Expenses~~===========- asNet a(Loss) ~~Per~~per share Continuing operations $ (.16) $ (.47) $ (1.24) $ (.83) Discontinued operations - ~~Centage~~- - - Gain on sale of ~~Revenues~~discontinued ~~175%~~operations ~~121%~~- - - - ------------ ------------- ------------- ------------- $ (.16) $ (.47) $ (1.24) $ (.83) ============ ============= ============ ============= Pro forma weighted average number of shares of common stock outstanding 3,199,220 2,542,000 2,674,088 2,542,000 ============ ============= ============= =============

INSTITUTIONAL EQUITY HOLDINGS, INC. (FORMERLY EUROMED, INC.) CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

INSTITUTIONAL EQUITY HOLDINGS, INC. (FORMERLY EUROMED, INC.) CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (CONTINUED)

INSTITUTIONAL EQUITY HOLDINGS, INC. (FORMERLY EUROMED, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2000 NOTE 1: BUSINESS Swiss Nassau Corporation was incorporated on May 17, 1994 in the state of Nevada, United States of America, with authorized and issued share capital of 1,000 shares of common stock with no par value (the "common stock") and on June 15, 1994, all authorized shares of Swiss Nassau Corporation were issued. On October 20, 1995, Swiss Nassau Corporation changed its name into EuroMed, Inc. and increased its authorized shares to 20,000,000 shares of Common Stock with a new par value of $0.01 per share and 5,000,000 preferred shares with a par value of $0.01 per share. On October 20, 1995, EuroMed, Inc. effected a 150 for 1 stock split of its Common Stock. On April 23, 1999, EuroMed, Inc. changed its name to Institutional Equity Holdings, Inc. (the "Company" or "IEH"). In November 1995, the Company began acquiring pharmaceutical companies operating exclusively in Europe. The Company completed the acquisitions using the net proceeds from the sale of 1,150,000 shares of its common stock (issue price was $6.50 per share) in March 1996, and the issuance of 2,700,000 shares of its common stock. Subsequent to the acquisitions, laws relating to the pricing of pharmaceuticals in Europe were changed and as a result the operations of the pharmaceutical companies owned by the Company were severely impacted, resulting in significant operating losses. The Company realized approximately $1,146,000 in cash and cancelled 2,700,000 shares of its common stock upon sale of its European subsidiaries in 1997. The Company had no business activities in the calendar year of 1998, except that on November 6, 1998, the Company's Board of Directors approved and executed the "Agreement and Plan of Reorganization" by and among the Company, Institutional Equity Corporation ("IEC", a wholly owned subsidiary of the Company and formerly known as Redstone Acquisition Corp.) and Redstone Securities, Inc. ("Redstone"), a licensed broker and dealer of securities. Effective February 16, 1999, Redstone was merged into the newly organized subsidiary IEC. The Company issued 600,000 shares of its Common Stock to the three principals of Redstone, Thomas Laundrie, Gary Prucell, and Richard Belz (collectively referred to as the "Redstone Shareholders") and was obligated to issue an additional 500,000 shares (the "Restricted Shares") upon the market price of the Company's Common Stock reaching certain price levels or IEC reporting certain levels of net income. Notwithstanding the price levels of the Common Stock or net income performance levels, the Restricted Shares fully vest on February 16, 2002. Redstone has been a registered broker dealer since 1988. The Redstone Shareholders agreed to terminate their relationship with the Company in February 2000 subject to certain compensation payments, to forego the collections of the Company's subordinated notes due the Redstone Shareholders, to assume an investment in a certain security at its book value and to modify the number of shares of the Company's common stock from 1,100,000 to 500,000 shares of fully vested common stock. The Company has a right to repurchase these shares of its common stock at a price of $2.00 per share as follows: Number of Redemption Shares Period 100,000 Calendar year 2000 100,000 Calendar year 2001 300,000 On or before February 16, 2002

(Continued) INSTITUTIONAL EQUITY HOLDINGS, INC. (FORMERLY EUROMED, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2000 NOTE 1: BUSINESS (CONTINUED) The termination of the relationship with the Redstone Shareholders is reflected in the consolidated financial statements for the year ended December 31, 1999. On August 18, 2000, IEH acquired all of the members' ownership interests in First Atlanta Securities, L.L.C.("FAS"), a Georgia limited liability company, in exchange for 1,300,000 shares of IEH's $.01 par value, common stock. FAS is a full service brokerage firm, located in Atlanta, Georgia. The acquisition of FAS by IEH will be accounted for as a purchase, and the purchase transaction is set forth below: First Atlanta - Liabilities Assumed $ 284,807 Assets Purchased (175,449) ------------- Net Liabilities Assumed 109,358 IEH's Acquisition Costs 35,287 1,300,000 Shares of IEH's $.01 Par Value Common Stock at $.7813 Per Share 1,015,690 ------------- Goodwill Recognized $ 1,160,335 =============

The goodwill will be amortized over a twenty (20) year period. IEH is a holding company whose operating subsidiaries are IEC and FAS, who are full service brokerage firms engaged in the purchase and sale of securities from and to the public and for its own account and investment banking activities. The Company operates in one industry segment, the financial services industry. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 regulations S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included. The financial data at December 31, 1999 is derived from audited financial statements, which are included in the Company's Form 10-KSB and should be read in conjunction with the unaudited financial statements and notes thereto. Interim results are not necessarily indicative of results for the full year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. INSTITUTIONAL EQUITY HOLDINGS, INC. (FORMERLY EUROMED, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2000 NOTE 3: NET LOSS PER COMMON SHARE Basic (loss) per common share has been calculated using the weighted average number of shares of common stock outstanding during the periods. Diluted (loss) per common share is not disclosed because the effect of the exercise of the common stock warrants and options would be anti-dilutive. NOTE 4: NET CAPITAL REQUIREMENTS The NASD's net capital rule requires that broker/dealers maintain a designated minimum level of financial capital. The net capital rule places limits on certain of the Company's operations such as underwriting activities, market-making and other principal trading activities. If the Company falls below the minimum net capital required, the Company could be forced to suspend activities until additional capital is obtained. On June 26, 2000, the Company notified the NASD of its violation of the net capital requirements. The stated basis for this action was the failure by the Company to comply with certain NASD rules regarding the net capital requirements of a $100,000 for a broker dealer. In response, the Company re-capitalized its position, and the Company notified the NASD that it was in compliance with the NASD net capital requirements as of August 11, 2000. ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 1999 Revenues for the three months ended September 30, 2000, declined 32% to $1,110,013 compared to $1,630,428 for the three months ended September 30, 1999. On Monday June 26, 2000, the Company notified the NASD that it did not meet the minimum net capital requirement of a broker dealer. At that date the Company voluntarily ceased its brokerage operations, except for executing sale orders for its customers. The severe reduction in brokerage commissions (89% in the three month period ended September 30, 2000, as compared to the same three month period in 1999) was attributable to the volatility of the stock market, the closing of three offices in the three month period ended September 30, 2000 and the temporary ceasing of brokerage operations on June 26, 2000. The Company realized a $499,236 gain on security trading in the three months ended September 30, 2000 compared to a $151,949 loss in the three months ended September 30, 1999, primarily due to the decline of approximately $10 per share on 53,662 shares of borrowed stock. Expenses for the three months ended September 30, 2000, declined 45% to $1,557,142 compared to $2,815,160 for the three months ended September 30, 1999. The following summarizes the changes in expenses:

Overall expenses decreased 45% in 2000, as compared to 1999. The most significant decrease in expenses were the 63% decrease in compensation expense for the three months ended September 30, 2000, compared to the three months ended September 30, 1999. These expenses are directly related to commission revenue and underwriting and syndicate income, which reflected a 67% decline for the three months ended September 30, 2000. General and administrative expenses decreased due to a reduction in the number of active offices and the firm was unable to trade securities from June 26, 2000, to August 11, 2000. For the three months ended September 30, 2000, the Company reported a net loss of $503,879 compared to a loss of $1,189,961 for the three months ended September 30, 1999. The decrease in the loss was the result of the reduction in revenues by 32% offset by a 45% decline in expenses for the three months ended September 30, 2000 as compared to the three months ended September 30, 1999. NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 1999 Revenues for the nine months ended September 30, 2000, decreased 21% to $4,833,249 compared to $6,103,493 for the nine months ended September 30, 1999. On June 26, 2000, the Company notified the NASD that it did not meet the minimum net capital requirement of a broker dealer. At that date the Company voluntarily ceased its brokerage operations, except for executing sale orders for its customers. The reduction in brokerage commissions was attributable to the closing of three offices in the period ended September 30, 2000, and the temporary ceasing of brokerage operations from June 26, 2000, until August 11, 2000. The Company realized a $36,215 loss on security trading in the nine months ended September 30, 2000 compared to a $504,023 gain in the nine months ended September 30, 1999, primarily due to losses on stocks initially taken public by the Company and which were being held in its investment portfolio. Expenses for the nine months ended September 30, 2000, decreased 3% to $7,968,173 compared to $8,216,742 for the nine months ended September 30, 1999. The following summarizes the changes in expenses:

Overall expenses decreased 3% in 2000, as compared to 1999. General and administrative expenses increased 6% due to increased office rent on newly leased office space and an increase in the number of offices as compared to 1999 and an increase in professional fees. In March 1999, the Company entered into an agreement with an individual for delivery to the Company of a stock certificate representing 66,250 shares of common stock of Westower Corporation (which has subsequently converted into 119,912 shares of Spectrasite Holdings, Inc.). The agreement included a provision that the individual was to receive compensation equal to five percent (5%) of the average daily closing sales price of the common stock and warrants to purchase 414,062 shares of the Company's common stock at an exercise price of $2.00 per share (estimated fair value of the warrants at date of issue was ($571,406). The $571,406 of compensation to the individual was included in interest expense for the nine months ended September 30, 1999. For the nine months ended September 30, 2000, the Company reported a net loss of $3,305,244 compared to a loss of $2,119,941 for the nine months ended September 30, 1999. The increase in the loss is attributable to the 21% decline in revenues in 2000 and, only a the 3% decrease in operating expenses in 2000. LIQUIDITY AND CAPITAL RESOURCES Cash used in operations was $598,387 for the nine months ended September 30, 2000, compared with cash used in operations of $2,240,316 for the nine months ended September 30, 1999. To finance the operating losses, the Company sold 53,000 shares of Spectrasite Holdings, Inc.'s common stock for an aggregate value of approximately $1,092,000. The proceeds from the sale of these shares were used to repay a $407,170 loan from a brokerage firm and to finance current operations. The shares of Spectrasite Holdings, Inc. are owned by an individual and were loaned to the Company. The Company must return these shares to the individual; therefore, the Company will be required to purchase 53,000 shares of Spectrasite Holdings, Inc. in the public market. The trading price of these shares has ranged from a high of $28.75 (June 30, 2000) to a low of $11.06 (January 3, 2000) with a trading price of $18.56 on September 30, 2000. The Company also sold 70,000 shares of its common stock for $1.00 per share and 37,500 shares of its Series B Preferred Stock for $2.00 per share. On June 26,2000, the Company voluntarily notified NASD that it did not meet the minimum net capital requirements of a broker dealer. At that time the Company ceased its brokerage operations, except for executing sale orders for its customers. The management of the Company immediately began to develop and implement a plan to raise sufficient capital to allow the Company to resume its normal business activities and to be in compliance with the NASD net capital requirements. Subsequent to June 26, 2000, the Company exchanged 221,245 shares of its common stock for 332,708 shares of common stock in publicly traded companies with a fair value of approximate $300,000. Subsequent to obtaining the $300,000 in publicly traded common stocks the Company notified the NASD that it was in compliance with the NASD net capital requirements as of August 11, 2000. The Company's management is currently attempting to extend this exchange program to other publicly traded companies to raise additional capital. In September 2000, the Company authorized the sale of up to $1,250,000 of 10% convertible debentures and the issuance of 1,250,000 common stock purchase warrants, with an exercise price of $1.00 per share. As of September 30, 2000, the Company had received $650,000 of proceeds from the sale of the debentures. The debentures are due 180 days after issuance. For the nine months ended September 30, 2000, the Company expended $161,002 for the purchase of furniture and equipment. The Company requires additional capital to continue its business operations. There is no guarantee that the Company will be successful in obtaining sufficient capital to continue operations. SAFE HARBOR STATEMENT Certain statements in this Form 10-QSB, including information set forth under Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1955 (the Act). The Company desires to avail itself of certain "safe harbor" provisions of the Act and is therefore including this special note to enable the Company to do so. Forward-looking statements in this Form 10-QSB or hereafter included in other publicly available statements issued or released by the Company involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. Such future results are based upon management's best estimates based upon current conditions and the most recent results of operations. PART II - OTHER INFORMATION ITEM 3: CHANGES IN SECURITIES AND USE OF PROCEEDS In March 2000, the Company sold 70,000 shares of its common stock to an individual for $1.00 per share. In April 2000, the Company sold 37,500 shares of its Series B Preferred Stock for $2.00 per share. The proceeds have been used to fund operations of the Company. In the three month period ended September 30, 2000, the Company issued common stock as follows:

ITEM 4: OTHER INFORMATION None ITEM 5: EXHIBITS AND REPORTS ON FORM 8-K (a) Number Exhibit Description 27.1 Financial Data Schedule.(*) * Filed herewith. (b) Reports of Form 8-K: Form 8-K filed on September 15, 2000, in connection with First Atlanta Securities, L.L.C.acquisition. 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 thereunto duly authorized. Institutional Equity Holdings, Inc. Dated: Signature Title /s/: Robert A. Shuey, III President and --------------------------------------------------- Robert A. Shuey, III Chief Executive Officer /s/: Michael E. Vinez --------------------------------------------------- Chief Financial Officer Michael E. Vinez

Exhibit Index Exhibit No. Description 27.1 Financial Data Schedule.(*) (*) Filed herewith

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