Overstock.com 2010 Annual Report Download - page 37

Table of Contents
personal user information gathered online or offline or require companies to establish privacy policies. For example, Federal Trade Commission regulations
restrict the collection and use of personal identifying information obtained from children under 13. Laws affecting privacy, security, retention, transfer and use
of personal user information have been passed by several jurisdictions, both domestic and foreign, including laws that require us to establish procedures to
notify users of privacy and security policies, obtain consent from users for collection and use of personal information, and/or provide users with the ability to
access, correct and delete personal information stored by us. Compliance with new and existing privacy and security laws is difficult and costly, as
interpretation and application of these laws evolves over time. Additional restrictions and requirements regarding data security and privacy are under nearly
continuous consideration by foreign countries, Congress and various states. These data protection statutes, regulations and interpretations may further restrict
our ability to collect demographic and personal information from users, which could be costly or harm our marketing efforts, and could require us to
implement new and potentially costly processes, procedures and/or protective measures.
Risks Relating to the Securities Markets and Ownership of Our Securities
The price of our securities may be volatile and you may lose all or a part of your investment.
The market price of our common stock historically has been subject to significant fluctuations. These fluctuations could continue. It is possible that in
future periods our results of operations may be below the expectations of public market analysts and investors. If this occurs, the market price of our securities
may decline. Some of the factors that could affect the market price of our securities are as follows:
changes in securities analysts' recommendations or estimates of our financial performance or publication of research reports by analysts;
changes in market valuations of similar companies;
announcements by us or our competitors of significant contracts, acquisitions, commercial relationships, joint ventures or capital commitments;
general market conditions;
actual or anticipated fluctuations in our operating results;
intellectual property or litigation developments;
changes in our management team;
economic factors unrelated to our performance; and
our issuance of additional shares of stock or other securities.
In addition, the securities markets have experienced significant price and trading volume fluctuations. These broad market fluctuations may adversely
affect the trading price of our securities. In the past, following periods of volatility in the market price of a public company's securities, securities class action
litigation has often been instituted against that company. Such litigation could result in substantial cost and a diversion of management's attention and
resources.
Sales by our significant stockholders could have an adverse effect on the market price of our stock.
Several of our stockholders own significant portions of our common stock. If one or more of stockholders were to sell all or a portion of their holdings of
our common stock, the market price of our common stock could be negatively impacted. The effect of such sales, or of significant portions of our stock being
offered or made available for sale, could result in strong downward pressure on our
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