Introduction to Series 9/10
Series 9/10, also known as the General Securities Sales Supervisor Qualification Exams, are pivotal for those wishing to supervise sales activities at a securities-oriented branch office. Successful candidates must possess a Series 7 license before they venture into the Series 9/10 exams.
These exams span various essentials, including options trading and the oversight of sales activities and trading practices in the securities markets. The Series 9/10 exams have two parts; Series 9, the shorter section, focuses on options sales and related regulations, whereas Series 10 dives deeper into a wider range of supervisory subjects.
Empowering Your Career with Series 9/10 Permitted Activities
By clearing the Series 9/10 exams, you are authorized to oversee the following activities:
- Corporate securities sales
- Options trading
- Trading practices of equity and debt securities
- Sales and practices of mutual funds, government securities, and REITs
- Management of variable annuities and variable life insurance
- Supervision of mortgage-backed and asset-backed securities
- Direct participation programs
Essential Eligibility for Series 9/10
Potential candidates must be registered with a FINRA member firm or another self-regulatory organization and must have previously passed the Series 7 General Securities Representative test.
Grasping the Series 9/10 Test Content
The Series 9/10 exams are composed of 215 multiple-choice questions: 60 for Series 9 and 145 for Series 10. The exams also have 15 unscored questions randomly distributed. You have 90 minutes to complete Series 9, and four hours for Series 10. A minimum score of 70% is needed to pass.
Key functional areas of the exams include:
Series 10 (Part 1)
- Supervising associated persons and personnel management activities (28 questions)
- Supervising the opening and maintenance of customer accounts (49 questions)
- Supervising sales practices and general trading activities (52 questions)
- Supervising communications with the public
Series 9 (Part 2)
- Supervising the opening and maintenance of customer options accounts (18 questions)
- Supervising sales practices and general options trading activities (19 questions)
- Supervising options communications (5 questions)
- Supervising associated persons and personnel management activities (13 questions)
Sample Questions to Test Your Knowledge
Sharpen your skills with these sample questions:
Example 1: Which of the following items is considered retail communication?
- (A) Electronic communication distributed to institutional investors on a daily basis
- (B) Social media communication with institutional investors on a daily basis
- (C) Written communication distributed to 10 retail investors within a 30-day period
- (D) Written communication distributed to more than 25 retail investors within a 30-day period
Answer: (D)
Example 2: A qualified person must inspect an office of supervisory jurisdiction (OSJ) at least:
- (A) Quarterly
- (B) Annually
- (C) Every two years
- (D) Every three years
Answer: (B)
Example 3: Listed equity options would not be adjusted for which of the following actions in the underlying security?
- (A) A 2-for-1 stock split
- (B) A 1-for-5 reverse stock split
- (C) A stock dividend of 5%
- (D) A cash dividend of $0.50
Answer: (D)
Differentiating Series 9/10 from Series 24
Both the Series 9/10 and Series 24 exams prepare candidates to assume key supervisory roles in financial operations. However, a principal with a Series 24 certification is qualified to supervise a broader array of activities, including investment banking, mergers and acquisitions, and corporate financing, along with all coverage of Series 9/10 except for specific options and government securities oversight which is covered more specifically under Series 9/10.
Embrace your journey towards becoming a proficient supervisor in general securities by mastering the Series 9/10 exams.
Related Terms: Series 7, Series 24, FINRA, General Securities Representative, Branch Office.
References
- Financial Industry Regulatory Authority. “Series 9 and 10 – General Securities Sales Supervisor Exams”.
- Financial Industry Regulatory Authority. “Permitted Activities of Registered Principals”.
- Financial Industry Regulatory Authority. “General Securities Sales Supervisor Qualification Examination (Test Series 9 and 10): Study Outline”, Page 3.
- Financial Industry Regulatory Authority. “General Securities Sales Supervisor Qualification Examination (Series 9/10): Content Outline”, Page 27.
