The Series 9/10 exam is a two-part securities qualification exam administered by FINRA that grants the license holder the authority to supervise sales activities at a general securities-oriented branch office.
Exam Structure
The Series 9/10 exam is split into two parts:
- Series 9: This part focuses on understanding and applying general securities options.
- Series 10: Encompasses broader supervisory and general securities topics.
Content Overview
- Series 9:
- Options Theory
- Regulatory Requirements
- Compliance Regulations
- Series 10:
- Supervisory and Compliance Functions
- Sales Practice Violations
- Customer Accounts Management
Sample Questions
Series 9 Sample Question
Which of the following is true regarding the exercise of an options contract?
A. Only the buyer has the right to exercise the option.
B. Only the seller can exercise the option.
C. Both the buyer and the seller can exercise the option.
Series 10 Sample Question
What is the primary responsibility of a branch office manager?
A. Ensuring high sales targets are met.
B. Supervising the day-to-day activities of the branch staff.
C. Implementing marketing strategies.
Similar Tests
- Series 7: General securities representative exam.
- Series 24: General securities principal—allows the holder to supervise the activities of a broker-dealer’s investment banking, securities trading, and market-making operations.
- Series 26: Investment company and variable products principal.
Special Considerations
Obtaining the Series 9/10 license is crucial for those aiming to take on supervisory roles within broker-dealer firms. This certification helps ensure that branch office managers are well equipped to oversee operations and comply with regulatory standards.
Historical Context
The Series 9/10 exam was created to replace the older Series 8 exam, which encompassed similar supervisory and compliance topics. The divide into two separate exams allows for a more focused and thorough assessment of the candidate’s capabilities.
Applicability
Professionals in securities firms who aim to progress into senior supervisory roles must successfully pass both parts of the Series 9/10 exam. This is particularly applicable to branch office managers who are responsible for overseeing sales practice and compliance within the firm.
Comparison to Related Terms
- Series 7: While the Series 7 exam allows individuals to trade a broad range of securities, the Series 9/10 focuses on the supervisory aspect.
- Series 24: Grants supervisory authority at a higher level compared to the branch-level focus of Series 9/10.
FAQs
What is the passing score for the Series 9/10 exams?
Can I take the Series 9 or Series 10 separately?
References
- FINRA. “Series 9/10 Exam Content Outline.”
- Investopedia. “What is Series 9/10?.”
Summary
The Series 9/10 exam is essential for individuals aspiring to supervisory roles within securities firms, equipping them with the necessary knowledge and skills to manage and comply with securities sales practices. With comprehensive coverage of both options and general securities supervisory topics, passing both exams ensures one is well-prepared for the challenges faced in branch office management.
