Series 9/10

What is Series 9/10

Series 9/10 alludes to a two-part securities exam and license qualifying the holder for oversee sales activities at an overall securities-situated branch office. Before taking the Series 9/10 Exams, otherwise called the General Securities Sales Supervisor Qualification Exams, a candidate must have a Series 7 license.

The Series 9/10 covers points, for example, the supervision of options and general securities sales and trading rehearses in primary and secondary markets. The Series 9/10 exams are administered by the Financial Industry Regulatory Authority (FINRA) and were formerly known as the Series 8 Exam. As the name would propose, the exam is broken into two parts; the Series 9 is the more limited and covers options sales and trading, as well as regulation and administration. Series 10 addresses a more profound jump into a comparable however more extensive scope of subjects and requirements.

Series 9/10 Permitted Activities

The Series 9/10 is intended to safeguard the investing public by measuring the capability of General Securities Sales Supervisors and guaranteeing their mastery in the accompanying areas:

Sale of corporate securities; freedoms; warrants; closed-end funds; money market funds; REITs; asset-backed securities; mortgage-backed securities (corporate); equity options; options on (corporate) backed securities; mutual funds; variable annuities and variable life protection; government securities; repos and certificates of accrual on government securities; direct participation programs.

Series 9/10 Eligibility

Series 9/10 candidates must be registered with a FINRA member firm or other self-regulatory organization, and must as of now have passed the Series 7 General Securities Representative test.

Series 9/10 Test Content

The Series 9/10 Exam comprises of 215 numerous decision inquiries in four major substance areas, 60 inquiries for the Series 9 and 145 inquiries for the Series 10. This total incorporates 15 unscored questions haphazardly positioned in each part (five in the Series 9 and 10 in the Series 10). Candidates are allocated 90 minutes to complete the Series 9 and four hours to complete the Series 10. There is no penalty for speculating so candidates ought to endeavor to address each inquiry. The test is administered by means of computer and a score of 70% is required to pass. For more on the exam, see FINRA's Content Outline for the Series 9/10.

Questions are every now and again different or refreshed in light of the presentation of new rules and amendments. Below are the job functions the exam tests for, as well as the number of scored questions covering that function:

Series 10 (Part 1):

Function 1: Supervise associated persons and personnel management activities (28 inquiries)
Function 2: Supervise the opening and maintenance of customer accounts (49 inquiries)
Function 3: Supervise sales practices and general trading activities (52 inquiries)
Function 4: Supervise communications with the public

Series 9 (Part 2):

Function 1: Supervise the opening and maintenance of customer options accounts (18 inquiries)
Function 2: Supervise sales practices and general options trading activities (19 inquiries)
Function 3: Supervise options communications (5 inquiries)
Function 4: Supervise associated persons and personnel management activities (13 inquiries)

Series 9/10 Exam Sample Questions

Below are samples FINRA has given of the inquiries types/designs, and the subject matter a Series 9/10 test-taker is probably going to experience. The right responses are noted with a reference mark:

Example 1: Which of the accompanying things is viewed as retail communication?

(A) Electronic communication distributed to institutional investors consistently

(B) Social media communication with institutional investors consistently

(D) Written communication distributed to in excess of 25 retail investors inside a 30-day period*

Example 2: A qualified person must investigate an office of supervisory jurisdiction (OSJ) at any rate:

(A) Quarterly

(B) Annually*

(D) Every three years

Example 3: Listed equity options couldn't be adjusted for which of the accompanying activities in the underlying security?

(A) A 2-for-1 stock split

(B) A 1-for-5 reverse stock split

(D) A cash dividend of $0.50*

The Difference Between Series 9/10 and Series 24

Both Series 9/10 and 24 are the exams that must be completed by a principal before they can embrace certain sales activities.

As indicated by the Financial Industry Regulatory Authority (FINRA), a principal who has completed the Series 24 examination is qualified to direct the accompanying sales activities:

"Corporate securities; freedoms; warrants; closed-end funds; money market funds; REITS; asset-backed securities; (corporate) mortgage-backed securities; mutual funds; variable annuities and variable life protection; direct participation programs; securities traders; venture capital; mergers and acquisitions; and corporate financing."

FINRA demonstrates that a principal who has completed the Series 24 exam is likewise qualified to direct, notwithstanding sales, the overall investment banking and securities business of a member firm.

Completion of the Series 9/10 examination, which covers more landscape, qualifies a principal (excluding securities traders and those engaged with venture capital; mergers and acquisitions and corporate financing) to direct sales in the entirety of the abovementioned, as well as the accompanying: equity options; options on [corporate] mortgage-backed securities; government securities; repos and certificates of accrual on government securities; municipal securities, and municipal fund securities.