General Securities Sales Supervisor Exam (Series 9/10) Study Guide
- Questions
- 200
- Time limit
- 5h 30m
- Passing score
- 70% each part
- Exam fee
- $410
- Governing body
- FINRA
The two-part supervisory qualification
The General Securities Sales Supervisor Exam is the qualification required to supervise sales activities in a general securities broker-dealer. It is administered by FINRA and is split into two parts commonly known as the Series 9 and the Series 10. Together, the two parts consist of 200 multiple-choice questions, and you must earn a passing score of 70 percent on each part — passing one part does not carry over to the other, so both must be cleared to earn the credential.
Why it is structured this way
Because supervision spans two distinct competency areas — general supervision (the Series 9 portion) and the supervision of options and general securities sales practices (the Series 10 portion) — separating the exam into two independently scored parts lets FINRA confirm you meet the standard in each area on its own. Candidates commonly schedule the two parts on different days so they can concentrate their preparation on one part at a time.
- Confirm you hold (or concurrently obtain) any prerequisite general securities representative registration before registering, since a supervisory qualification builds on a representative-level foundation.
- Treat the 70 percent threshold on each part as a hard floor — plan to score comfortably above it on practice exams to absorb test-day variance.
Two scores, one credential
Each of the two parts is graded against its own 70 percent passing standard, and the exam as a whole is built from 200 multiple-choice questions. Because the two parts are scored separately, your goal is not a single blended average — it is clearing 70 percent on each part independently.
Turning the numbers into a study plan
With 200 total multiple-choice items across the exam and a 70 percent bar per part, you can reverse-engineer a preparation target: build a bank of practice questions large enough that you consistently clear 70 percent on each part under timed conditions, then keep drilling the topics where you fall short. Since every question is multiple-choice, disciplined answer-elimination and careful reading of qualifiers ("except," "not," "most") are high-leverage skills.
- Take full-length, timed practice sets rather than untimed topic quizzes, so your pacing matches the real 200-item format.
- Track your percentage per part, not overall, so a strong Series 9 result doesn't mask a Series 10 gap that would still fail you.
- Do not leave any multiple-choice item blank — an unanswered item cannot earn credit, whereas an educated guess can.
Prepare for the format you'll face
Every question on this exam is one of 200 multiple-choice items, and you need 70 percent on each part to pass. That combination points to a clear preparation method: build fluency through repeated multiple-choice practice until your scores on each part sit reliably above the passing line.
Suggested cadence
- Learn the material by part. Study the Series 9 (general supervision) content and the Series 10 (options and general securities sales supervision) content as separate units, mirroring how the exam scores them.
- Drill in multiple-choice form. Because 100 percent of the exam is multiple-choice, practice exclusively in that format so recall and recognition match the test.
- Simulate full length. Sit timed sets scaled to the 200-question exam so stamina and pacing are rehearsed, not discovered on test day.
- Confirm the 70 percent floor. Only schedule the real exam once your practice scores clear 70 percent on each part with margin to spare.
Reviewing every missed question — including why each distractor is wrong — compounds faster than simply re-reading notes, because it targets the exact gaps standing between you and the 70 percent threshold.
Series 9/10 flashcards
33 cards on the highest-yield terms and rules. Grading uses spaced repetition and saves in this browser.
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How many questions are on the Series 9/10 exam, and what is the passing score?
The Series 9/10 has 200 multiple-choice questions total, and the passing score is 70 percent for each part.
What is the difference between the Series 9 and Series 10 parts?
The Series 9 covers options supervision, and the Series 10 covers general supervision of a branch office (sales, hiring, customer accounts, trading, and compliance).
Who must approve the opening of a new customer account at a branch?
A registered principal (the supervisor) must approve each new account, typically documented by signature on the new account form.
What must a supervisor review before options trading begins for a customer?
The supervisor confirms an Options Disclosure Document (ODD) was delivered at or before account approval and that a Registered Options Principal (ROP) approved the account based on suitability.
What supervisory review is required for discretionary accounts?
Each discretionary order must be identified as discretionary, and a principal must review discretionary accounts frequently to detect excessive trading (churning).
How must customer complaints be handled by a supervisor?
Written complaints must be recorded, reviewed, retained, and reported to FINRA; supervisors keep a complaint file at each branch.
What is the supervisor's role in reviewing correspondence and communications?
A principal must supervise the firm's communications with the public — retail communications generally need principal approval before use, and correspondence is subject to review under written procedures.
What triggers heightened supervision of a registered representative?
Disciplinary history, customer complaints, or a statutory disqualification can require a special written supervisory plan and closer monitoring of the rep's activity.
What is the covered call vs. protective put strategy from a supervisory suitability view?
A covered call (long stock + short call) generates income with limited upside; a protective put (long stock + long put) hedges downside like insurance — supervisors confirm the strategy matches the customer's objective.
What margin supervision applies to option positions?
Long options are paid in full (no margin), while uncovered (naked) short options require margin; supervisors ensure adequate margin and monitor uncovered writing due to unlimited risk.
What recordkeeping is a branch supervisor responsible for?
The supervisor ensures order tickets, account records, complaint files, and communications are accurately created and retained per the firm's written supervisory procedures.
What does the Series 9/10 qualification authorize a person to do?
It qualifies a General Securities Sales Supervisor to supervise sales activities in corporate, municipal, and options securities, plus REITs, direct participation programs, and investment company products.
What is the purpose of Written Supervisory Procedures (WSPs)?
WSPs document how a firm supervises each area of its business, assign responsibility to named principals, and are the framework a Sales Supervisor uses to detect and prevent violations.
What is a Registered Options Principal (ROP), and what is their authority?
A Registered Options Principal is a registered principal who has specific authority over all firm options business, including approval of customer accounts, customer qualifications, option strategy suitability, and options communications.
What are the suitability requirements for approving options trading authority?
Before approving options trading, the ROP must determine the customer's investment objectives, experience, and financial condition; options strategies must be suitable to the customer's profile and disclosed before account approval.
What is churning, and how does a supervisor detect it?
Churning is excessive trading for the purpose of generating commissions without regard to suitability. Supervisors detect it by reviewing trading frequency, turnover ratios, and customer objectives to identify patterns of over-trading.
What is the difference between discretionary and non-discretionary trading authority?
Discretionary authority permits a rep to decide whether and when to trade without specific customer authorization for each trade; non-discretionary requires a customer's prior approval for each transaction.
What supervisory approval must occur before a representative opens a customer margin account?
A registered principal must approve the margin account in writing, verify the customer meets margin requirements, and ensure a margin agreement (form W-8, W-9, etc.) is signed and retained.
What is a short sale, and what special supervision applies?
A short sale is selling a security the seller does not own with the intent to repurchase it at a lower price. Supervisors must verify the firm can borrow the security and that the sale complies with market rules (e.g., tick test).
What is the reg-T requirement, and who monitors it?
Regulation T sets minimum margin deposit levels for certain securities; the supervisor ensures the margin department maintains adequate margin and enforces margin calls when accounts fall below required levels.
What is a variable annuity, and what supervisory focus applies?
A variable annuity is an insurance product with a variable return linked to investment accounts. Supervisors ensure the rep is registered for annuities, verifies suitability, and communicates the liquidity and cost features.
What compliance issue arises from cold-calling, and how does a supervisor address it?
Cold-calling may violate the Do Not Call (DNC) list rules. Supervisors maintain and monitor the firm's DNC list, ensure reps use it, and track outreach to prevent violations.
What is a time and tick rule for short sales, and why is it important?
The tick rule restricts short sales to occur on an uptick in price (or a zero-plus-tick). Supervisors confirm the firm's systems enforce this rule to comply with short-sale regulations.
What is a limited power of attorney (LPOA), and what supervisory control is needed?
An LPOA grants a representative limited authority to manage an account (e.g., trading or withdrawal rights). The supervisor ensures LPOA forms are signed and retained, and that reps only exercise authority within the grant.
What supervisory procedures apply to retail communications and sales literature?
A registered principal must approve retail communications and advertising before publication; the firm tracks usage and ensures all claims are fair, balanced, and supported by substantiation.
What is an inside information or material non-public information (MNPI), and what is a supervisor's duty?
MNPI is non-public information that could affect security prices. Supervisors establish procedures to prevent insider trading, monitor communications, and restrict trading by insiders and restricted persons.
What is a customer's right to dispute a trade, and how does the supervisor manage this?
A customer may dispute trade execution or timing; supervisors investigate complaints, verify trade records, and ensure claims are resolved per the firm's procedures and regulatory rules.
What is a hedge fund, and what compliance considerations apply?
A hedge fund is an unregulated pooled investment using complex strategies and leverage. Supervisors ensure accredited investors meet requirements, disclosures are complete, and the firm's advertising is not misleading.
What is the three-day settlement rule (T+3), and what supervisory review applies?
Most trades settle in three business days (T+3). Supervisors monitor settlement and ensure fails to deliver or receive are resolved promptly, and that margin accounts are credited/debited correctly on settlement.
What is anti-money laundering (AML) compliance, and what does a supervisor oversee?
AML rules require firms to verify customer identity (KYC), monitor transactions for suspicious activity, and file Suspicious Activity Reports (SARs). Supervisors ensure the firm follows written AML procedures.
What supervisory procedure applies to a registered representative who has been terminated?
When a rep is terminated, the supervisor ensures the firm notifies FINRA, retrieves all documentation, and prevents the rep from accessing customer accounts or proprietary information.
What is a trade reclamation, and what supervisory review applies?
A trade reclamation is a customer claim that a trade was executed incorrectly or without authorization. Supervisors verify the order ticket matches the trade and customer intent, and may require reversal or compensation.
What supervisory procedures apply to lending of customer securities (stock loan)?
When a firm lends customer securities for short sales or otherwise, supervisors ensure the customer consents in writing, the firm reports the loan activity, and interest is credited properly.
Series 9/10 glossary
The General Securities Sales Supervisor Exam (Series 9/10) is a FINRA qualifying examination for supervisors of general securities sales activities, delivered in two parts totaling 200 multiple-choice questions, each part requiring a passing score of 70 percent to demonstrate competency in overseeing brokerage sales operations.
29 terms the Series 9/10 tests, defined in plain English.
- Best Execution
- An obligation requiring broker-dealers to execute customer orders in a manner that produces the most favorable terms reasonably available. A sales supervisor monitors order execution quality and ensures representatives execute orders promptly and at fair prices.
- Churning
- The excessive buying and selling of securities in a customer's account primarily to generate commissions, without legitimate investment objectives. A sales supervisor must detect and prevent this prohibited practice by monitoring account trading frequency and patterns relative to the account's size and stated investment goals.
- Covered Call
- An options strategy in which an investor holds shares of stock and sells call options against that same position, generating income while maintaining ownership. A Registered Options Principal must approve this strategy for eligible customers and understand its risk profile and suitability.
- Customer Account Agreement
- A written document signed by the customer and the firm that establishes the terms of the account relationship, including account type, trading authority, and dispute resolution procedures. A sales supervisor must ensure that all new accounts have a signed agreement before any trading occurs.
- Customer Complaint
- Any expressed dissatisfaction with the firm's business conduct or the products and services it offers, whether written or oral. A sales supervisor must ensure that complaints are documented, reported to compliance, and investigated in accordance with firm procedures and FINRA rules.
- Discretionary Account
- An account in which the customer authorizes a registered representative to make trading decisions without prior approval for each transaction. Such accounts require written customer authorization and heightened supervisory review.
- Equity Requirement
- The minimum dollar amount of customer capital (equity) that must remain in a margin account at all times to maintain the account. This differs from the maintenance percentage and is a critical supervisory metric that supervisors monitor daily.
- FINRA Rule 2210 (Communications with the Public)
- A FINRA rule that requires all advertising, sales literature, and communications to customers be accurate, clear, balanced, and not misleading. A sales supervisor is responsible for reviewing all firm communications and ensuring compliance with this foundational rule.
- Freeriding
- A prohibited practice in which a customer buys and then sells a security without ever paying for the initial purchase, using the sale proceeds to cover it. Supervisors must detect and prevent this activity in cash accounts.
- General Securities Sales Supervisor
- A principal-level individual authorized to supervise the sales and customer-facing activities of registered representatives at a broker-dealer. This is the specific supervisory capacity the Series 9/10 credential grants.
- Initial Margin
- The minimum amount of equity a customer must deposit to purchase or short sell securities on margin, set by the Federal Reserve under Regulation T. Supervisors verify that accounts meet the initial margin requirement before trades are executed.
- Know Your Customer (KYC)
- A fundamental supervisory requirement to gather and maintain accurate information about each customer's financial situation, investment objectives, risk tolerance, and experience. Sales supervisors must ensure their representatives obtain and regularly update this customer profile before making recommendations.
- Maintenance Margin
- The minimum amount of equity a customer must keep in a margin account after the initial purchase, below which a margin call is triggered. Supervisors monitor accounts to ensure equity stays above this threshold.
- Margin Call
- A demand for the customer to deposit additional funds into a margin account when the equity value falls below the maintenance margin requirement. A supervisor must ensure that margin calls are issued promptly and that customers have established procedures to meet them within the required timeframe.
- Options Assignment
- The process by which the seller of an option is obligated to fulfill the terms of the contract when the buyer exercises the option. A Registered Options Principal must ensure customers understand the assignment risk when selling options and the margin implications when assignment occurs.
- Options Exercise
- The action taken by an option buyer to enforce their right to buy (call) or sell (put) the underlying security at the strike price. A supervisor must be aware of customer exercise rights and the timeline for exercising options before expiration.
- Penny Stock
- A low-priced security, typically trading below five dollars per share, issued by small or start-up companies with heightened fraud and volatility risk. A supervisor must ensure that representatives follow heightened suitability standards and provide proper disclosures before recommending penny stocks.
- Position Limit
- The maximum number of options contracts on the same underlying security a customer may hold on one side of the market, designed to prevent market manipulation. Supervisors must monitor customer accounts to prevent breaches of these limits.
- Recordkeeping Requirements
- FINRA and SEC regulations requiring broker-dealers to maintain detailed records of customer accounts, transactions, communications, and supervisory activities for specified retention periods. A sales supervisor must ensure that records related to account supervision, approvals, and customer interactions are accurate and complete.
- Registered Options Principal
- A supervisory role responsible for approving customer options accounts and overseeing a firm's options-related sales activity and communications. The Series 9 portion of the exam largely covers this options supervision function.
- Regulation T
- A Federal Reserve rule governing the extension of credit by broker-dealers to customers, including the initial margin required to purchase securities. Supervisors must ensure customer margin accounts comply with its requirements.
- Series 9/10 (General Securities Sales Supervisor Exam)
- A two-part FINRA qualification exam that permits a registered representative to supervise sales activities at a general securities broker-dealer. The full exam consists of 200 multiple-choice questions, and a candidate must score at least 70 percent on each part to pass.
- Short Sale
- The sale of a security a customer does not own, with the expectation that the price will decline so the customer can repurchase it at a lower price. Supervisors must ensure that short sales comply with exchange rules, including the uptick rule and proper locate confirmation before execution.
- Special Memorandum Account (SMA)
- A calculation that tracks excess equity in a customer's margin account, representing buying power available for additional margin purchases without requiring a deposit. Supervisors must understand SMA calculations and monitor how customers utilize this available buying power.
- Straddle (Options Strategy)
- An options strategy in which an investor simultaneously buys (or sells) a call and a put on the same underlying security with the same strike price and expiration date. A Registered Options Principal must assess suitability for this volatile, directionally neutral strategy and ensure customers understand the risk and limited profit potential for short straddles.
- Suitability
- The requirement that a recommended securities transaction or strategy be appropriate for a specific customer based on their financial situation, objectives, risk tolerance, and other profile information. Supervisors must review recommendations to confirm they meet suitability obligations.
- Supervision Letter
- A written communication from a supervisor to a registered representative documenting a supervisory issue, requirement, or corrective action. Sales supervisors issue supervision letters to address compliance gaps, document training, or require changes in sales practices.
- Trade Blotter
- A chronological record of all securities transactions executed by a firm, including purchases and sales, used for recordkeeping and oversight. Supervisors review blotters as part of monitoring daily trading activity.
- Written Supervisory Procedures (WSPs)
- The documented policies and procedures a broker-dealer establishes to supervise the activities of its associated persons and ensure compliance with securities rules. A sales supervisor is responsible for enforcing the procedures relevant to their area.
Frequently asked questions
How many questions are on the Series 9/10 exam and what score do I need to pass?
The General Securities Sales Supervisor Exam (Series 9/10) contains 200 multiple-choice items, and the passing score is 70 percent for each part. Because the requirement applies to each part separately, you must clear the 70 percent bar on both the Series 9 portion and the Series 10 portion — a strong overall average will not compensate for falling short on one part. Plan your study time to reach a comfortable margin above 70 percent on each section rather than aiming to just squeak by.
Is the 70 percent passing score applied to the whole exam or to each part?
The passing score is 70 percent for each part, not a single combined threshold across the entire exam. This structure means the Series 9 and Series 10 parts are graded independently against the same 70 percent standard. As a practical consequence, you should treat the two parts as distinct milestones: if you pass one part but not the other, you will need to focus your retake preparation on the part you did not pass rather than re-studying everything equally.
How should I approach pacing across 200 questions?
With 200 multiple-choice items on the exam, pacing matters: you cannot afford to spend excessive time on any single question if you want to reach the end. Since you need 70 percent for each part to pass, a sound test-taking strategy is to answer the questions you know quickly, flag uncertain ones, and return to them — banking the points you are confident about first. Practicing full-length question sets in advance helps you build the stamina and rhythm needed to work through a 200-item exam without rushing at the finish.
Roughly how many questions can I miss and still pass?
Since the passing score is 70 percent for each part, you can miss up to about 30 percent of the scorable questions on a part and still pass that part. Applied to the 200-item total exam, 70 percent corresponds to answering roughly 140 items correctly overall, though the requirement is enforced separately on each part rather than on the combined count. Note that some exams include unscored pretest items that do not count toward your result, so use the 70 percent standard — not a fixed raw number — as your target, and always confirm the current scoring details on FINRA's official exam page.
Official sources
Primary documents used to verify the exam details shown on this page.
- General Securities Sales Supervisor Exam (Series 9 and 10)FINRAfinra.org
- Securities Industry Essentials (SIE) ExamFINRAfinra.org
- General Securities Representative Exam (Series 7)FINRAfinra.org
- FINRA Rule 1220 — Registration CategoriesFINRAfinra.org
- Qualification Exams OverviewFINRAfinra.org
- Series 9/10 Exam OverviewFINRAfinra.org
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