- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.