Is the Series 79 exam hard?
Although the Series 79 is designed for junior-level bankers, it proves to be one of the most difficult exams offered by FINRA, particularly for test-takers who do not have education and work experience in accounting and finance.
Who needs the Series 79 exam?
investment bankersFinancial professionals who wish to work as entry-level investment bankers are required to take (and pass) the Series 79 exam. Candidates must also pass the Securities Industry Essentials exam in order to obtain registration, although it isn't required that the exams are taken together.
How do I get my Series 79 license?
How to Get Your Series 79 LicenseStep 1: Take and Pass the SIE Exam. ... Step 2: Secure a Sponsorship. ... Step 3: Study for the Series 79 Exam. ... Step 4: Take and Pass the Series 79 Exam.
How many times can you take series 79?
Candidates who do not pass the exam must wait 30 days before taking it again. However, if you fail it three times in succession, you must wait 180 days. Your firm will also have to sponsor you again for each retake, and you will have to pay the full fee each time.
What is the most difficult FINRA exam?
The Series 7 exam is often considered the most difficult securities licensing exam. But, the answer is up to you.
What does Series 79 allow you to do?
The Series 79 exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of an investment banking representative, including advising on or facilitating debt or equity securities offerings through a private placement or a public offering and mergers and acquisitions ...
How much does it cost to take series 79?
FINRA Representative-level ExamsDurationCostSeries 22 – Direct Participation Programs Limited Representative Exam1 hour and 30 minutes$60Series 57 - Securities Trader Representative Exam1 hour and 45 minutes$80Series 79 - Investment Banking Representative Exam2 hours and 30 minutes$3005 more rows
How much does it cost to pass Series 79?
73%Be sure to spend at least 20 hours of that study time on practice exams and questions (all the Series 79 test prep providers below provide question banks and practice exams). The Series 79 exam has a passing score of 73% (this may change after Oct.
Do people fail the Series 79?
As a Series 79 tutor, we see a lot of students for this exam. Similar to other FINRA exams for which we tutor, about half of our students seek us out after a failed first attempt. There is a major difference between the pass rate of those who first take the exam, as oppose to those on their second time around.
Is there a lot of math on the Series 79?
Let's face it, the series 79 exam is extremely challenging. You will be required to apply deep analytical reasoning and challenging mathematical concepts. Even if you understand what the questions are asking, it can be difficult to translate the key concepts into mathematical equations.
Is the series 79 or 63 Harder?
79 is the hardest because it is pure memorization. Take the 79 course with Knopman. They basically tell you what questions are on the exam.
Can you study for the Series 79 in a week?
The Series 79 Top-Off Exam typically requires 50–75 hours of total prep. New investment bankers should expect to commit around 75 total hours (3–5 weeks while working full-time).
Do investment banks require Series 79?
In order to obtain registration as an Investment Banking Representative, candidates must pass both the Series 79 and a general knowledge co-requisite, the Securities Industry Essentials (SIE) exam.
What certifications do investment bankers need?
Many investment banks require their investment bankers to have their Series 7 (or General Securities Representative), Series 63 (Uniform Securities Agent State Law), Series 66 (Uniform Combined State Law), or Series 79 (Investment Banking Representative) credentials from the Financial Industry Regulatory Authority, the ...
What series exams can I take without a sponsor?
SIE and Series 63 exams do not require any sponsoring program. Series 7, 79, and 82 require a FINRA exam sponsorship before you can take the test.
Is the series 79 or 63 Harder?
79 is the hardest because it is pure memorization. Take the 79 course with Knopman. They basically tell you what questions are on the exam.
What can I do with a Series (#) license?
We provide a brief description of each exam on each series exam page on our website. You can find more information about each series exam by contac...
What does the Series (#) exam cover?
We provide a brief description of each exam on each series exam page on our website.You can find more information about each series exam by contact...
Which series exams do not require a broker/dealer to sponsor them?
Licenses that do not require a sponsor include the Series 3, 30, 31, 32, 34, 63, 65 & 66. The Securities Industry Essentials (SIE) exam can also be...
Which testing centers administer the securities licensing exams?
Prometric (www.prometric.com) and Pearson Vue (www.pearsonvue.com)
Who can sponsor me?
Sponsorship is usually done through a broker/dealer. Contact FINRA® at 800.289.9999 or visit their website at www.finra.org for further information...
What Is Series 79?
The term "Series 79" refers to an exam taken by financial professionals who wish to become investment bankers. The test, which is administered by the Financial Industry Regulatory Authority (FINRA), assesses the competency of those who want to work in investment banking. It ensures that these registered representatives have the skills and knowledge needed to act as investment bankers by testing them in several key areas. Individuals who want to take the exam must be sponsored by a FINRA member firm.
What does Finra do?
FINRA makes accommodations for individuals who may require assistance, aids, or modifications, such as large print exam books and private testing rooms. 11
What does a Series 79 license do?
They are licensed to advise clients, help facilitate debt and equity offerings, take part in mergers and acquisitions, make tender offers, conduct financial restructuring and asset sales, as well as corporate reorganizations.
What is the FINRA test?
The test, which is administered by the Financial Industry Regulatory Authority (FINRA), assesses the competency of those who want to work in investment banking. It ensures that these registered representatives have the skills and knowledge needed to act as investment bankers by testing them in several key areas.
What is the Financial Industry Regulatory Authority?
The Financial Industry Regulatory Authority is a nongovernmental organization that regulates brokers, broker-dealers, and investment bankers in the United States. In order to become registered with the agency, financial professionals must pass certain exams, which test their knowledge, expertise, and abilities in certain securities-related activities. Once an individual passes, they become licensed in that area of expertise. 1
What can a passing candidate do?
Passing candidates can participate in debt and equity offerings, M&A activity, asset sales, and other investment banking activities.
How long is the Series 79 exam?
The exam consists of 75 scored and 10 unscored questions and lasts two and a half hours.
What is a series 79 exam?
The Series 79 exam, also called the Investment Banking Representative Qualification Examination, is an exam administered by FINRA for investment banking professionals. As long as the investment banker is engaged exclusively in investment banking activities, this exam can be taken instead of the far broader (and less relevant) Series 7 exam. Specifically, someone who passes the Series 79 is permitted to engage in the following activities: 1 Debt and equity offerings (private placement or public offering) 2 Mergers and acquisitions and tender offers (read about tender offers vs mergers here) 3 Financial restructurings, divestitures or other corporate reorganizations (learn about financial restructuring) 4 Asset sales (learn about asset sales vs stock sales) 5 Business combination transactions (learn about business combinations)
How long does it take to pass Series 79?
Depending on the amount of investment banking training you’ve gone through, expect to spend anywhere from 60 to 100 hours preparing for the Series 79 exam. Be sure to spend at least 20 hours of that study time on practice exams and questions (all the Series 79 test prep providers below provide question banks and practice exams). The Series 79 exam has a passing score of 73% (this may change after Oct. 1 , 2018). Until then, a good rule of thumb is that practice exam scores of 80 or above indicate Series 79 preparedness.
What is the 79 series?
Overview of the Series 79 Exam. The Series 79 exam, also called the Investment Banking Representative Qualification Examination, is an exam administered by FINRA for investment banking professionals. As long as the investment banker is engaged exclusively in investment banking activities, this exam can be taken instead of the far broader ...
What is the passing score for the Series 79?
The Series 79 exam has a passing score of 73% (this may change after Oct. 1 , 2018). Until then, a good rule of thumb is that practice exam scores of 80 or above indicate Series 79 preparedness. After Oct. 1, 2018, the Series 79 will be shorter, but will need to be taken along with the SIE (unless you take the SIE on your own before getting hired).
When did the Series 79 exam change?
Like most other FINRA exams, the Series 79 exam is undergoing a significant change beginning Oct. 1, 2018. While most topics will remain essentially unchanged, one notable difference is the elimination of questions on general securities industry regulation, which accounted for 13% of the pre-Oct. 1, 2018 Series 79.
Is the Series 79 exam relevant to investment banking?
Unlike the Series 7, which is widely considered irrelevant to a finance professional’s day-to-day work, the Series 79 test concepts applicable to real-world investment banking. This means some new hires will already be quite familiar with exam concepts (often through a Wall Street Prep training program ), thereby reducing the amount of time required for Series 79-specific studying.
What is the Series 79 exam?
Passing the Series 79 exam is required for applicants of entry-level jobs as investment banking representatives. In addition to the Securities Industry Essentials (SIE) exam, this test is a necessary step to obtaining registration for the job. Both tests are administered by the Financial Industry Regulatory Authority (FINRA). 1
What is a series 24 principal?
Since the exam focuses on investment banking, the Series 24 General Securities Principal is limited to investment banking supervisory responsibilities if the candidate only has passed the Series 79 exam. 4. Testers generally need the Series 79 registration even if they already have the Series 7.
What is investment banking?
Investment banking is only a small portion of the Series 7 exam, most of which is more relevant to the functions and services of retail securities firms. An investment banking committee agreed on the major duties, job functions, and tasks associated with those working in the field after conducting a job analysis.
What is debt offering?
A debt offering normally comes in the form of a coupon or corporate bond, in which the issuer promises to pay the bondholder or investor their principal investment along with interest by a certain date. An equity offering, on the other hand, involves the issuance of new shares of corporate stock.
How long does it take to get a Series 7?
The Series 79 exam is 75 questions and takes 2.5 hours while the Series 7 is made up of 125 questions and takes three hours 45 minutes to complete.
What is advisory services?
Advisory services are a very important part of an investment banker's role, especially when it mergers and acquisitions. M&A refers to the consolidation of companies or assets. This can take place through a number of financial transactions. Some responsibilities that a Series 79 might be required for under this category can include:
What are the options companies have when they need to raise money?
Companies have several options available to them when they need to raise money. Along with borrowing money from a financial institution, they may issue a debt or equity offering:
What is the Series 79 top-off exam?
As part of this restructuring, FINRA created a tailored top-off examination for earning the Series 79 license. You should take the Series 79 top-off exam if you want to be licensed to sell investment banking products.
Do I need to take the Series 79 top-off exam if I already have a different securities license?
It depends. You might not need the Series 79 if you have a Series 7 license, and you want to sell a broader range of securities than those associated with investment banking. However, Series 7 license holders usually earn their Series 79 licenses if they plan to focus investment banking as registered representatives. You should consult with your firm before deciding whether you need a license or not.
Is the Series 79 exam paper or computer-based?
Like all other securities qualification exams, the Series 79 exam is administered by computer at a Prometric testing center.
What topics are covered on the Series 79 exam?
The Series 79 exam topics assess an entry-level registered representative’s competency and degree of knowledge associated with carrying out the three critical functions of an investment banking representative. This includes advising on or facilitating debt or equity securities offerings through a private placement or a public offering and mergers and acquisitions. Some of the topics covered are:
How many questions are on the Series 79 exam?
The exam consists of 75 multiple- choice questions, and each question has four answer choices. There are also 10 additional, unidentified and unscored pretest questions that do not contribute to your score that are randomly distributed throughout the exam.
How hard is the Series 79 exam?
Candidates must apply their knowledge to specific scenarios related to the three investment banking functions identified as critical by FINRA. The degree of Series 79 exam difficulty, therefore, is quite high. The questions are detailed with a heavy emphasis on data and analysis. So you should expect it to be challenging; however, with dedicated and focused preparation, it is possible.
What is the difference between the FINRA Series 79 and Series 7 license?
If you hold a Series 79 license, you can engage in the activities of investment banking. By contrast, the Series 7 license enables you to sell corporate stocks and bonds, municipal bonds, mutual funds, variable annuities, options, direct participation program partnerships, collateralized mortgage obligations, and more. Although each is independent of the other, the general industry consensus is that a representative with a Series 7 license who wants to work investment banking should earn the Series 79 license.
What is analysis before a bid?
Analysis before the bid ◦ Determination or assessment of the strategy, resources, financial capacity of the buyer ◦ Evaluation of rationale for the acquisition and value of the buyer’s business ◦ Identification of potential corporate, structural or legal impediments to the transaction (e.g., control share acquisition statutes, shareholder rights plans, staggered boards) ◦ Coordination with the buyer’s tax advisors in the identification of potential tax issues and their financial implications (tax-free reorganization, recapitalizations, IRS Rule 338(h)(10), elections, stock versus cash) ◦ Review of the confidential offering memorandum and confidentiality agreement provided by the seller ◦ Analysis of the target’s financial results, future prospects, market position, industry dynamics, potential strategic value to the buyer and potential synergies with the buyer ◦ Production of preliminary stand-alone and pro forma valuations of the target through comparable company analysis, precedent transaction analysis, discounted cash flow (DCF) analysis, leveraged buyout (LBO) analysis and other relevant analyses ◦ Assistance with evaluation of credit implications of the potential transaction ◦ Assessment of the capabilities of other buyers and informing of the buyer regarding recent developments among other buyers and competitors ◦ Evaluation of potential market reaction announcements concerning a merger/acquisition
What is private placement?
Private placements, including the performance of tasks similar to those associated with public offerings and tasks that are unique to private placement ◦ Structuring of appropriate private placement securities, convertibles, preferred stock, subordinated debt, warrants ◦ Drafting and execution of engagement documentation for private placements and the placement agent agreement ◦ Identification of the list of potential investors and determination of the types of investors for whom private placement is appropriate ◦ Determination of eligibility of interested investors and procurement of non-binding commitments ◦ Preparation of the private offering documents, including but not limited to the private placement memorandum (PPM), confidentiality agreement, teaser (i.e., executive summary or one-page document describing financing opportunities to attract interest), and security term sheets (i.e., expected pricing)
How is the series 79 exam administered?
The exam is administered via computer . A tutorial on how to take the exam is provided prior to taking the exam. Each candidate’s exam includes 10 additional, unidentified pretest items that do not contribute toward the candidate's score. The pretest items are randomly distributed throughout the exam. Therefore, each candidate’s exam consists of a total of 85 items (75 scored and 10 unscored). There is no penalty for guessing. Therefore, candidates should attempt to answer all items. Candidates will be allowed 2 hours and 30 minutes to complete the Series 79 exam.
What is deal file?
The deal file, including correspondence with underwriting group members, selling groups and/or the issuer, archives of pitch and marketing materials, information used for road shows, book building documents, prospectuses, and copies of underwriting materials ◦ Understanding of books and record requirements ◦ Tracking of billing and finalization of the transaction
What is the Series 79 exam?
The Series 79 exam is designed to assess the competency of entry-level Investment Banking Representatives. The Series 79 exam seeks to measure the degree to which each candidate possesses the knowledge, skills and abilities needed to perform the critical functions of an Investment Banking Representative. In order to obtain registration as an Investment Banking Representative, candidates must pass both the Series 79 and a general knowledge co-requisite, the Securities Industry Essentials (SIE) exam. For more information about the activities requiring registration as an Investment Banking Representative, see FINRA Rule 1220(b).
What Is Series 79?
- The term "Series 79" refers to an exam taken by financial professionals who wish to become inv…
The Series 79 exam is taken by financial professionals who want to become investment bankers. - The exam tests knowledge and skills in key areas, including data, underwriting, new financing, re…
The exam consists of 75 scored and 10 unscored questions and lasts two and a half hours.
Understanding Series 79
- The Financial Industry Regulatory Authority is a nongovernmental organization that regulates br…
One of the exams offered by FINRA is the Series 79 exam or the Investment Banking Representative Exam. It assesses the level of knowledge, skills, and ethical background candidates have for investment banking functions, some of which include mergers & acquisition…
Series 79 Focus
- The exam is made up of 75 multiple-choice questions. Each question contains four possible choices. There are also 10 unscored questions that appear throughout the exam and are not labeled. The exam is divided and questions are broken up as follows: 4
Series 79 Prerequisites
- There are no prerequisites to take the Series 79 exam, although candidates must also pass the SIE exam as a corequisite. 4 Candidates, however, must be sponsored by a FINRA or self-regulatory organization member firm before they can take the exam. A $245 fee must be paid in order to sit for the exam. 2
Series 79 Permitted Activities
- As noted above, the Series 79 exam tests individuals on the knowledge and skills they need to w…
Debt and equity offerings, including private placements and public offerings
Series 79 Question Topics
- There are a number of different prep courses and resources available for candidates who need s…
As noted above, this topic covers the collection, analysis, and evaluation of data. Topics include trend and company analysis, securities offerings, and M&A activity. Individuals are also tested on the analysis of investor and shareholder data, financing opportunities for corporations, and the d… - This function tests a candidate's knowledge on issues relating to underwriting and new financin…
The last function in the exam tests knowledge in M&A, tender offers, and financial restructuring transactions. Candidates may be asked about their knowledge of sell-side M&A transactions (set up, marketing, and finalization), buy-side transactions, regulations about tender offers, and claim…
Series 79 Exam Details
- The exam is closed-book. Candidates are not allowed to bring in any reference materials with th…
FINRA makes accommodations for individuals who may require assistance, aids, or modifications, such as large print exam books and private testing rooms. 11
Series 79 FAQs
- Is the Series 79 Harder Than the SIE Exam?
The Series 79 exam is generally considered more difficult than the Securities Industry Essentials (SIE) exam. The SIE exam is normally taken first and, as such, is considered an introduction to the Series 79 exam, which tests individuals on concepts at a more advanced and higher level. - What Does Having a Series 79 License Allow You to Do?
Individuals who successfully pass the exam and earn a Series 79 license work in investment banking as analysts or bankers. They are licensed to advise clients, help facilitate debt and equity offerings, take part in mergers and acquisitions, make tender offers, conduct financial restructur…
The Bottom Line
- Financial professionals are regulated and must abide by the rules established by financial authorities. In order to be registered, these individuals must qualify for and pass certain exams in order to work in their fields. The Series 79 exam administered by FINRA allows registered representatives to work in the investment banking industry. These professionals can facilitate a …
Focus on Investment Banking
Series 79 Exam Prerequisites
- The Series 79 exam satisfies the Series 24 prerequisite as a representative exam. Since the exam focuses on investment banking, the Series 24 General Securities Principal is limited to investment banking supervisory responsibilities if the candidate only has passed the Series 79 exam.4 Testers generally need the Series 79 registration even if they already have the Series 7. This is o…
Debt Or Equity Offerings
- Companies have several options available to them when they need to raise money. Along with borrowing money from a financial institution, they may issue a debt or equityoffering: 1. A debt offering normally comes in the form of a coupon or corporate bond, in which the issuer promises to pay the bondholder or investor their principal investment along with interest by a certain date…
Mergers and Acquisitions (M&A) and Restructuring
- Advisory services are a very important part of an investment banker's role, especially when it mergers and acquisitions. M&A refers to the consolidation of companies or assets. This can take place through a number of financial transactions. Some responsibilities that a Series 79 might be required for under this category can include: 1. Tender offers 2. Selling assets 3. Corporate reor…
Series 79 Exceptions
- Series 79 registration may not be required for professionals who have limited involvement in investment banking activities. There is some leeway, though, in some jobs in which new associates rotate among various business areas and departments for training purposes. These financial professionals are generally given a six-month grace period while they are training. For …
The Actual Exam
- A tutorial on the exam is provided prior to taking it. The exam is made up of 75 multiple choice questions and is completed on a personal computer. Each candidate’s exam includes 10 additional questions that do not contribute to the candidate's score.6 Candidates are given 150 minutes to complete the exam. The results are available immediately after the exam as a pass o…
Test Sections
- There are three sections to the test. The 10 additional questions are scattered throughout at random and are not identified as such.
All About The Investment Banking Series 79 Exam FAQs
- Is the Series 79 Easier Than the Series 7?
The Series 79 and Series 7 are two different exams required by financial professionals who wish to obtain registration by FINRA. While the Series 7 is required by all securities representatives at the entry-level, the Series 79 exam is a requirement for anyone who wants to work as an entry-le… - How Hard Is the Series 79 To Pass?
The Series 79 exam is more difficult than the Securities Industry Essentials exam. The SIE exam is commonly considered an introductory exam while the Series 79 involves concepts that may be more complex required by those who need a higher degree of skills in the investment banking in…
The Bottom Line
- Anyone who wishes to perform certain duties in the financial industry must become a registered representative with the Financial Industry Regulatory Authority. In order to become registered, individuals must pass certain exams. The type of exam depends on the type of position they seek. Professionals who want to become entry-level investment bankers must pass the Series 79 exa…