Series 79 Exam 2025: Cost, Key Topics & Essential Prerequisites for Investment Bankers

Julia Kagan is a financial and consumer journalist and former senior editor for personal finance at Investopedia.

What Is the Series 79 Exam in 2024?

The Series 79 exam is a specialized test administered by the Financial Industry Regulatory Authority (FINRA) designed for financial professionals aiming to become licensed investment bankers. This exam evaluates candidates' knowledge and skills in critical investment banking functions including mergers and acquisitions, underwriting, and financial restructuring. To be eligible, candidates must be sponsored by a FINRA member firm and pass the Securities Industry Essentials (SIE) exam as a co-requisite.

Key Highlights

• The Series 79 exam is essential for financial professionals targeting a career in investment banking.
• The test covers vital topics such as data analysis, underwriting, new financing, M&A transactions, and corporate restructuring.
• The exam comprises 75 scored multiple-choice questions plus 10 unscored pretest questions, to be completed within 2.5 hours.
• A minimum passing score of 73% is required to obtain the license.
• Successfully licensed candidates can engage in debt and equity offerings, mergers and acquisitions, tender offers, and other investment banking activities.

Understanding the Role of the Series 79 Exam

FINRA, a non-governmental regulatory organization, oversees the licensing of brokers, broker-dealers, and investment bankers in the United States. Passing the Series 79 exam certifies that a registered representative possesses the expertise required to operate in investment banking roles. This exam focuses on specialized knowledge beyond the broader Series 7 exam, catering specifically to investment banking professionals.

Since its restructuring in October 2018, the Series 79 exam must be passed alongside the Securities Industry Essentials (SIE) exam, ensuring candidates have foundational industry knowledge in addition to advanced investment banking skills.

Historical Insight

Enhanced regulations introduced in 2009 aimed to better prepare candidates for the unique demands of investment banking and its supervisory roles.

Exam Focus Areas for Series 79

The 2024 Series 79 exam consists of 75 multiple-choice questions with four answer choices each, plus 10 unscored questions distributed throughout. Candidates are allotted two and a half hours to complete the exam.

Prerequisites and Costs

While there are no formal prerequisites to register for the Series 79 exam, candidates must pass the SIE exam concurrently and secure sponsorship from a FINRA member firm. The examination fee is $245 as of 2024.

Permitted Activities After Passing Series 79

Licensed professionals can actively participate in a variety of investment banking activities, including:

• Debt and equity offerings, including private placements and public offerings
• Mergers and acquisitions (M&A)
• Tender offers
• Financial restructurings
• Asset sales
• Divestitures and corporate reorganizations
• Business combination transactions

Detailed Series 79 Exam Topics

To help candidates prepare, here is an overview of the primary content areas tested on the exam:

Function 1: Data Analysis and Evaluation

This section assesses the candidate’s ability to collect, analyze, and evaluate financial data, including company trends, securities offerings, M&A transactions, investor and shareholder data, financing opportunities, and due diligence processes.

Function 2: Underwriting and New Financing

Focuses on underwriting procedures, types of securities offerings, registration requirements, underwriting agreements and commitments, and the intricacies of financing deal execution.

Function 3: Mergers & Acquisitions and Financial Restructuring

Tests knowledge of sell-side and buy-side M&A transactions, tender offer regulations, financial restructuring, and bankruptcy claims.

Exam Administration and Rules

The Series 79 exam is closed-book, and candidates cannot bring any reference materials. It is available at designated testing centers or through online proctoring. Testing centers provide necessary supplies such as calculators, scratch paper, and noise-canceling headphones, while online test-takers receive virtual tools. FINRA also offers accommodations for candidates requiring special assistance.

Frequently Asked Questions (FAQs)

Is the Series 79 Exam More Difficult Than the SIE Exam?

Yes, the Series 79 exam is considered more challenging as it covers advanced investment banking concepts, whereas the SIE exam provides foundational industry knowledge.

What Does a Series 79 License Enable Me To Do?

It authorizes professionals to advise clients, facilitate debt and equity offerings, engage in M&A, conduct tender offers, and participate in financial restructuring and asset sales.

What Is the Series 79 Top-Off Exam?

This exam is part of the licensing process for individuals aiming to sell investment banking products.

How Much Study Time Is Recommended?

Preparation time varies, but most candidates spend between 60 and 100 hours studying. Numerous prep courses and materials are available for purchase.

Is the Series 79 Exam Computer-Based?

Yes, the exam is administered on a computer.

When Can I Schedule the Series 79 Exam?

Candidates must schedule their exam within 120 days after enrollment.

What Is the Passing Score?

A score of 73% or higher is required to pass.

What Are the Retake Policies?

If you fail, you must wait 30 days before retaking the exam. After three consecutive failures, the waiting period extends to 180 days. Re-sponsorship by a member firm and payment of exam fees are required for retakes.

Conclusion

The Series 79 exam is a vital credential for financial professionals pursuing a career in investment banking. Passing this exam demonstrates mastery of key investment banking functions and enables licensed representatives to engage in complex financial transactions such as debt and equity offerings, mergers and acquisitions, and corporate restructurings. Staying informed about exam details, requirements, and preparation strategies is essential for success in this competitive field.

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