FINRA Series 79 - Investment Banking Representative Practice Test

The Series 79 license is required for individuals whose primary job function involves: (1) advising on or facilitating debt or equity offerings, including private placements and public offerings; (2) advising on or facilitating mergers and acquisitions, tender offers, financial restructurings, asset sales, or divestitures; and (3) engaging in the structuring, pricing, or marketing of such transactions. It is specifically for investment banking activity as defined by FINRA, distinct from general securities sales.

The Series 7 is a broader qualification allowing for the solicitation, purchase, and sale of all types of securities products for retail and institutional clients. The Series 79 is a specialized, limited-purpose exam focused exclusively on the technical and regulatory aspects of investment banking activities, such as underwriting and M&A advisory. Many firms now require the Series 79 (plus the SIE and Series 63) for investment banking roles instead of the Series 7, as it provides targeted knowledge without covering retail sales topics.

The Series 79 exam consists of 75 multiple-choice questions, plus 10 additional unscored pretest questions, to be completed in 2 hours and 30 minutes. The passing score is 73%. The questions are weighted across four major functional areas: (1) Collection, Analysis, and Evaluation of Data; (2) Underwriting/New Financing Transactions, Types of Offerings, and Registration of Securities; (3) Mergers and Acquisitions, Tender Offers, and Financial Restructuring Transactions; and (4) General Securities Industry Regulations.

There are no formal prerequisite exams, but candidates must be sponsored by a FINRA-member firm or other applicable self-regulatory organization (SRO) member to sit for the Series 79. Most candidates first pass the Securities Industry Essentials (SIE) exam, which covers foundational industry knowledge. The SIE is not a prerequisite but is almost always required in conjunction with the Series 79 for full registration. Many firms also require the Series 63 (Uniform Securities Agent State Law Exam) after passing the Series 79.

Preparation time varies based on prior experience and education in finance, but most successful candidates dedicate between 100 and 150 hours of study over 4 to 8 weeks. This involves a structured program using professional study manuals, video lectures, and extensive practice questions and simulated exams. Consistent, focused study is crucial due to the volume of technical material on valuation, accounting, regulation, and transaction processes.