| Series 79 Exam Breakdown | ||
|---|---|---|
| Function | Number of Questions | Percentage of Exam |
| 1. Collection, Analysis, Data Evaluation | 37 | 49% |
| 2. Underwriting/New Financing, Types of Offerings, Securities Registration | 20 | 27% |
| 3. M&A, Tender Offers, Financial Restructuring | 18 | 24% |
Candidates have two and a half hours to complete the exam.
Series 79 Prerequisites
There are no prerequisites to take the Series 79 exam, although candidates must also pass the SIE exam as a corequisite. 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.
Series 79 Permitted Activities
As noted above, the Series 79 exam tests individuals on the knowledge and skills they need to work within the investment banking industry. Those who pass the Series 79 and become licensed can engage in the following activities:
- Debt and equity offerings, including private placements and public offerings
- Mergers and acquisitions
- Tender offers
- Financial restructurings
- Asset sales
- Divestitures or other corporate reorganizations
- Business combinations transactions
Series 79 Question Topics
There are a number of different prep courses and resources available for candidates who need some guidance before taking the Series 79 exam. The following is a list of topics covered by the exam.
Function 1
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 due diligence process.
Function 2
This function tests a candidate's knowledge on issues relating to underwriting and new financing, along with different types of offerings and securities registration. Test takers may have to answer questions about filing requirements, underwriting agreements, underwriting commitments, and specifics about financing deals (record registration, billing, and finalizing transactions).
Function 3
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 claims in the bankruptcy process.
Series 79 Exam Details
The exam is closed-book. Candidates are not allowed to bring in any reference materials with them when they take the test. It can be administered at a local test center or proctored online. Exam centers provide four-function calculators, scratch paper, pens, noise-canceling headphones, and tissues (if required). Those who choose the online option must go through an inspection and sign-on requirements. They are given an online calculator and virtual notepad to use during the exam.
FINRA makes accommodations for individuals who may require assistance, aids, or modifications, such as large print exam books and private testing rooms.
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 restructuring and asset sales, as well as corporate reorganizations.
What Is the Series 79 Top-Off Exam?
The Series 79 top-off exam tests individuals who want to become licensed to sell investment banking products. It is part of the process of earning a Series 79 license.
How Long Does It Take to Study for the Series 79 Exam?
The time it takes to study for the Series 79 exam depends on the individual. But it generally takes anywhere between 60 and 100 hours to prepare for the exam. Interested candidates can also purchase a series of prep materials for a cost.
Is the Series 79 Exam Computer-Based?
You must take the Series 79 exam on a computer, the same way you would with any other securities exam.
When Can I Take the Series 79 Exam?
You can take the exam within 120 days of the date on which you enroll. You must schedule an appointment from available dates within that 120-day period after you complete enrollment.
What Is the Passing Score for the Series 79 Exam?
You must get at least 73% if you want to pass the Series 79 exam.
How Long Do I Have to Wait to Retake the Series 79 Exam If I Fail?
You must wait 30 days before you can rewrite the Series 79 exam if you fail. The waiting period is extended to 180 days if you fail three times in a row. Your company must re-sponsor you before you sit down for any retakes. You are also responsible to pay the full fee for any subsequent attempts to write the exam.
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 number of areas, including debt offerings, asset sales, M&A, and restructuring activities.
