Series 79 study guide
Series 79 · Work through your exam, one topic at a time.
The Series 79 - the Investment Banking Representative Exam - is a FINRA qualification exam that assesses the competency of an entry-level registered representative to perform the job of an investment banking representative. It measures the knowledge needed to carry out the critical functions of the role, including advising on or facilitating debt or equity securities offerings through a private placement or a public offering, and mergers and acquisitions. Candidates must be associated with and sponsored by a FINRA member firm, or another applicable self-regulatory organization member firm, to be eligible. The SIE is a corequisite: you must pass both the SIE and the Series 79 to obtain the Investment Banking Representative registration. Topics on this exam: Collection, Analysis, and Evaluation of Data, Underwriting/New Financing Transaction, Types of Offerings and Registration of Securities, and Mergers and Acquisitions, Tender Offers and Financial Restructuring Transaction. The Series 79 study guide has 3 sections and about 1,676 words.
01Collection, Analysis, and Evaluation of Data
Investment banking analysis starts with clean data: audited financials, SEC filings, proxy statements, industry reports, and management projections. Candidates must know how to normalize earnings, calendarize comparables to a common fiscal year-end, and distinguish recurring from non-recurring items.
320 words, about 2 min02Underwriting/New Financing Transaction, Types of Offerings and Registration of Securities
A financing mandate begins with an engagement letter and proceeds through due diligence, drafting of the registration statement, roadshow, pricing, allocation, and settlement. Candidates must understand the underwriting agreement, the syndicate structure, and the economics of the gross spread.
679 words, about 3 min03Mergers and Acquisitions, Tender Offers and Financial Restructuring Transaction
M&A questions test the choice among statutory mergers, stock purchases, and asset purchases, and among cash, stock, and mixed consideration. Stock deals require an exchange ratio: offer price per target share divided by the acquirer’s share price.
677 words, about 3 min