Investment Banking Series Exams Preparation Guide

To prepare for the investment banking series exams, you'll want to focus on building a strong foundation in finance and accounting concepts. The exams are designed to test your knowledge of financial modeling, mergers and acquisitions, and corporate finance.

You'll need to familiarize yourself with key financial concepts such as the time value of money, present value, and discounted cash flow. Understanding how to calculate these values accurately will be essential for success on the exams.

The exams also cover financial statement analysis, so make sure you can identify and interpret key financial ratios and metrics. Practice using these metrics to analyze case studies and make informed investment decisions.

To get started, review the basics of financial accounting, including the accounting equation and the balance sheet.

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The Series 79 exam is a comprehensive test that covers a wide range of topics related to investment banking. The exam is divided into three major job functions.

The first major job function, Collection, Analysis, and Evaluation of Data, accounts for 37 exam items. This function involves analyzing financial data and evaluating the risks associated with different investment opportunities.

The second major job function, Underwriting/New Financing Transaction, Types of Offerings and Registration of Securities, covers 20 exam items. This function requires a deep understanding of the different types of securities offerings and the registration process.

The third major job function, Mergers and Acquisitions, Tender Offers and Financial Restructuring Transaction, accounts for 18 exam items. This function involves analyzing the financial implications of mergers and acquisitions, as well as the process of tender offers and financial restructuring.

Here is a breakdown of the exam content by major job function:

The exam content is designed to test a candidate's knowledge and skills in these three major job functions.

The Series 79 exam has undergone significant changes since October 1, 2018. It's now a 2-hour 30-minute long exam with 75 multiple choice questions.

You'll need to be sponsored by an employer to take the Series 79 exam.

The exam is significantly shorter than its pre-2018 version, which was a 5-hour long exam with 175 multiple choice questions.

Investment bankers need to be knowledgeable in various areas, including debt and equity offerings. This involves understanding the difference between a debt and equity offering, where a debt offering is typically a coupon or corporate bond, while an equity offering involves issuing new shares of corporate stock.

A debt or equity offering can be quite complex, with activities such as pricing of securities, origination, underwriting, marketing, structuring, syndication, and managing allocation and stabilization activities. These activities may require a Series 79 exam.

Some of the key activities that may require a Series 79 exam include:

In addition to debt and equity offerings, investment bankers also work on mergers and acquisitions (M&A) and restructuring. M&A refers to the consolidation of companies or assets, and may involve activities such as tender offers, selling assets, corporate reorganization or divestitures, and transactions involving business combinations.

As an investment banker, it's essential to understand the registration requirements to avoid any regulatory issues. You may register by passing the SIE and passing either the Series 79 exam or the Series 82 exam.

If you're already registered as an Investment Banking Representative (Series 79), you may need additional registrations depending on your activities. Engaging in road show activities and direct selling efforts related to a debt or equities securities offering requires registration as a General Securities Representative (SIE + Series 7 exam) or Private Securities Offerings Representative (SIE + Series 82 exam).

As a General Securities Representative (Series 7), you're already covered if you only sell the offering or actively market it to investors or potential investors. However, if you also want to prepare a marketing plan or advise on a marketing plan prepared by a sales team, you'll need to register as an Investment Banking Representative by passing the Series 79 exam.

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Investment banking is a critical aspect of the financial industry, and it's essential to understand the various activities and roles involved. The Series 79 exam covers topics related to investment banking, including mergers and acquisitions, restructuring, and debt or equity offerings.

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To become an investment banker, you'll need to pass the Series 79 exam, which requires a sponsoring FINRA member. The exam is a multiple-choice test with 75 questions and takes 150 minutes to complete. A passing grade is 73% and above.

Investment bankers advise on or facilitate debt or equity securities offerings, including marketing and structuring. However, if you're actively marketing an offering and interacting with investors, you'll need additional registrations, such as a General Securities Representative (SIE + Series 7 exam) or Private Securities Offerings Representative (SIE + Series 82 exam).

Some responsibilities of investment bankers include pricing securities, originating equity capital markets and debt capital markets, underwriting, marketing, structuring, syndication, and managing allocation and stabilization activities.

Here's a breakdown of the exam's content related to investment banking:

Note that the exam content is divided into three levels, and the percentages represent the weightage of each topic.

Underwriting and securities registration are crucial steps in the investment banking process. This section of the test covers 27% of the material and has 20 questions.

The focus is on regulations for filing and registering securities, including forms like the prospectus. The prospectus is a detailed document that outlines the terms of a securities offering.

Rules and required financial statements are also key components of this section. These financial statements provide a snapshot of a company's financial health and stability.

The prospectus is typically 20-30 pages long and is used to raise capital from investors. It's a critical document that must be filed with regulatory bodies.

Regulatory bodies, such as the Securities and Exchange Commission (SEC), oversee the filing and registration process to ensure compliance with securities laws.

Mastering financial modeling is crucial for investment bankers, and it's not just about crunching numbers. The same training program used at top investment banks is available to anyone who enrolls in The Premium Package.

This comprehensive program covers everything you need to master financial and valuation modeling, including 3-Statement Modeling, DCF, Comps, M&A, and LBO. It's a game-changer for anyone looking to break into the industry.

To get started, you'll need to learn how to create a 3-Statement Model, which involves analyzing a company's income statement, balance sheet, and cash flow statement. This will help you understand a company's financial health and make informed investment decisions.

A Discounted Cash Flow (DCF) model is another essential tool for financial modeling. It helps you estimate a company's intrinsic value by forecasting its future cash flows and discounting them back to their present value.

Mergers and Acquisitions (M&A) and Leveraged Buyouts (LBO) are also critical components of financial modeling. These transactions require a deep understanding of a company's financials and the ability to model complex scenarios.

By mastering these skills, you'll be well on your way to becoming a top-notch investment banker.

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The Series 79 exam is a specialized test that satisfies the Series 24 prerequisite as a representative exam. It's a key requirement for investment banking professionals who want to work in areas like debt, equity, or mergers and acquisitions (M&A).

To pass the Series 79 exam, test-takers generally need to have the Series 79 registration, even if they already have the Series 7. This is one of the only cases where the Series 79 can be used as a prerequisite instead of the Series 7.

Here are some key activities that someone who passes the Series 79 exam is permitted to engage in:

If you're looking to pass the Series 79 exam, you'll need to use third-party materials, which your employer will provide or you'll need to seek out on your own.

Most employers will provide study materials, which can include self-study programs with videos, printed materials, practice exams, and question banks.

These study materials can cost anywhere from $300 to $500, depending on the provider and the features included.

Some popular Series 79 exam prep providers include Kaplan, Knopman, STC (Securities Training Corporation), and Solomon Exam Prep.

Here's a breakdown of the self-study costs for these providers:

Note that these costs are subject to change after October 1, 2018, and some providers may offer in-person training options for an additional fee.

The Series 79 exam is a key prerequisite for investment banking professionals, and it's worth noting that passing the Series 79 exam satisfies the Series 24 prerequisite as a representative exam.

If you've already passed the Series 7 exam, you may still need to register for the Series 79 exam, as it's often required for work in key areas such as debt, equity, or mergers and acquisitions.

The Series 79 exam is a specialized exam that focuses on investment banking, and it's limited to investment banking supervisory responsibilities if the candidate has only passed the Series 79 exam.

You'll need to pay a one-time enrollment fee of USD 350 when you first enroll for the Series 79 exam, but this fee is not charged for subsequent exam retakes.

To find out more about where you can take your Series 79 exam, you can view the available test center locations.

Exceptions can be a bit of a gray area, but it's good to know that Series 79 registration may not be required for professionals who have limited involvement in investment banking activities.

Some jobs may qualify for a six-month grace period while new associates are training and rotating through various business areas and departments.

This is a common practice in financial institutions, and it's a great opportunity for professionals to gain experience and knowledge in different areas of the business.

For a complete guide to exemptions, you should look at FINRA Rule 1230, which provides more information on the specific requirements and exceptions.

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