Free Series 79 Practice Exam
Series 79 Investment Banking Representative practice exam covering M&A analysis, underwriting, due diligence, and research reports. No signup required.
Practice by Series 79 Domain
Target a specific area, or launch the full exam below
Collection, Analysis & Preparation
Financial analysis, valuation methodologies (DCF, comps, precedent transactions), and preparation of pitch books and offering documents. ~25% of Series 79.
Due Diligence, Facilitation & Closing
M&A transaction due diligence, deal structuring, negotiations, and closing procedures. ~30% of Series 79 — largest section.
Underwriting & New Financing Transactions
IPOs, follow-on offerings, debt underwriting, Rule 144A private placements, and syndication. ~20% of Series 79.
Research & Research Reports
Research report preparation, analyst regulations (Global Settlement), quiet periods, and communication rules. ~25% of Series 79.
Full Series 79 Practice Exam
All four sections mixed and weighted by the official FINRA Series 79 blueprint. 75 questions, 150 minutes.
About the Series 79 Exam
The Series 79 Investment Banking Representative exam qualifies registered representatives to engage in investment banking activities — specifically advising on or facilitating mergers and acquisitions, restructurings, tender offers, business combinations, private placements, and related capital raising transactions. It replaced the broader Series 7 as the required qualification for investment banking professionals whose work is limited to these activities. Firm sponsorship and the SIE are prerequisites.
The exam contains 75 scored questions (85 total with 10 unscored) with a 2-hour 30-minute time limit and a 70% passing score. The Series 79 is one of the more challenging FINRA top-off exams due to the technical depth of M&A and restructuring content — including valuation methodologies, deal structuring, and regulatory frameworks governing investment banking transactions.
Series 79 Exam Topic Breakdown
| Topic | Weight | Key Areas |
|---|---|---|
| Collection, Analysis, and Valuation of Data | 45% | DCF, comparable company analysis, precedent transactions, LBO modeling, credit analysis |
| Underwriting / New Financing Transactions | 15% | IPO process, Rule 144A, Reg D, equity and debt offerings, fairness opinions |
| M&A, Tender Offers, and Financial Restructurings | 35% | Deal structures, due diligence, Hart-Scott-Rodino, Schedule TO, proxy rules |
| General Securities Industry Regulations | 5% | FINRA rules applicable to IB reps, Reg M, quiet period rules |
Sample Series 79 Exam Questions
1. A company has EBITDA of $50M and comparable transactions have been completed at EV/EBITDA multiples of 8x–10x. The estimated enterprise value range for the company is:
2. Under Hart-Scott-Rodino (HSR) Act pre-merger notification rules, parties to a transaction must notify the DOJ and FTC and observe a waiting period before closing if the transaction meets certain size-of-transaction thresholds. The initial HSR waiting period is:
3. In a leveraged buyout (LBO), the primary source of return for the financial sponsor (private equity buyer) is:
Study Tips for the Series 79 Exam
Collection, Analysis, and Valuation of Data (45% of the exam) is the most math-intensive section. Master all standard valuation methodologies: DCF (discounted cash flow — unlevered free cash flow discounted at WACC), comparable company analysis (trading multiples applied to current financials), precedent transaction analysis (deal multiples from historical M&A), and LBO analysis (IRR-driven returns). Know how to move between enterprise value and equity value (subtract net debt), and understand when each methodology is most appropriate.
The M&A and tender offer section (35%) covers the regulatory mechanics of deals — know Schedule TO (tender offer filings), Schedule 14D-9 (target board recommendation), Hart-Scott-Rodino pre-merger notification thresholds, Reg M (anti-manipulation during distributions), and the SEC's Regulation 14A (proxy rules). The Series 79 is one of the most technically demanding FINRA top-off exams — plan for 80–120 hours of study. Kaplan and STC are popular prep providers.
Working exclusively in private placements? See the Series 82. Principal registration is covered by the Series 24.
Frequently Asked Questions — Series 79 Exam
What does the Series 79 license authorize?
The Series 79 qualifies registered representatives to engage in investment banking activities — advising on and facilitating M&A transactions, tender offers, business combinations, restructurings, private placements (Reg D and Rule 144A), and related capital markets activities. It does not authorize general securities sales (which requires the Series 7).
What is the difference between the Series 79 and Series 7?
The Series 7 is a broader license that covers general securities sales — equities, fixed income, options, mutual funds, and investment banking. The Series 79 is a limited license specifically for investment banking activities. Many investment banking professionals hold only the Series 79 (plus SIE) since they don't engage in general securities sales.
What valuation methods are tested on the Series 79?
The four primary valuation methodologies tested are: (1) DCF — discounting projected unlevered free cash flows at WACC; (2) comparable company analysis (public comps) — applying trading multiples (EV/EBITDA, P/E) from similar public companies; (3) precedent transactions (deal comps) — applying M&A deal multiples; and (4) LBO analysis — modeling the private equity buyer's IRR and entry/exit multiple assumptions.
What is the Hart-Scott-Rodino Act?
The Hart-Scott-Rodino (HSR) Antitrust Improvements Act requires parties to large mergers and acquisitions to file pre-merger notification with the DOJ and FTC and observe a waiting period before closing. The size-of-transaction and size-of-person thresholds determine whether a filing is required. The initial waiting period is 30 days (15 days for cash tender offers). A Second Request can extend the review period significantly.
What is a fairness opinion and when is it used?
A fairness opinion is a letter from an investment bank expressing an opinion that the financial terms of a proposed transaction (typically an acquisition) are fair from a financial point of view to the relevant shareholders. Boards of directors typically obtain fairness opinions when approving mergers, acquisitions, or other significant transactions to support their fiduciary duty of care and reduce litigation risk. The Series 79 tests the advisor's role in providing fairness opinions.
What is Rule 144A?
SEC Rule 144A allows the resale of privately placed securities to Qualified Institutional Buyers (QIBs) — institutions with at least $100 million in investable securities under management. Rule 144A placements allow companies to raise capital faster and with less disclosure than a registered public offering, while providing a liquid secondary market among QIBs. Many high-yield bonds and leveraged loans are issued under Rule 144A.
What is Regulation M?
Regulation M is an SEC rule designed to prevent manipulative trading activities during securities distributions (offerings). It restricts distribution participants — including underwriters, issuers, and selling shareholders — from bidding for or purchasing the securities being distributed during the restricted period. The goal is to prevent artificial price support that could mislead investors about the security's market value.