How To Prepare for the Series 79 Exam

To prepare for the Series 79 exam, individuals must commit 70 -80 hours to ensure comprehension and to develop a mastery of the material.  Creating  a study plan that includes reading the textbook, watching the corresponding video training and taking practice exams, is a must to prepare for the candidate for exam day. The series 79 exam is not to be taken lightly. You must make your exam preparation a top priority. Stick to your study schedule and stay on track. Losing momentum during the exam prep process can result in students having to go back and review the material they had already learned, causing delays. Our exam plan study calendar will create this schedule for students with the click of a button based on the days and hours students select to study. Each day assignments are scheduled to be completed students receive an email notifying them that they have tasks to complete that day. 

Yes, the Series 79 exam is a hard exam,  but with diligent preparation most students will successfully pass. Mastering the key math calculations and concepts will ensure you are able to work through the problems efficiently. Candidates who prepare thoroughly and have a strong understanding of these concepts are more likely to pass the exam and succeed in their careers as investment bankers. The Securities Institute is proud to offer you our best in class series 79 training package complete with our Greenlight money back pass guarantee.

The Purpose of the Series 79 Exam:

The primary purpose of the Series 79 exam is to assess the competency of individuals who want to work in the investment banking industry. The Series 79 exam, also known as the Investment Banking Representative Exam, is a licensing exam administered by the Financial Industry Regulatory Authority (FINRA) for professionals seeking to become an investment banking representative. The exam covers a wide range of topics related to investment banking, and it tests candidates on their knowledge of finance, accounting, securities regulations, and other key concepts. The Series 79 top off exam is required to be passed as the corequisite to the SIE exam. Students may take either exam first, but most opt to start with the SIE.  FINRA administers the exam to ensure prospective bankers have adequate knowledge of the primary functions to be performed. A minimum score of 73 percent is required to pass the exam and the exam must be completed within the time limit of 2 hours and 30 minutes.  Individuals who pass the Series 79 exam are considered competent to work in the investment banking industry and can apply for licensure with FINRA. It is important to note that passing the exam does not grant the student a license to practice as an investment banker. Only FINRA can grant it a license. 

In order to make the most of your series 79 exam preparation you must focus your attention on the critical knowledge areas presented in the exam outline.

The following is an overview of some of the top concepts that are tested on the Series 79 exam:

1. Capital Markets: Candidates should have a strong understanding of the capital markets, including how stocks, bonds, and other securities are traded, priced, and valued. They should also be familiar with the role of underwriters, market makers, and other key players in the capital markets.
2. Financial Statement Analysis: Candidates should be able to analyze financial statements, including balance sheets, income statements, and cash flow statements, to evaluate the financial health of a company. They should also be able to use financial ratios and other metrics to compare companies and make investment recommendations.
3. Valuation: Candidates should understand the various methods of valuing companies, including discounted cash flow analysis, comparable company analysis, and precedent transactions analysis. They should be able to use these methods to determine the fair value of a company or asset.
4. Mergers and Acquisitions: Candidates should be familiar with the process of mergers and acquisitions, including the different types of transactions, such as stock purchases, asset purchases, and mergers. They should also understand the legal and regulatory requirements for these transactions.
5. Securities Regulations: Candidates should have a strong understanding of the securities regulations, including the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. They should also be familiar with FINRA rules and regulations related to investment banking.
6. Corporate Finance: Candidates should have a basic understanding of corporate finance, including the different types of financing available to companies, such as debt and equity financing. They should also be familiar with financial modeling, including how to build and analyze financial models.
7. Debt and Equity Securities: Candidates should understand the different types of debt and equity securities, including common stock, preferred stock, bonds, and convertible securities. They should also be familiar with the risks and benefits of these securities.
8. Financial Markets and Instruments: Candidates should be familiar with the different financial markets and instruments, including the money market, the bond market, the stock market, and derivatives such as options and futures.
9. Investment Banking Activities: Candidates should understand the various activities that investment banks engage in, including underwriting, financial advisory services, and trading.
10. Ethics and Professional Responsibility: Candidates should be familiar with ethical and professional responsibilities of investment bankers, including their duty to act in the best interests of their clients, to avoid conflicts of interest, and to maintain confidentiality.

Of the topics listed above it is important to focus your exam preparation on the most challenging topics. For most students these areas are Financial Statement Analysis, Valuation and Corporate FInancing. These areas will have most of your math calculations. Watch a sample of our series 79 video class to help you understand some of these areas. 

Good Luck on your Exam ! 

The Securities Institute of America, Inc.