The Series 79 is the investment banking license, and it's the standard one for investment banking analysts and associates. Passing it qualifies you to advise on and work on debt and equity offerings, mergers and acquisitions, tender offers and financial restructurings. The exam is 75 scored questions in 2.5 hours, you need 55 right (73%) to pass, and FINRA's registration fee is $395 (2026). FINRA doesn't publish a Series 79 pass rate.

The formal name is the Investment Banking Representative Qualification Examination. It's a computer-based multiple-choice exam with 5 unscored pretest questions mixed in, so you'll see 80 on screen in the 150 minutes.

How it differs from the Series 7

Both are FINRA representative licenses, but they fit different jobs. The Series 7 is built for retail brokers who recommend and trade a broad range of products for clients (the Series 7 overview has the details). The Series 79 covers the banking job instead: capital raising, valuation, due diligence and deal advisory. A banker raising capital doesn't need to be licensed to sell options to retail customers, so if you're starting as an investment banking analyst or associate, your firm will almost always register you for the 79, not the 7.

Typical candidates are first-year analysts, associates, and people moving into capital markets, M&A or restructuring groups. Like the other representative exams, it needs a FINRA member firm to sponsor you by filing a Form U4, so you take it after a bank hires you, usually in your first months on the desk. The SIE is a corequisite. A lot of candidates pass it while still in school or recruiting, since it doesn't need a sponsor, then take the 79 once they start. The SIE overview covers that exam, and FreeFellow's free SIE practice questions cover it too.

What's tested

FINRA organizes the Series 79 around the banking workflow, in three functions. The first is collection, analysis and evaluation of data, which covers financial statements, financial modeling and valuation (DCF, comparable companies, precedent transactions) and due diligence. The second is underwriting and new financings for debt and equity offerings, which covers the registration process, types of offerings, how the syndicate works, and the rules around raising capital. The third is mergers, acquisitions, tender offers and financial restructuring, meaning deal structures, fairness opinions, tender offer rules, restructuring and reorganization.

Most of the difficulty is in the analytical part, which is also the part closest to the job. Know how discounted cash flow, comparable company and precedent transaction analysis work and when each one fits, plus accretion/dilution. The exam assumes you're fluent in the three financial statements and how they link, and in the adjustments and normalizations that feed a model. On the offering side, know IPOs, follow-ons and debt issues, the syndicate's role and the communications rules during an offering. For M&A, know asset versus stock deals and mergers versus tender offers.

Candidates from a pure modeling background often underprepare on the regulatory and offering-process material. The registration and tender offer rules carry real weight, so treat the 79 as a rules exam as much as a finance exam.

Preparing for it

Most candidates study 80 to 120 hours, often squeezed into their first weeks on the desk. The exam has a reputation as demanding because it tests whether you can do the modeling, valuation and accounting and apply the deal rules, rather than whether you can recall definitions. So the most useful prep is working scenario questions on valuation and on the offering and M&A rules instead of rereading notes. Since FINRA doesn't publish a pass rate, any Series 79 pass rate you see is an estimate.

The $395 fee is usually paid by the sponsoring firm, which files your Form U4. If you fail, you can retake after 30 days, or after 180 days once you've failed three times.

FreeFellow has more than 1,100 free Series 79 practice questions across every FINRA function area, each with a step-by-step solution, and the full bank is free with an account. The free diagnostic is 12 questions with no signup and will point you to your weakest area. The Series 79 practice page has sample questions by topic, and the formula sheet is worth keeping open for the valuation math.

FreeFellow is not affiliated with, sponsored by, or endorsed by FINRA. The Series 79 and SIE exams are administered by FINRA.