A balance sheet shows total liabilities of $600 million and shareholders' equity of $400 million. What is the debt-to-equity ratio as the SEC's guide computes it?SEC, Beginners' Guide to Financial Statements, Financial Statement Ratios and Calculations. Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (leverage: debt-to-equity).
A company has an enterprise value of $2,400 million and EBITDA of $300 million. What is its EV/EBITDA multiple?Arithmetic on the figures in the question. Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (valuation: EV/EBITDA).
A company reports income from operations of $45 million on net revenues of $300 million. What is its operating margin?SEC, Beginners' Guide to Financial Statements, Financial Statement Ratios and Calculations. Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (profitability: operating margin).
A filing with the SEC presents EBITDA, a non-GAAP measure. Under Item 10(e) of Regulation S-K, what must the filing also present with equal or greater prominence?SEC Regulation S-K, 17 CFR 229.10(e), Item 10(e)(1)(i). Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (profitability: EBITDA and other adjusted measures).
Show all 49 questions (45 more)
Collection, analysis and evaluation of data, continued
A firm was an underwriter in an initial public offering. Under FINRA Rule 2241, its policies must bar it from publishing research on the issuer for at least how long after the offering date?FINRA Rule 2241, Research Analysts and Research Reports, paragraph (b)(2)(I). Outline: FINRA Series 79 Content Outline (2025), Function 1.1, Collection of Data (FINRA Rule 2241).
A person acquires beneficial ownership of more than five percent of a class of registered voting equity. Under Rule 13d-1(a), when is the Schedule 13D due?SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 13d-1(a). Outline: FINRA Series 79 Content Outline (2025), Function 1.1, Collection of Data (Exchange Act schedules).
A stock sells at $36 a share and the company earns $2.40 a share. What is its P/E ratio?SEC, Beginners' Guide to Financial Statements, Financial Statement Ratios and Calculations. Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (valuation: P/E multiple).
An analyst divides current assets of $240 million by current liabilities of $160 million to get the current ratio. What is the result?Arithmetic on the figures in the question. Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (liquidity: current ratio).
An analyst measures interest coverage as EBIT divided by interest expense. EBIT is $120 million and interest expense is $30 million. What is the coverage?Arithmetic on the figures in the question. Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (leverage: interest coverage).
An analyst takes enterprise value as equity market value plus total debt minus cash. A company has 50 million shares at $20, debt of $400 million and cash of $100 million. What is the enterprise value?Arithmetic on the figures in the question. Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (valuation: enterprise value).
An issuer's officer discloses material nonpublic information to an analyst without meaning to. Under Regulation FD, the issuer must make the information public:SEC Regulation FD, 17 CFR 243.100 and 243.101. Outline: FINRA Series 79 Content Outline (2025), Function 1.1, Collection of Data (Regulation FD).
By the SEC's guide to financial statements, a debt-to-equity ratio of 2 to 1 means the company has:SEC, Beginners' Guide to Financial Statements, Financial Statement Ratios and Calculations. Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (liquidity and leverage: debt-to-equity).
Cost of sales for the year is $900 million. Inventory was $250 million at the end of the prior year and $350 million at the end of this one. What is the inventory turnover ratio?SEC, Beginners' Guide to Financial Statements, Financial Statement Ratios and Calculations. Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (liquidity: inventory turnover).
Current assets are $180 million and current liabilities are $110 million. What is working capital?SEC, Beginners' Guide to Financial Statements, Financial Statement Ratios and Calculations. Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (liquidity: working capital).
For which periods must a reporting company file Form 10-Q?Investor.gov (SEC), Form 10-Q. Outline: FINRA Series 79 Content Outline (2025), Function 1.1, Collection of Data (Exchange Act reports).
How long does a company generally have to file a Form 8-K after an event that triggers the filing requirement?Investor.gov (SEC), Form 8-K. Outline: FINRA Series 79 Content Outline (2025), Function 1.1, Collection of Data (Rule 13a-11, current reports on Form 8-K).
Net income is $40 million after interest expense of $10 million, taxes of $15 million, and depreciation and amortization of $25 million. What is EBITDA?SEC Regulation S-K, 17 CFR 229.10(e), Item 10(e). Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (profitability: EBIT and EBITDA).
Revenue grew from $100 million to $121 million over two years. What is the compound annual growth rate?Arithmetic on the figures in the question. Outline: FINRA Series 79 Content Outline (2025), Function 1.2, Analysis and Evaluation of Data (valuation: compound annual growth rate).
Rule 10b-5 makes it unlawful, in connection with the purchase or sale of any security, to make an untrue statement of a material fact or to:SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 10b-5. Outline: FINRA Series 79 Content Outline (2025), Function 1.3, Due Diligence Activities (the disclosure standard).
Under Exchange Act Rule 13a-14, who must sign the certifications filed as exhibits to a Form 10-K?SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 13a-14. Outline: FINRA Series 79 Content Outline (2025), Function 1.3, Due Diligence Activities (Sarbanes-Oxley disclosure requirements).
Under FINRA Rule 2241, who may NOT review or approve a research report before it is published?FINRA Rule 2241, Research Analysts and Research Reports, paragraph (b)(2)(A). Outline: FINRA Series 79 Content Outline (2025), Function 1.1, Collection of Data (communication with the research department).
Under Rule 176, which circumstance bears on whether an underwriter made a reasonable investigation for purposes of Section 11?SEC rules under the Securities Act of 1933, 17 CFR Part 230, Rule 176. Outline: FINRA Series 79 Content Outline (2025), Function 1.3, Due Diligence Activities (reasonable grounds for belief under Section 11).
Which activity must a firm's policies prohibit for its research analysts under FINRA Rule 2241?FINRA Rule 2241, Research Analysts and Research Reports, paragraph (b)(2)(L). Outline: FINRA Series 79 Content Outline (2025), Function 1.1, Collection of Data (communication with the research department).
Which SEC filing gives a comprehensive overview of a company's business and financial condition and includes audited financial statements?Investor.gov (SEC), Form 10-K. Outline: FINRA Series 79 Content Outline (2025), Function 1.1, Collection of Data (Exchange Act reports).
Underwriting, offerings and registration 13
A fund sold short a stock three business days before a registered follow-on offering of that stock was priced. Under Rule 105 of Regulation M, the fund generally may not:SEC Regulation M, 17 CFR 242.105, Rule 105. Outline: FINRA Series 79 Content Outline (2025), Function 2.2, Activities of the Underwriting Syndicate (Regulation M).
A registration statement becomes effective under Rule 430A without the offering price. If no prospectus with the price is filed within what period must a post-effective amendment supply it?SEC rules under the Securities Act of 1933, 17 CFR Part 230, Rule 430A(a)(3). Outline: FINRA Series 79 Content Outline (2025), Function 2.1, Public Offerings (Rule 430A).
FINRA Rule 5130 generally bars a member from selling a new issue to:FINRA Rule 5130, Restrictions on the Purchase and Sale of Initial Equity Public Offerings, paragraph (a)(1). Outline: FINRA Series 79 Content Outline (2025), Function 2.3, Execution and Distribution (new issue allocations).
In an offering by an issuer that was not an Exchange Act reporting company, a broker-dealer must deliver a preliminary prospectus to anyone expected to receive a confirmation of sale at least:SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 15c2-8(b). Outline: FINRA Series 79 Content Outline (2025), Function 2.3, Execution and Distribution (distribution of the preliminary prospectus).
In an offering under Rule 506(b), how many purchasers who are not accredited investors may buy in any 90-calendar-day period?SEC rules under the Securities Act of 1933, 17 CFR Part 230, Rule 506(b)(2)(i). Outline: FINRA Series 79 Content Outline (2025), Function 2.6, Transactions Exempt from Registration (Regulation D).
One way an issuer qualifies as a well-known seasoned issuer is a worldwide market value of common equity held by non-affiliates of at least:SEC rules under the Securities Act of 1933, 17 CFR Part 230, Rule 405. Outline: FINRA Series 79 Content Outline (2025), Function 2.1, Public Offerings (well-known seasoned issuers).
Restricted securities were bought from an issuer that has been an Exchange Act reporting company for at least 90 days. How long must they be held before resale under Rule 144?SEC rules under the Securities Act of 1933, 17 CFR Part 230, Rule 144(d)(1)(i). Outline: FINRA Series 79 Content Outline (2025), Function 2.6, Transactions Exempt from Registration (Rule 144).
Rule 163A treats an issuer's communication as outside Section 5(c) if it does not reference the offering and is made more than how long before the registration statement is filed?SEC rules under the Securities Act of 1933, 17 CFR Part 230, Rule 163A. Outline: FINRA Series 79 Content Outline (2025), Function 2.1, Public Offerings (communications before a registration statement is filed).
To be a qualified institutional buyer under Rule 144A, an insurance company must own and invest on a discretionary basis at least how much in securities of unaffiliated issuers?SEC rules under the Securities Act of 1933, 17 CFR Part 230, Rule 144A(a)(1). Outline: FINRA Series 79 Content Outline (2025), Function 2.6, Transactions Exempt from Registration (Rule 144A, qualified institutional buyers).
Under FINRA Rule 5131, how far ahead of releasing or waiving a lock-up on an issuer's officers and directors must the book-running lead manager notify the issuer and announce the release?FINRA Rule 5131, New Issue Allocations and Distributions, paragraph (d)(2). Outline: FINRA Series 79 Content Outline (2025), Function 2.2, Activities of the Underwriting Syndicate (issuer and shareholder lock-up agreements).
Under Rule 415, securities registered on a shelf for a delayed or continuous offering may generally be offered and sold only if no more than how long has passed since the initial effective date?SEC rules under the Securities Act of 1933, 17 CFR Part 230, Rule 415(a)(5). Outline: FINRA Series 79 Content Outline (2025), Function 2.1, Public Offerings (shelf registration).
Which natural person is an accredited investor under Rule 501(a)?SEC rules under the Securities Act of 1933, 17 CFR Part 230, Rule 501(a)(5) and (6). Outline: FINRA Series 79 Content Outline (2025), Function 2.6, Transactions Exempt from Registration (Regulation D, accredited investors).
Which of these is a free writing prospectus under Rule 405?SEC rules under the Securities Act of 1933, 17 CFR Part 230, Rule 405. Outline: FINRA Series 79 Content Outline (2025), Function 2.1, Public Offerings (free writing prospectuses).
Mergers, tender offers and restructuring 12
A bidder raises the price offered in a tender offer. Under Rule 14e-1, for how long after notice of the increase must the offer stay open?SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 14e-1(b). Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (tender offers).
A Rule 13e-3 "going private" transaction is one by an issuer or its affiliate that is likely or meant to cause a class of the issuer's equity to:SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 13e-3(a)(3). Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (going private transactions).
A target's shareholders are asked to vote on a merger in which they will receive the acquirer's stock. Under Rule 145, submitting that plan for their vote is treated as:SEC rules under the Securities Act of 1933, 17 CFR Part 230, Rule 145(a). Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (Rule 145, transactions requiring approval of security holders).
A tender offer is withdrawn. Under Rule 14e-1, what must the bidder do with securities already deposited?SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 14e-1(c). Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (tender offers).
After a complete Hart-Scott-Rodino premerger filing, how long must the parties to a cash tender offer wait before closing, unless the agencies end the period early?Federal Trade Commission, Premerger Notification and the Merger Review Process, Steps for the Merger Review Process. Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (Hart-Scott-Rodino premerger notification).
After a tender offer is first published, how long does the target company have to give its security holders a statement of its position on the offer?SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 14e-2(a). Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (tender offers).
In a Chapter 11 case, how long does the debtor (other than a small business debtor) at first have the exclusive right to file a plan of reorganization?United States Courts, Chapter 11 Bankruptcy Basics, Who Can File a Plan. Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (financial restructuring: bankruptcy).
To stay within the Rule 10b-18 safe harbor, an issuer's repurchases on a single day, block purchases aside, must not exceed what share of the security's average daily trading volume?SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 10b-18(b)(4). Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (share repurchase programs).
Under FINRA Rule 5150, a fairness opinion that will be given to public shareholders must disclose whether the member advised a party to the deal and will receive compensation that is:FINRA Rule 5150, Fairness Opinions, paragraph (a)(1). Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (fairness opinions).
Under Rule 14d-7, when may a holder withdraw securities tendered in a third-party tender offer?SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 14d-7(a)(1). Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (tender offers).
Under Rule 14d-10, the consideration paid to any security holder for securities tendered in a tender offer must be:SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 14d-10(a)(2). Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (tender offers).
Under Rule 14e-1, what is the shortest time a tender offer may be held open from the date it is first published or sent to security holders?SEC rules under the Securities Exchange Act of 1934, 17 CFR Part 240, Rule 14e-1(a). Outline: FINRA Series 79 Content Outline (2025), Function 3, Mergers and Acquisitions, Tender Offers and Financial Restructuring (tender offers).
How this list was compiled: Our own questions, written to the three functions of the Series 79 Content Outline that FINRA publishes (https://www.finra.org/sites/default/files/2025-10/Series_79_Content_Outline.pdf, read 2026-10-09): Function 1, collection, analysis and evaluation of data, 37 of 75 scored items (49%); Function 2, underwriting and new financing transactions, types of offerings and registration of securities, 20 (27%); Function 3, mergers and acquisitions, tender offers and financial restructuring transactions, 18 (24%). The bank holds 24, 13 and 12. Every fact was read on 2026-10-09 in the public text the question names: SEC rules on ecfr.gov (17 CFR Parts 229, 230, 240, 242 and 243), FINRA Rules 2241, 5130, 5131 and 5150 on finra.org, the SEC's Beginners' Guide to Financial Statements and Investor.gov glossary, the Federal Trade Commission's premerger notification page and the United States Courts' Chapter 11 page. Licence: Questions, choices and explanations are original work of this site.
How it works
This Series 79 practice test asks 49 questions of our own on the three job functions in FINRA's content outline for the Investment Banking Representative exam. Unofficial: not affiliated with, endorsed by or sponsored by FINRA.
Read the full guide
Three functions, in FINRA's shares
FINRA's outline gives 75 scored questions: 37 on collecting, analyzing and evaluating data, 20 on underwriting, offerings and registration, and 18 on mergers, tender offers and restructuring. This bank holds 24, 13 and 12, the same shares.
Rules by number
Answers cite the rule itself: Securities Act Rules 144, 144A, 415 and 430A, Regulation D, Regulation M, the tender offer rules under 14d and 14e, and FINRA Rules 2241, 5130 and 5131. Ratio questions state their formula.
A timed run
Exam mode draws 40 questions with 80 minutes on the clock, the real pace of 75 in two and a half hours.
Learn the tender offer clock: 20 business days open, 10 more after a price change, 10 for the target's response.
Questions and answers
Is the Series 79 a top-off exam?
It is taken with the SIE. FINRA lists the Securities Industry Essentials exam as the corequisite, and a candidate must pass both to register as an Investment Banking Representative. This Series 79 top-off practice test covers the Series 79 only.
Is there a free Series 79 study guide?
FINRA publishes the Series 79 Content Outline as a free PDF. It lists each function and task and the number of questions on each function. Every answer on this page names its place in that outline and the rule to read.
How many questions are on the Series 79 exam?
80 in two hours and 30 minutes: 75 scored questions and 5 unidentified pretest questions that do not count. Each has four answer choices, and there is no penalty for guessing.
What is the passing score for the Series 79?
FINRA gives the passing score as 73. Scores are placed on a common scale by equating, so that every candidate is held to the same standard whichever set of questions they receive.
How much does the Series 79 exam cost?
FINRA's Series 79 page lists the cost as $395. The corequisite SIE exam is a separate exam with its own page on FINRA's site.