You have to pass the Series 79 exam to receive the certification from FINRA. To increase the effectiveness of your study and make you familiar with the actual exam pattern, we have prepared this FINRA Investment Banking Representative Exam sample questions. Our Sample FINRA Investment Banking Representative Practice Exam will give you more insight about both the type and the difficulty level of the questions on the FINRA IB exam.
However, we are strongly recommending practice with our Premium Series 79 - Investment Banking Representative Practice Exam to achieve the best score in your actual FINRA Series 79 Exam. The premium practice exam questions are more comprehensive, exam oriented, scenario-based and exact match of FINRA Investment Banking Representative exam questions.
FINRA Investment Banking Representative Exam Sample Questions:
01. Shareholder approval is required for a merger. Which document is used to solicit shareholder votes?
a) Prospectus supplement
b) Confidential information memorandum
c) Proxy statement
d) Form 10-Q
02. A buyer evaluates whether an acquisition will be accretive or dilutive to earnings. Which analysis directly addresses this question?
a) Comparable company analysis
b) Accretion/dilution analysis
c) Dividend discount model
d) Liquidation analysis
03. Following completion of a distribution, trading restrictions under Regulation M are lifted. What condition generally triggers the end of these restrictions?
a) Filing of the registration statement
b) Pricing of the offering
c) Completion of the distribution
d) Delivery of the preliminary prospectus
04. Under a “jump ball” pot agreement, how are selling concessions allocated?
a) Based on who made the sale
b) Based on syndicate seniority
c) Equally among all members
d) Based on issuer preference
05. When assessing operating efficiency across comparable companies, an analyst focuses on margins. Which margin reflects profitability after operating expenses but before interest and taxes?
a) Net margin
b) EBITDA margin
c) Gross margin
d) Operating margin
06. During a distribution, an underwriter considers trading in the issuer’s securities. What is the primary objective of Regulation M restrictions?
a) Increase trading liquidity
b) Prevent market manipulation during distributions
c) Reduce underwriting compensation
d) Accelerate settlement
07. Existing shareholders agree not to sell shares for a defined period after an IPO. What is the primary purpose of this agreement?
a) To satisfy listing standards
b) To comply with Regulation D
c) To increase underwriting fees
d) To stabilize post-offering trading
08. In a firm-commitment underwriting, the issuer asks what risk the underwriters assume. Which risk is transferred to the underwriting syndicate?
a) Market risk of unsold securities
b) Regulatory approval risk
c) Business execution risk
d) Issuer credit risk post-offering
09. While reviewing a company’s balance sheet, an analyst evaluates liquidity. Which item is typically classified as a current asset?
a) Goodwill
b) Long-term debt
c) Accounts receivable
d) Deferred tax liabilities
10. Before presenting conclusions to senior bankers, an analyst performs a final review of assumptions. What is the primary purpose of this step?
a) To finalize regulatory filings
b) To ensure internal consistency and reasonableness
c) To reduce legal liability entirely
d) To confirm investor interest
Answers:
Question: 01
Answer: c |
Question: 02
Answer: b |
Question: 03
Answer: c |
Question: 04
Answer: a |
Question: 05
Answer: d |
Question: 06
Answer: b |
Question: 07
Answer: d |
Question: 08
Answer: a |
Question: 09
Answer: c |
Question: 10
Answer: b |
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