What Series Exams Are Required For Investment Banking?

Are you contemplating a career in investment banking? Knowing the series exams required is essential to success. With this article you’ll be informed on the necessary certifications needed to progress in this sector. You’ll be ready to take the leap and invest in your future.

Series exams required for investment banking

Grasp in-depth knowledge of investment banking tests. To become an investment banker, you must pass the Securities Industry Essentials Exam (SIE), Series 7 Exam, Series 63 Exam, Series 79 Exam, Series 86 and 87 Exams. Plus, other licenses and certifications are vital too!

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Securities Industry Essentials (SIE) Exam

This exam serves as a foundational knowledge test for individuals interested in becoming an investment banker. The Securities Industry Essentials Exam aims to test the applicant’s understanding of regulatory fundamentals, ethical practices, and basic product knowledge. It is a computer-based exam that comprises 75 questions, which need to be answered within 105 minutes.

When taking the SIE Exam, preparation is key. Therefore, potential Investment Bankers should consider investing in some study materials such as online courses and textbooks. Passing this exam does not certify an individual to perform any activities related to buying or selling securities but is a requirement for Series exams.

In addition to passing the SIE Exam, candidates must pass qualifying registration exams such as Series 79 and Series 63 to work as an investment banker in the USA.

According to FINRA News Center, “SIE has open book typing…”. Whether you’re a master of finance or just a master of binge-watching, passing the Series 7 exam is no easy feat.

Series 7 Exam

As an aspiring investment banker, it’s essential to be well-versed with the Series 7 License Exam, also known as the General Securities Representative Examination. This exam is designed to test your knowledge of finance and securities concepts, regulations, and laws essential for investment banking. Passing this exam is mandatory for all professionals interested in working as a registered representative or broker-dealer in the United States.

The Series 7 Exam consists of 125 multiple-choice questions that candidates must answer within three and a half hours. The test covers topics such as equity investments, debt-based securities, options, and futures trading, mutual funds, taxation, and retirement plans. A passing score of at least 72% is necessary to obtain this license.

In addition to the Series 7 Exam Licensing Exam, aspiring investment bankers must also take other series exams based on their job roles. For instance, financial professionals dealing with municipal securities must undergo the Series 52 Municipal Securities Representative Examinations. Similarly, those working with options trading need to clear the Series 4 Registration of Options Principal Examination.

Preparing and passing these series exams will give you a competitive edge when applying for investment banking positions. Investment banks always look for qualified candidates who hold appropriate licenses and certifications in the securities business domain.

Investment banking requires exceptional expertise and knowledge of securities and finance; hence a comprehensive preparation aided by study materials can help you achieve success in these challenging exams. Registering yourself with authorized training providers can increase your chances of acing these exams significantly. Don’t miss out on opportunities due to improper planning; ensure that you are well-equipped with adequate industry knowledge before taking up these critical tests!

The Series 63 exam: separating the savvy investors from the amateurs, because who needs a license to handle other people’s money anyway?

Series 63 Exam

The licensing exam that tests the knowledge and ethical behavior of investment banking professionals is required to pass in order to function legally within the industry. This exam is commonly referred to as the Uniform Securities Agent State Law Examination, or more colloquially as Series 63 Exam. It is developed by the North American Securities Administrators Association (NASAA) with the aim of testing individuals who wish to be involved in selling securities within a state.

The Series 63 Exam assesses understanding of specific financial concepts, such as USA regulatory guidelines for investment securities registration and sales practices/rules. The test-taker needs to demonstrate their ability to comply with state laws regulating various aspects of investing, including ethics and uniform fiduciary standards. Typically taken together with other required investment banking exams such as Series 7 Exam, this exam provides legal backing and vetting for licensed broker-dealers.

It’s worth noting that once one applies and pays fees for Series 63 exam, there’s a 120-day window from the application date till he/she has an appointment to appear for the exam. So plan well and start preparing well beforehands.

As a newcomer in investment banking world, Alex was surprised to find that besides passing various series licences exams before starting his job at an asset management firm, they were also constantly renewing their licenses every few years by repeating these exams all over again. Although it can be tedious process but considering they’re working with client’s money directly it’s essential for any slip-ups or errors to be negated well in time.

“Why take one exam when you can take the Series 79 and feel 79 years older by the end of it?”

Series 79 Exam

The exam that most investment bankers need to take is related to the Series 79 license. It is more of a specialized test that covers various aspects of mergers, acquisitions, and securities underwriting. The main aim is to assess the candidates’ knowledge about financial statements and valuation principles and gauge their ability to identify risks associated with regulated transactions.

The preparation for the Series 79 Exam can be challenging given its specific focus area. However, aspirants can find some helpful resources online and in-person seminars or classes to aid their study plan. Moreover, it’s wise to solve practice exams before sitting for the actual one. This will give them a good idea about the type and format of questions asked in the test.

What sets the Series 79 Exam apart from other finance-related exams is its heavy reliance on case studies featuring real-life scenarios related to banking operations. Therefore, being able to analyze data accurately and provide practical solutions is a crucial requirement for passing this test.

To boost chances of success, aspirants must stay up-to-date with industry-leading publications, develop an in-depth understanding of complex deals through extensive research and engage with colleagues who have experience in M&A or securities underwriting operations.

Why watch a thriller movie when you can just take the Series 86 and 87 exams and experience the same heart-pumping anxiety?

Series 86 and 87 Exams

To be eligible for investment banking, one must take the Series 86 and 87 exams. These exams are mandatory for individuals who produce or are directly involved in equity research reports. The tests cover subjects such as financial modeling, securities laws and regulations, valuation techniques and industry analysis.

Series 86 Exam is exclusively focused on analyzing and evaluating the value of stocks. It aims to test an individual’s ability to determine the intrinsic value of products using essential concepts of discounted cash flows (DCF) analysis techniques.

While Series 87 Exam covers significant securities legal and regulatory issues that need to be implemented by equity research analysts to publish unbiased reports.

It’s important to note that qualifying both exams is necessary if someone wants to obtain licenses for Registered Supervisory Analyst (RSA) designation. It allows individuals within a banking institution’s supervisory chain to approve equity research reports before public release.

Without these exams, one cannot produce or have a direct involvement in equity research reports. Individuals failing these tests are required to wait for at least thirty days before retaking them.

Recently, there have been cases reported in which individuals failed after years of preparation since they underestimated the complexity level of tests.

I didn’t realize entering the investment banking world required so many licenses and certifications, next thing you know they’ll be asking for a doctorate in finance.

Other Licenses and Certifications

Investment banking professionals are required to acquire specific licenses and certifications. In addition to the required Series exams, a few other credentials can prove beneficial in the profession.

• Chartered Financial Analyst (CFA) – It is a globally recognized certification relevant to investment banking professionals who analyze financial instruments.
• Certified Investment Banking Professional (CIBP) – It is a comprehensive certification that focuses on various investment banking-related topics.
• Financial Risk Manager (FRM) – This certification demonstrates the professional’s expertise in handling risk management decisions and strategies.

It is important to note that apart from acquiring these certifications and licenses, continuous professional education is also crucial for remaining updated with the constantly evolving banking industry.

Individuals aspiring for a career in investment banking may consider earning one of these credentials along with their Series exams. These certifications often enhance their knowledge and skills, leading to better job opportunities and higher compensation packages.

FAQs about What Series Exams Are Required For Investment Banking?

What series exams are required for investment banking?

Generally, there are two important series exams that are required for investment banking – Series 79 and Series 63.

What is Series 79 exam?

Series 79 exam is a specialized exam that is designed for individuals who are engaged in investment banking activities. It focuses on topics such as mergers and acquisitions, underwriting and securities offerings, and other related areas.

What is Series 63 exam?

Series 63 exam is a state-level exam that is required for individuals who are involved in securities business activities. It covers topics such as state securities laws, ethical practices, and regulatory compliance.

What is the passing score for these exams?

The passing score for Series 79 exam is 73%, while for Series 63 exam it is 72%. Both exams are scored on a scale of 0-100, with a passing score of 70% or higher.

What is the fee for taking these exams?

The fee for Series 79 exam is $375, while for Series 63 exam it is $135. These fees are subject to change, so it’s best to check with the exam provider for the latest information.

Are there any prerequisites for taking these exams?

There are no specific prerequisites for taking Series 79 exam, but candidates are required to be associated with a FINRA-registered investment banking firm. For Series 63 exam, candidates must have passed the Series 7 exam or an equivalent exam.