Demystifying Series 7 vs. 79: A quick guide

If you’re trying to choose a career in finance, you might feel torn between several options. There are many directions you can take, and each comes with its own pros, cons, licensing requirements, and responsibilities. Two of the most common paths are financial advising/portfolio management and investment banking.

Each of these fields requires a different license tailored to its specific roles within the financial industry. The Series 7 is broader in scope, while the Series 79 is geared toward specialized positions in investment banking and corporate finance. Deciding which one is “better” depends on your individual career goals and interests.

What is the Series 7 exam?

To obtain the Series 7 license, or General Securities Representative license, you must first pass the Series 7 exam administered by the Financial Industry Regulatory Authority (FINRA). Earning this credential demonstrates that an individual is prepared to advise clients and execute transactions across a broad range of investment products, including stocks, bonds, and mutual funds. With the Series 7 license, professionals are authorized to help clients develop investment portfolios tailored to their financial strategies, considering both risk and return in line with client goals.

This licensing process often begins after passing the SIE (Securities Industry Essentials) exam, which lays the foundation for taking the Series 7 and other FINRA “Top-Off” exams (for professionals entering associate-level roles). The Series 7 exam challenges candidates' knowledge of securities products, regulations, and investment strategies, emphasizing practical scenarios and ethical considerations in financial advising. Achieving the Series 7 passing score is necessary for prospective representatives to fully utilize the privileges the license provides in the securities industry.

What can you do with a Series 7 securities license?

Most professionals who obtain the Series 7 license pursue careers in financial advising, portfolio management, and related roles. Typical positions held by individuals with Series 7 credentials include financial advisor, financial planner, broker-dealer registered representative, and investment adviser representative. Earning the Series 7 license allows these professionals to work at FINRA-member brokerage firms, banks, and wealth management companies, where they are authorized to buy and sell a broad range of securities on behalf of clients.

All activities performed under the Series 7 license are regulated by FINRA, which also sets the Series 7 license requirements and oversees the examination process. For those seeking an entry point into the financial industry or aiming for advisory and planning positions, meeting the Series 7 license requirements is an important step toward launching a career in securities and investment services.

How long is the Series 7?

Test takers are given 3 hours and 45 minutes to answer 130 questions on the exam. 125 of those questions will count toward your final score, while 5 are reserved as unscored, “pretest” questions.

Series 7 exam structure

The professional functions and topics covered on the test, as well as their weights, are:

• Seeks Business for the Broker-Dealer from Customers and Potential Customers (7.2%)
• Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives (8.8%)
• Provides Customers with Information about Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records (72.8%)
• Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions (11.2%)

The content is intended to reflect the practical, day-to-day knowledge and skills required for client-facing Series 7 roles.

Series 7 corequisites and registration

The Series 7 exam is a specialized securities qualification that requires candidates to meet specific requirements before sitting for the test. To become eligible to take the Series 7 exam, you must:

• Be at least 18 years old
• Successfully complete the Securities Industry Essentials (SIE) exam
• Obtain employment and sponsorship from a FINRA-member firm
• Have your sponsoring firm register you for the Series 7 exam

While the SIE exam serves as an introduction to the financial services industry, covering basic concepts and regulations, the Series 7 exam is more comprehensive. Earning your Series 7 license means demonstrating a deeper understanding of investment products, client suitability, and practical financial strategies. The Series 7 exam, with its challenging content and duration, is designed to assess your readiness for critical roles in the securities industry.

Passing score for the Series 7

The Series 7 requires a 72% to pass, or roughly answering 90 of 125 questions correctly. The exam covers job functions in advisory and management roles, especially duties involving making suitable recommendations to clients.

After the Series 7

After earning the Series 7, professionals open the door to a broad range of financial services roles. With this credential, individuals are qualified to become financial advisors, financial planners, stockbrokers, portfolio managers, or even investment bankers. At the representative level, what Series 7 allows you to do includes meeting with corporate, retail, or individual clients and assuming increasingly complex responsibilities within a financial firm. Professionals at this level are usually required to pair the Series 7 with the Series 63, Series 65, or Series 66 law exam to legally perform sales, advisory, and related duties in their chosen state.

This foundational license also grants professionals the flexibility to progress into principal positions, advance to management roles, or establish their own private practice as independent advisors with FINRA sponsorship. Because Series 7 holders can work with a diverse client base, they may serve clients ranging from individual investors to large corporations.

What is the Series 79 exam?

The Series 79 exam is a specialized representative-level test designed to assess a candidate’s knowledge and competency in core investment banking functions. Earning the Series 79 license demonstrates proficiency in facilitating debt and equity securities offerings, including both private placements and public offerings. The exam also covers investment banking activities such as advising clients on significant corporate financial decisions and managing mergers and acquisitions.

Compared to the more general Series 7, the Series 79 license is explicitly tailored for investment banking professionals, offering a focused credential for those seeking expertise in this field. Candidates must pass the SIE exam before attempting the Series 79, ensuring a solid foundation in securities industry fundamentals.

What does a Series 79 securities license allow you to do?

The Series 79 license enables early-career financial representatives to actively participate in mergers and acquisitions (M&A), asset sales, and securities offerings. Successfully passing the Series 79 exam is a clear indicator of an individual’s proficiency in data analysis, underwriting, tender offers, and financial restructuring. Aspiring investment banking analysts and professionals seeking to advise clients or execute complex corporate transactions, including reorganizations, should strongly consider obtaining the Series 79 license to enhance their credentials and advance their careers.

How long is the Series 79?

The Series 79 contains 75 scored questions and takes 2 hours and 30 minutes to complete. Test-takers will encounter 10 additional unscored questions.

Series 79 exam structure

The professional functions and topics covered on the Series 79 and their respective percentages on the exam are as follows:

• Collection, Analysis, and Evaluation of Data (49.3%)
• Underwriting/New Financing Transaction, Types of Offerings and Registration of Securities (26.7%)
• Mergers and Acquisitions, Tender Offers and Financial Restructuring Transaction (24%)

Note: Both the Series 7 and 79 contain technical, terminology-heavy content. About 10-15% of the exam asks test-takers to complete computational problems, though the math on these exams is mostly finance-related arithmetic and algebraic equations.

Series 79 corequisites and registration

Like Series 7 candidates, Series 79 candidates must be above the age of 18, hold the SIE, and have sponsorship from a FINRA-member firm.

While an advanced degree is not required for the Series 7 or Series 79, completing coursework in finance, business, and accounting will greatly enhance your preparation. Early-career financial professionals with some experience in investment banking, either through an internship or entry-level role, will have a better understanding of the content on the 79.

Passing score for the Series 79

The passing score for the Series 79 is 73%, or about 55 questions right.

After the Series 79

After passing the Series 79, candidates can assume the responsibilities of a representative-level investment banker and begin working on behalf of institutional and commercial clients. From there, Series 79 holders and associates can advance to lead roles in investment banking, M&A advisory, capital markets, restructuring, and corporate finance advisory. Series 79 holders are also permitted to provide their own consulting services, provided they are affiliated with a FINRA-member firm. Many 79 holders also possess a Series 63, or a Uniform Securities Agent State Law license.

While any career path in finance can be intense and require long hours, especially when starting as a new employee, investment banking is known to be particularly demanding for junior workers. However, the potential earnings and bonuses in this field are very high, with some successful entry-level employees reaching six-figure salaries or even beyond. Financial advising and other common Series 7-related areas can be lucrative options, but starting salaries are typically in the higher end of five figures, with mid-level professionals often earning above six figures. Work-life balance is much more manageable with these roles, and knowing the costs and benefits of both paths is helpful for those planning their futures.

Is the Series 7 harder than the Series 79?

Though the Series 79 exam is shorter, it is often regarded as more challenging than the Series 7 due to its intensive analytical content and emphasis on advanced technical concepts, such as valuation methods and deal structuring. When comparing Series 79 vs. Series 7, it’s important to note that the Series 7 has a lower projected pass rate, typically around 65-70%, despite its longer format.

In contrast, the pass rate for the Series 79 is higher, at approximately 87-90%. This difference may be attributed to the fact that Series 79 candidates tend to possess more specialized knowledge and experience. Understanding the distinct content focus of each test can help candidates choose the right path based on their professional strengths and goals.

Final Series 7 vs. Series 79 comparison table

Here’s a summary of the Series 7 and Series 79 exam structure, timing, and purpose:

Purpose

• Series 7: Assesses the competency of an entry-level registered representative to perform their job as a general securities representative.
• Series 79: Measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of an investment banking representative.

Potential career paths

• Series 7: Financial advisor/planner, stockbroker/registered representative, wealth management associate, trading assistant, compliance officer, client services/relationship manager, investment banker
• Series 79: Investment banking analyst/associate, corporate finance advisor, leveraged finance/restructuring specialists, M&A advisor, equity capital markets originator

Use this chart to decide which exam best aligns with your professional goals.

Closing thoughts: Similar beginnings, different paths

Investment banking and wealth management are two popular career paths in the financial industry. While they may appear similar at first glance, they differ significantly in their typical client bases, day-to-day responsibilities, and overall objectives. Both paths begin with the SIE exam, are client-focused and technically demanding, and offer the potential for impressive earnings.

Because finance is a highly regulated industry, investment bankers, wealth managers, and other professionals must pass licensing exams before they are qualified to perform the responsibilities associated with these roles. For those drawn to the fast-paced, high-intensity environment of investment banking, the Series 79 is the appropriate licensing exam. For individuals pursuing careers in financial advising or portfolio management, or those who prefer more flexible career options, the Series 7 is typically the better choice.