FINRA Series 79 Exam Questions and Answers Updated 2026

FINRA Series 79 Exam
Questions and Answers
Updated 2026
DebtBtoBcapitalizationBratioBuseB_____________B-
BAnswerbookBvalue,BincludingBofBequity



GreenBshoeBclauseB-
BAnsweragreementBallowingBtheBunderwritersBtoBsellBadditionalBsharesBifBdemandBisBh
ighBforBanBofferingBofBsecurities;



canBbeBinBpartBorBinBfull

atBanyBprice

canBallowBunderwriterBtoBprofit

-doesn'tBneedBtoBbeBapprovedBbyBunderwriterBonceBitsBdisclosedBinBtheBprospectus



ABcompanyBthatBisBnotBaBcommercialBbankBissuesBaB10-
yearBbond.BItBisBexemptBfromBSECBregistration,BregardlessBhowBsold.BTheBissuerBmustB
beBwhatBtypeBofBorganization?B-BAnswernon-profit



FrederickBisBtheBCEOBofBaBpublicBcompanyBthatBtradesBonBtheBOTCBBulletinBBoard,Ban
dBheBownsB20,000BsharesBofBstockBinBtheBcompany.BHeBhasBaskedByouBtoBcalculateBh
owBmanyBsharesBheBcanBsellBduringBtheBnextBthreeBmonths.BWhatBdataBdoByouBneed
BtoBgiveBhimBanBanswer?B-BAnswer-totalBnumberBofBsharesBoutstanding



ABlimitBisBimposedBonBtheBnumberBofBcontrolBsharesBanBaffiliateBmayBsellBduringBany
Bthree-
monthBperiod.BTheBsaleBcan'tBexceedBtheBgreaterBofB1%BofBoutstandingBsharesBinBthe
BsameBclassBorBtheBaverageBreportedBweeklyBtradingBvolumeBduringBtheBfourBweeksBp
recedingBtheBsale.BHowever,BtradingBvolumeBisBnotBconsideredBforBsecuritiesBthatBtrad
eBonBtheBOTCBBulletinBBoardBorBthroughBOTCBPink.

,OnlyB__________BareBpermittedBtoBuseBfreeBwritingBprospectusesBduringBtheBpre-
registrationBperiod.BInBtheBcoolingBoffBperiodB(______________________)BFWPsBmayBb
eBusedBbyB_________,B_________,B__________,BandB_________________Bissuers.B____
__________BmayBneverBuseBFWP's.B-BAnswer1.)BWKSI's

2.)BAfterBtheBregistrationBisBfiled

3.)BWKSI's,Bseasoned,Bunseasoned,Bnonreporting

4.)BIneligible



LimitedBpartnershipBinterestsBareBtypicallyBregulatedBasB_______________B-
BAnswersecurities,BunderBfederalBandBstateBlaws



TheBSecuritiesBExchangeBActBofB1934BdefinesBinsidersBasB-
BAnswerofficers,Bdirectors,BandBownersBofBmoreBthanB10%BofBtheBoutstandingBstockBo
fBaBcorporation



ABsyndicateBisBdistributingBsecuritiesBofBWorldwideBTelecomBInc.,BaBcompanyBwithBanB
averageBdailyBtradingBvolumeB(ADTV)BofB$9BmillionBandBaBpublicBfloatBofB$60Bmillion.
BForBanBunderwriter,BwhenBdoesBtheBRegulationBMBrestrictedBperiodBbeginBandBend?B
-BAnswerbegins:BdayBbeforeBpricingBtheBoffering;



ends:BwhenBtheBdistributionBisBcomplete



ABCBSecuritiesBisBparticipatingBinBanBunderwritingBforBBrightBLeaf,BInc.,BaBpublicBcomp
any.BABCBalsoBservesBasBaBmarketBmakerBforBBrightBLeafBandBownsBaBblockBofBitsBsto
ck.BDoesBitBhaveBaBconflictBofBinterest?B-
BAnswerOnlyBifBitBownsBatBleastB10%BofBtheBoutstandingBcommonBstock



AreBcrowdfundingBissuersBrequiredBtoBupdateBanyBmaterialBchangesBinBtheBinformation
BcontainedBinBtheirBFormBCBdisclosuresBfiledBwithBtheBSEC?BIfBso,Bwhen?B-
BAnswerYes,BatBleastBtwiceBoverBtheBcourseBofBanBoffering



1.)BWithinBfiveBbusinessBdaysBofBreachingB50%BofBtheBcompany'sBtargetBraise

,2.)BwithinBfiveBbusinessBdaysBofBreachingB100%BofBtheBcompany'sBtargetBraise



FINRABRuleB5150B-BAnswerFairnessBOpinions

WhenBrenderingBfairnessBopinion,BfirmBmustBdisclose:

-contingentBfees

-
materialBrelationshipBforBcompensationBwithinBpastB2ByearsBwithBanyBpartyBinvolvedBin
BtheBtransaction

-independentBverificationBforBinformationBthatBtheBopinionBisBreliantBon

-useBofBfairnessBcommittee

-
insiderBcompensationB(fairnessBofBcompensationBtoBanyBinsiderBofBtheBclientBcompany
BrelativeBtoBcompensationBtoBpublicBshareholdersBorBemployees



AnBinvestmentBbankingBfirmBisBreceivingBaBfeeBofB$25,000BforBwritingBaBfairnessBopini
onBandBprovidingBotherBadviceBpertainingBtoBanBM&ABtransaction.BInBwhichBcaseBmus
tBtheBamountBofBtheBfeeBbeBdisclosed?B-BAnswerInBnoBcase



TheBratioBofBcurrentBassetsBtoBcurrentBliabilitiesBisBmostBcommonlyBknownBasBtheB-
BAnswercurrentBratio



PriceBtoBBookBValueBCalculationB-
BAnswer(stockBpriceBxBoutstandingBshares)B/B(shareholdersBequityB-Bgoodwill)



RuleB139BexclusionBisBavailableBforB-
BAnswerTheBRuleB139BexclusionBisBavailableBonlyBforBresearchBcoverageBthatBisBongoin
gBandBdoesBnotBrepresentBaBbrokerBdealer'sBinitialBcoverageBonBtheBissuerBorBitsBsecu
rities.



twoBmainBexemptionsBthatBanBunderwriterBmayBclaimBasBdefenseBagainstBaBcivilBsuitB
allegingBanBuntrueBstatementBinBaBregistrationB-BAnswer-
"reasonableBinvestigationBandBgroundsBforBbelief"

, -"lackBofBknowledge"



WhichBofBtheBfollowingBcategoriesBofBfilersBmustBfileBtheirBFormB10-
QBwithinB40BcalendarBdays?B

I.BLargeBacceleratedBfilerB

II.BNon-acceleratedBfilerB

III.SmallBacceleratedBfilerB

IV.BAcceleratedBfilerB-BAnswerIBandBIV



LargeBacceleratedBfilersB($700BmillionBorBgreaterBpublicBfloat)BandBacceleratedBfilersB($
75BmillionBorBgreaterBpublicBfloatBandBlessBthanB$700Bmillion)BhaveB40BcalendarBdays
BfromBtheBendBofBtheBfiscalBquarterBtoBfileBaBFormB10-Q.



10-
QBfilingBdeadlinesBofBlargeBacceleratedBfilers,BcomparedBtoBacceleratedBfilers,BandBnon-
accelerated?B-BAnswerTheBsameBforBboth



TheB10-
QBfilingBdeadlineBisB40BdaysBafterBtheBendBofBeachBfiscalBquarterBforBbothBlargeBaccel
eratedBfilersBandBacceleratedBfilers.BItBisB45BdaysBforBotherB(non-accelerated)Bfilers.



ThreeBcategoriesBofBfilersBandBqualificationsB-BAnswer-
LargeBAcceleratedB($700mmB+Bnon-affiliateBmarketBcapBorBmore)



-AcceleratedB($75mm-$699mm)



-Non-AcceleratedB(<75mm)



UnderwritersBactBinBanBagencyBcapacityBwhenBengagedBinBwhichBtypesBofBunderwritin
gs?B

I.BFirmBcommitmentB