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FINRA Series 79 Study Guide

Preview the FINRA Series 79 flashcard-note study format, then unlock Pro for the complete section-by-section guide.

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Section 1 Collect market, company, offering, and transaction data Preview

Preview: 1. Collection, Analysis and Evaluation of Data (49%)

Preview includes
  • 4 of 4 lesson topics
  • 1 overview segment
  • 3 core concepts
  • 2 exam tips

Lesson Topics

  • Data Source Identification
  • Data Collection Methods
  • Data Analysis Techniques
  • Data Validation

Overview

This objective focuses on the collection and initial analysis of market, company, offering, and transaction data, forming the foundation for subsequent evaluations. The goal is to assemble a comprehensive dataset for understanding market dynamics and individual entities within those markets.

Core Concepts

  • Data Collection Scope: The objective mandates gathering data from commercial databases (e.g., Bloomberg, Refinitiv), regulatory filings (SEC), company websites, news sources, recent offerings (IPO, debt), and M&A transactions.
  • Data Analysis Focus: Collected data is primarily used for trend analysis, company-specific assessments, valuation comparisons, and relative positioning within the market.
  • Data Integrity: Verification of data sources and consistency across datasets is crucial. Reliance on a single source is discouraged; triangulation of information is recommended.

Exam Tips

  • The exam will assess your ability to select the *correct* data source based on the *specific question's requirements*. Don't simply list data sources; demonstrate your understanding of *why* a particular source is appropriate.
  • Focus on the *purpose* of the analysis. Is it for valuation, trend identification, or company assessment? This will guide your data source selection.
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Section 2 Prepare public-offering documents and required filings Pro
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Section 3 Set up and structure a sell-side transaction Pro
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Section 4 Use Exchange Act schedules, reports, statements, and forms Pro
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Section 5 Coordinate permissible internal and client communications Pro
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Section 6 Distribute preliminary and final prospectuses Pro
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Section 7 Value the seller and evaluate potential buyers Pro
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Section 8 Analyze the three core financial statements Pro
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Section 9 Apply underwriting-term and conflict controls Pro
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Section 10 Apply liquidity, profitability, and leverage metrics Pro
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Section 11 Market a sell-side transaction Pro
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Section 12 Apply valuation frameworks and transaction metrics Pro
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Section 13 Distinguish syndicate agreements and underwriting commitments Pro
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Section 14 Review precedent transactions and ownership data Pro
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Section 15 Manage bids and execute the sale Pro
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Section 16 Compare financing alternatives, structures, and investors Pro
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Section 17 Apply distribution-period market-activity controls Pro
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Section 18 Evaluate transaction alternatives and preliminary recommendations Pro
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Section 19 Analyze a buy-side acquisition before bidding Pro
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Section 20 Perform offering-document due diligence Pro
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Section 21 Educate sales personnel and build the order book Pro
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Section 22 Distinguish sell-side and buy-side due diligence Pro
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Section 23 Manage the buy-side bid and due diligence process Pro
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Section 25 Recommend offering size, price, and timing Pro
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Section 26 Prepare and disclose a fairness opinion Pro
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Section 27 Manage allocation, stabilization, and syndicate economics Pro
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Section 28 Manage signing-to-closing activities Pro
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Section 29 Apply IPO, fixed-price, and offering-participant requirements Pro
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Section 30 Complete post-execution records and settlement Pro
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Section 31 Apply tender-offer communication and equal-treatment requirements Pro
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Section 32 Identify securities and offerings exempt from registration Pro
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Section 33 Analyze investor priorities in a restructuring Pro
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Section 34 Structure private placements and institutional resales Pro
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Section 35 Review loan documents and financial covenants Pro
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Section 36 Distinguish reorganization, liquidation, and Section 363 transactions Pro
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