When it comes to raising capital for your business or franchise, it’s important to know what options are available to you. One potential method is through the issuance of securities, which includes stocks or bonds. But before you can legally sell securities, you need the appropriate licensing and sponsorship. This is where Series 79 sponsorship comes in. We’ll explore why it matters and provide insights and perspectives.
What is Series 79 Sponsorship?
Series 79 sponsorship is a component of the Financial Industry Regulatory Authority (FINRA) regulations. It refers to sponsoring a company or individual to become licensed as an investment banker. Investment bankers are responsible for assisting in the underwriting process of securities while also aiding in the sale of those securities. The Series 79 license exam is also known as the Investment Banking Representative Exam.
Its Importance
Hiring a Series 79 licensed investment banker provides several benefits. For one, it’s required to legally sell any securities. Second, the investment banker is responsible for conducting due diligence on the company being underwritten to ensure that the companies that invest in that business are doing so intelligently. Without this process, the investment bank would be legally vulnerable due to investors losing their money.
It is crucial for small business owners due to its potential impact on investment banking activities. The license, granted by the Financial Industry Regulatory Authority (FINRA), authorizes the holder to advise on mergers and acquisitions, buyouts, and other corporate reorganization strategies. For small businesses, gaining access to these sophisticated financial strategies, usually the domain of large corporations, through a Series 79 sponsor can be transformative. It allows them to explore new avenues for growth, secure vital funding, or successfully navigate restructuring processes. Moreover, a sponsor’s guidance can provide valuable insights into the complexities of the financial markets, facilitating informed decision-making and fostering financial stability.
An experienced sponsor is also invaluable in helping small business owners evaluate potential investors. They can provide the necessary resources to examine a would-be investor’s net worth, financial history and credit score. This due diligence process ensures that investments are sound and provides an additional layer of security for businesses. Furthermore, sponsors offer guidance to all parties involved in transactions like mergers or acquisitions, aiding in the completion of legal paperwork and ensuring that all parties uphold their obligations.
Given its importance to small business owners, it is vital to find a reliable sponsor with the necessary skills and experience. It is also important to evaluate their fees beforehand to ensure they are reasonable. Ultimately, acquiring Series 79 sponsorship can provide tremendous benefits for small businesses. It can open up new opportunities for growth, provide access to sophisticated financial strategies, and ensure that investments are sound. If you’re a small business owner looking to explore investment banking activities, it is an invaluable tool.
Additionally, it’s worth noting that sponsors also play an instrumental role in enhancing the visibility of small businesses. They can help owners network with potential investors, identify attractive markets, and craft compelling pitches. This kind of guidance can be invaluable in helping small businesses stand out from the competition and attract lucrative investments. Ultimately, sponsors can help small businesses unlock new possibilities for growth and success.
Differences between Series 7 and Series 79
Series 7 sponsorship can legally sell a larger variety of securities, but it doesn’t have the specific expertise in underwriting and selling securities that Series 79 can offer. Series 79 is aimed at companies that want to issue securities, giving them specialized guidance on underwriting, syndicate management, and market stabilization services.
The edge of Series 79 over Series 7 sponsorship lies in its specialization. While Series 7 offers a broader scope, allowing the license holder to sell numerous types of securities, it does not possess the specific expertise that Series 79 does. Series 79 sponsorship provides companies with specialized advice on underwriting, syndicate management, and market stabilization services. This focused knowledge base is crucial for companies that intend to issue securities, as it ensures they are compliant with all regulatory requirements and best practices for their unique needs. Therefore, it is the preferred choice for companies seeking expert guidance in the underwriting process and sale of securities.
How to Acquire Series 79?
If you want to get Series 79 sponsorship, you need to pass the exam administered by FINRA and find a sponsoring firm that suits you. Finding brokerage firms and investment banks that offer sponsored programs can be challenging due to their strategic partnerships with other institutions. It could be a good idea to work with a reliable investment bank that you have a good relationship with.
To conclude, it is of utmost importance for investment banking firms to obtain Series 79 sponsorship. Understanding the nuances and advantages that set Series 79 sponsorship apart from Series 7 sponsorship can empower organizations to make informed decisions when it comes to securing funding for their ventures. Whether you are actively seeking sponsorship or simply seeking a deeper understanding of securities, consulting with seasoned investment bankers can provide invaluable insights and perspectives. By partnering with the right financial experts, you can unlock new opportunities and propel your business to unprecedented heights of success!
