This lesson assumes you are already familiar with building and identifying 7th chords.
To review 7th Chords go to Understanding 7th Chords.
It is always important to remember the difference between the bass and the root of a chord. The bass is the lowest note of a chord. The root is the lowest note of a chord when stacked in thirds. Just like a triad can be inverted, a 7th Chord can be inverted by making the bass a note other than the root.
Triad inversions and 7th Chord inversions are nearly identical. The only difference, other than the addition of a 7th, is that a 7th Chord has one additional inversion: 3rd Inversion.
Root Position is when the bass (lowest note) in a 7th Chord (or Triad) is the root. Notice that a root position 7th Chord in close position (all three notes within an octave) will be stacked 3rds. This is identical to a root position triad, except it has a 7th.
First Inversion is when the bass (lowest note) in a 7th Chord (or Triad) is the 3rd. We can make the root position 7th Chord, stacked in thirds as above, into a 1st inversion 7th Chord by moving the root up one octave. In other words, we invert it one time. Notice that a 1st inversion triad in close position will have a 2nd as the top interval.
Second Inversion is when the bass (lowest note) in a 7th Chord (or Triad) is the 5th. We can make the above first inversion 7th Chord into a 2nd inversion 7th Chord by moving the bottom note up one octave. In other words, we invert it a 2nd time. Notice that a 2nd inversion triad in close position will have a 2nd between the middle two notes.
Third Inversion is when the bass (lowest note) in a 7th Chord is the 7th. We can make the above 2nd inversion 7th Chord into a 3rd inversion 7th Chord by moving the bottom note up one octave. In other words, we invert it a 3rd time. Notice that a 3rd inversion 7th Chord in close position will have a 2nd between the bottom two notes. Remember: third Inversion is unique to 7th Chords as compared to Triads.
In all four of the above examples, the chord remains an E minor 7 chord. The only thing that changes is the inversion.