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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. What concerns Livingston in 1906?
(a) Whether new regulations will be enacted.
(b) Whether he will ever start a family.
(c) Who will be elected president.
(d) The world economic situation.

2. What does Livingston do when he proves himself right about the market in Chapter IX?
(a) Sells stock.
(b) Sells high end stock and buys low end stock.
(c) Buys stock.
(d) Holds steady.

3. When is there a financial panic in 1907?
(a) April.
(b) October.
(c) August.
(d) June.

4. In what does Livingston trade besides stocks?
(a) Index funds.
(b) Mutual funds.
(c) Commodities.
(d) Bonds.

5. What should one decide to do in order to make money?
(a) Stay in for the long haul.
(b) Sell when you need money.
(c) Let a financial advisor handle your deals.
(d) Hold on to the stock until it starts to drop.

6. What is one trait Livingston says a successful stock trader must have?
(a) Ability to spend money.
(b) Confidence.
(c) Control of emotions.
(d) Ability to make friends.

7. How does he consider commodities in comparison to stocks?
(a) Make less money on them.
(b) Less complex maneuvers around them.
(c) They can be too volatile.
(d) They are the poor man's stock.

8. What does Livingston say is impossible to catch?
(a) A stock on the rise.
(b) A stock just being offered.
(c) Two stocks related moving in different directions.
(d) Tiny fluctuations of the market.

9. What did Livingston do about individual stocks?
(a) Made charts of their ups.
(b) Stopped focusing on them.
(c) Paid absolutely no attention to them.
(d) Followed them carefully.

10. What must a successful stock trader do?
(a) Make the actual trade.
(b) Play poker.
(c) Borrow money.
(d) Work for a brokage firm.

11. What does Livingston decide to buy next?
(a) He goes into oil stock.
(b) He decides to corner the market in cotton.
(c) He moves back to high tech stock.
(d) He decides to buy soy beans.

12. What do some people claim about a newspaper article that helped Livingston?
(a) He engineered it.
(b) His brother wrote it.
(c) His wife wrote it.
(d) The newspaper interviewed him for it.

13. What should one do in a bull market?
(a) Stick with index funds.
(b) Buy one week, sell the next.
(c) Buy stock.
(d) Wait and see.

14. Why is Livingston having a hard time increasing his money?
(a) His name is too well known.
(b) It's a new game he doesn't know.
(c) The bucket shops are mostly shut down.
(d) He keeps losing his bets.

15. How do some smaller exchanges double their money?
(a) Getting different customers to buy and sell at the same time.
(b) Taking out too much taxes.
(c) Switching prices at the last minute.
(d) Allowing margin play.

Short Answer Questions

1. Where does Livingston go with his $500?

2. Why does it take Livingston so long to understand how to trade?

3. What does Livingston do after he sold all the stock in Union Pacific and after the earthquake?

4. What does Livingston do when the alternate exchanges start to try and manipulate him?

5. On a rising market what should each trade be?

(see the answer keys)

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