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

Multiple Choice Questions

1. When was the famous stock manipulator active?
(a) About 50 years before Livingston was born.
(b) He was active about 25 years before Livingston started.
(c) Early in Livingston's career.
(d) He started working in the middle of Livingston's career.

2. What does Livingston say is illegal now?
(a) Using information from the newspaper.
(b) Borrowing money to play the market.
(c) Many market manipulations.
(d) Buying and selling on the same day.

3. What does Livingston say he has to do with a strong urge?
(a) Take action.
(b) He never has strong urges.
(c) Wait and see.
(d) Study the situation before doing anything.

4. What does Livingston say one should do when a stock that's being sold is dropping?
(a) Buy some as it drops to boost the price.
(b) Sell all of it at the same day.
(c) Hold it until it bottoms out and starts back up.
(d) Buy and sell within a half hour of each other.

5. What does Livingston suggest is the reason for urges?
(a) Human nature.
(b) Being fearful.
(c) Being competitive.
(d) Small warnings.

6. What does Livingston think the purpose of split stocks is?
(a) To confuse traders.
(b) To make people think the company is doing bad.
(c) To sell the spilt stocks a higher price combined than the original stock.
(d) To make people think the company is doing well.

7. Who was a famous stock manipulator Livingston mentions?
(a) Preston N. Roovelt.
(b) Rupert W. Hatfield.
(c) Chester Bollocks.
(d) James R. Keene.

8. Why does Imperial Steel hire Livingston?
(a) To make its stock more active and sell its shares.
(b) To get the price lowered due to a hostile take-over.
(c) To convince people the company is failing.
(d) To buy up the free floating shares.

9. What does Livingston say cornering a market can do to a price?
(a) Make the price go up.
(b) Influence it.
(c) Make the price go down.
(d) Nothing.

10. Who does Livingston think benefits most from tips?
(a) Companies.
(b) Brokers.
(c) Insiders.
(d) Traders.

11. What does Livingston do to prevent being broke again?
(a) He puts money into annuities.
(b) He sends half his money to his brother to hold for him.
(c) He puts some of his money in municipal bonds.
(d) He opens a large savings account.

12. What does Imperial Steel give Livingston as compensation?
(a) A seat on the board of directors.
(b) Twenty-five thousand shares.
(c) A half a million dollars.
(d) One hundred thousand shares.

13. Why was Consolidated Stove formed?
(a) So the President of the company could retire.
(b) In order to sell gas stoves.
(c) So it could be traded on Wall Street.
(d) To play the market with a company.

14. Why does Livingston say that after 25 years playing the market, it has become more difficult?
(a) The stocks have become too expensive.
(b) There's been a large increase in the number of stocks.
(c) Too many new laws.
(d) There are too many brokers.

15. What does Livingston warn about in the beginning of Chapter XV?
(a) Not to stay a trader your whole life.
(b) There are some things that can't be anticipated.
(c) Not to be greedy.
(d) Not to play the market if you need money.

Short Answer Questions

1. What does one have to do with profit on paper?

2. Who offers to buy Livingston's shares of Imperial Steel?

3. How does Livingston drive up the price of Consolidated Stove?

4. What does Livingston say is a good method to make a stock look good?

5. When Livingston is looking at the price of Tropical Trading what is the market doing?

(see the answer keys)

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