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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) Early in Livingston's career.
(b) He was active about 25 years before Livingston started.
(c) He started working in the middle of Livingston's career.
(d) About 50 years before Livingston was born.

2. How does Livingston drive up the price of Consolidated Stove?
(a) Tells the paper its acquiring another company.
(b) Issues more stock.
(c) Sells stock.
(d) Buys up stock.

3. What does Livingston say is the most important thing?
(a) Be prepared to lose money.
(b) Have a general strategy and stick with it.
(c) Follow your hunches.
(d) Be prepared to hold stocks for years.

4. What does he think his debts are doing to his trading?
(a) Making it too hard to borrow money.
(b) Making him too cautious.
(c) Making it impossible to play on a margin.
(d) Causing him to be less objective.

5. What does Williamson agree to allow Livingston to do?
(a) Open an account with him.
(b) Manipulate the price of cotton.
(c) He gives him another stake.
(d) Buy 500 shares of one stock.

6. What is a broker letter?
(a) Letter sent to clients advising them to buy or sell a stock.
(b) Letter from brokers to agents.
(c) Letter from clients to brokers.
(d) Letter from insiders to traders.

7. What does Livingston say a good broker letter should be?
(a) Be deceitful enough to manipulate a client.
(b) Be brief enough to get someone's interest.
(c) Contain a recent hot tip.
(d) Fairly presented and accurately reflect market conditions.

8. Why does Livingston say traders are often vilified in the press and by other traders?
(a) When they corner a market.
(b) When they sell short and the price drops.
(c) When they make too much money.
(d) When they hold onto food crops.

9. Who does Livingston say is complicit in insiders' manipulations?
(a) Stock manipulators.
(b) Most brokerage firms.
(c) The press.
(d) Companies on the exchange.

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

11. What happens to Livingston after his dealings with Percy Thomas?
(a) Nothing happens to him.
(b) He gets married.
(c) He moves back into oil stock.
(d) He becomes ill.

12. Under what condition does David Williamson offer Livingston a stake?
(a) That he remember the firm when dealing.
(b) That he pay it back double.
(c) That he pay 5% interest.
(d) That he open an account with them.

13. What does Livingston do after the Tropical Trading event?
(a) Becomes a stock operator.
(b) Retires.
(c) Goes back to Boston.
(d) Marries.

14. What does Livingston say gives a trader the sense of what to do?
(a) Listening to friends.
(b) Feeling it in your gut.
(c) Time and training.
(d) Reading the Wall Street Journal.

15. What is one of the forces that can cause a stock spectator's plans to go awry?
(a) The government changing regulations.
(b) A company collapsing.
(c) Forces inherent in the market.
(d) The trader calling in sick on the best day to sell.

Short Answer Questions

1. What does Livingston wonder when he is flat broke again?

2. What is one of the main problems of people paying you to do something on the market?

3. Why does Imperial Steel hire Livingston?

4. What does Livingston do to retaliate against the insiders?

5. When is a good time to sell a stock?

(see the answer keys)

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