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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. What mistake was made with Consolidated Stove's initial public offering?

2. What does Livingston warn about in the beginning of Chapter XV?

3. Under what condition does David Williamson offer Livingston a stake?

4. What does Livingston notice about the price of Tropical Trading stock?

5. What does Livingston think the purpose of split stocks is?

Short Essay Questions

1. Sum up what Livingston says about cornering the market.

2. How does a trader test a stock?

3. What does Livingston do when insiders in Tropical Trading try to knock him out of the market?

4. What does Livingston warn about various conditions that affect the market?

5. What happens to Livingston after he follows Percy's advice?

6. How does Livingston feel about hunches?

7. What happens when Livingston starts buying up what Imperial Steel stock is on the market.

8. Is Livingston asked for tips? What does he say?

9. What does Livingston say about forces that can cause plans to go wrong?

10. What is one of the primary tools to manipulate a stock?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Livingston, though still losing money, is making enough money to live on, which only delays the inevitable need to learn new trading techniques.

1. Explain why having enough money to live on would delay Livingston learning the stock broker trade.

2. If one has a natural talent for a musical instrument and can play it somewhat when first trying what do you think would be the equivalent for farther learning of the musical instrument if the situation was an analogy for the statement above?

3. If the above statement is true do you think it would mean mediocrity can get in the way of greatness? Why or why not?

Essay Topic 2

Livingston has met and become friends and/or colleagues or discussed a number of notable people, many of whom he discusses in this book. Discuss he following:

1. Choose three people whom Livingston mentions positively and give a brief idea of his opinions about those three people (or stereotypes).

2. Choose three people whom Livingston mentions negatively and give a brief idea of his opinions about those three people (or stereotypes).

3. Judging what Livingston says about different people in his text, how would you characterize him as a friend? As a colleague?

Essay Topic 3

Livingston is convinced his own knowledge, ideas, and hunches serve him better than any other other sources of information. He discusses the importance of being objective and neutral and not preferring a bear or bull market, but trading based on what conditions actually are.

1. How do you think Livingston being convinced about his ideas being better than other people's might help and harm him in trading? Use examples from the book to support your answer.

2. Why do you think a trader has to be objective? Use examples from the book to support your answer.

3. Discuss what you see as the conflict between playing hunches and being objective.

(see the answer keys)

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