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

Multiple Choice Questions

1. What does Livingston hear about a well known cotton trader?
(a) He has switched to soy beans.
(b) He has quit the business.
(c) He has taken a huge loss.
(d) He has made 2 million dollars.

2. Why is it harder for alternate exchanges to get rid of a customer?
(a) They have a reputation to uphold.
(b) They are very poor.
(c) They sign contracts that can't be broken.
(d) They are regulated by the government.

3. How does Livingston play on the market when he returns from St. Louis?
(a) Carelessly.
(b) Frantically.
(c) Cautiously.
(d) Confidently.

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

5. Under what authority are bucket shops allowed?
(a) They are not legal.
(b) The NYSE authorizes them.
(c) The local constable signs the permit.
(d) Thet are established by New York State government.

6. How does Livingston feel about the amount of money he's making?
(a) It's very good.
(b) He's indifferent, he just likes to play the market.
(c) It's not what he expected.
(d) It's lousy.

7. What kind of trading is done at a bucket shop?
(a) Superficial.
(b) Highly technical.
(c) Throw back.
(d) Subjective.

8. How does Livingston portray himself to the small exchanges?
(a) Someone who is very knowledgeable.
(b) Someone who has never thought about stocks.
(c) Someone who is very, very wealthy.
(d) Someone who has lost a lot of money on Wall Street.

9. What does Percy believe about the cotton market?
(a) It's very stable.
(b) It's a bull market.
(c) It's a bear market.
(d) It's an exciting market.

10. Why is corn having a hard time getting to the market?
(a) Due to the roads.
(b) Due to the weather.
(c) Due to government regulations.
(d) Due to a union stike.

11. What does Livingston figure out he has to do to make a lot of money?
(a) Play one stock consistently.
(b) Trade on broad principles.
(c) Keep his money riding longer.
(d) Spread his money around.

12. What do customers at a bucket shop do?
(a) Buy stock.
(b) Bet on a stock going up or down.
(c) Buy feed buckets.
(d) Play the lottery.

13. What does Livingston do when the alternate exchanges start to try and manipulate him?
(a) He quits and goes to New York.
(b) He buys the exchange.
(c) He starts reverse manipulations.
(d) He calls the police.

14. What does Livingston notice not long after selling off his Union Pacific stock?
(a) The stock falls even farther.
(b) The company folds.
(c) The company expands.
(d) The stock begins rising.

15. How does he start out selling Union Pacific?
(a) All at once.
(b) Shares every other week.
(c) He talks to the brokage manager.
(d) Slowly at first.

Short Answer Questions

1. What is Livingston's job at a bucket shop?

2. How long does Livingston stay in Boston the second time he goes there?

3. Why doesn't Livingston learn the new techniques for betting on Wall Street?

4. What fascinates the young Livingston?

5. For what does young Livingston have an excellent memory?

(see the answer keys)

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