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

Multiple Choice Questions

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

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

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

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

5. What did Livingston decide to look at when thinking about what to buy or sell?
(a) The ten best stocks.
(b) Index funds.
(c) The overall market.
(d) Mutual funds.

6. Who convinces Livingston that Union Pacific is manipulating him?
(a) His wife.
(b) The branch manager.
(c) His mentor.
(d) His best friend.

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

8. What happens when one places an order on Wall Street time wise?
(a) It's never implemented for 24 hours.
(b) It is done instantly.
(c) The SCCI has to check it first.
(d) There is a short lag.

9. What do the small shops agree Livingston can do?
(a) Open a very large account.
(b) Buy on margin.
(c) Buy and sell at the same time.
(d) Trade on the prices quoted.

10. Why did Livingston stop in New Haven on his way to New York?
(a) To bet in a bucket shop.
(b) To see his brother.
(c) To take a job.
(d) To see his mother.

11. What does Livingston believe about the cotton market when he and Percy are discussing it?
(a) It's too volatile.
(b) It's a dull market.
(c) It's a bull market.
(d) It's a bear market.

12. What does Livingston complain about Wall Street?
(a) How slow trades are.
(b) How much money he lost.
(c) How the market goes up and down too much.
(d) How everyone is unfriendly.

13. What does Roberts suggest to Livingston?
(a) Opening a bucket shop himself.
(b) Going back to school.
(c) Betting on corn and wheat.
(d) Smaller, alternate exchanges.

14. Why did Livingston refuse the offer of partnership with Percy?
(a) He works alone.
(b) He doesn't like being involved in cotton.
(c) He thinks Percy is on the illicit side of manipulations.
(d) He didn't like Percy's methods.

15. How much money does Livingston make when he first comes back from St. Louis?
(a) He makes a moderate amount of money.
(b) He makes a huge amount of money.
(c) He loses money.
(d) He gains slowly, but steadily.

Short Answer Questions

1. What does the pattern ignore that can create a problem?

2. What does Livingston do with his predictions at first?

3. How old was Livingston when he made his first $1000?

4. What is one trait Livingston says a successful stock trader must have?

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

(see the answer keys)

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