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

Multiple Choice Questions

1. What does Livingston finally begin to study?
(a) Mutual funds.
(b) Trading on margin and call.
(c) Bond and index funds.
(d) Longer-term stock movements.

2. 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.

3. What type of time is the trading at a bucket shop?
(a) Long term.
(b) Short term.
(c) Over a lifetime.
(d) Several weeks.

4. After Livingston gets used to Wall Street, how much does he reach at one point in the early part of his career?
(a) $10,000.
(b) $155000.
(c) A million dollars.
(d) $50,000.

5. What happens to Livingston when he takes Percy's advice?
(a) He loses almost everything he has.
(b) He didn't take Percy's advice.
(c) He doubles his money.
(d) He breaks even.

6. What is Livingston's job at a bucket shop?
(a) Stock broker.
(b) Quotation boy.
(c) Runner.
(d) Trader.

7. What does Livingston do about his concerns in 1906?
(a) Sells long.
(b) Buys short.
(c) Sells short.
(d) Buys long.

8. What is happening to wheat prices when Livingston is trading it?
(a) It's staying the same.
(b) It's going up.
(c) It's moving up and down everyday.
(d) It's declining.

9. When should one stay clear of a stock?
(a) Anytime it goes up.
(b) During the down season for that business.
(c) When it acts erratically.
(d) Right after it's public offering.

10. Why does Livingston meet with Percy Thomas?
(a) Percy was a friend of Livingston's brother.
(b) Percy caused Livingston to lose a lot of money.
(c) Thomas asked to meet him and he admires Percy.
(d) Percy caused Livingston to make a lot of money.

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

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

13. What do the banks ask Livingston to not do during the panic of 1907?
(a) Sell commodities.
(b) Sell any more stock.
(c) Buy any more stock.
(d) Buy mutual funds.

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

15. What does the phrase "go short" mean?
(a) To buy any stock within 30 days.
(b) To sell stock.
(c) To buy stock that's been on the market a short time.
(d) To wait a short time to sell.

Short Answer Questions

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

2. What does Percy believe about the cotton market?

3. Why should a trader start with a small trade?

4. What does Livingston do when the alternate exchanges start to try and manipulate him?

5. What does the phrase "go long" mean?

(see the answer keys)

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