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

Multiple Choice Questions

1. What fascinates the young Livingston?
(a) The patterns on the ticker tape.
(b) Why people come to bucket shops.
(c) The way the stocks move up and down.
(d) How people bet.

2. What does it take to be one of the best traders?
(a) Knowing when to borrow money.
(b) Knowing how to use the patterns.
(c) Knowing when to buy on margin.
(d) Knowing when bonds are good.

3. What does experience give a successful stock trader?
(a) Friends.
(b) Learning.
(c) A job.
(d) Respect.

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

5. What does Livingston do with his predictions at first?
(a) He only bets a little.
(b) He changes them then shows them to others.
(c) He shows them to others.
(d) He records them.

6. What concerns Livingston in 1906?
(a) Whether new regulations will be enacted.
(b) Whether he will ever start a family.
(c) Who will be elected president.
(d) The world economic situation.

7. What should one decide to do in order to make money?
(a) Sell when you need money.
(b) Stay in for the long haul.
(c) Let a financial advisor handle your deals.
(d) Hold on to the stock until it starts to drop.

8. Where does Livingston go when he leaves Boston?
(a) New York.
(b) Florida.
(c) Washington D.C.
(d) Pittsburgh.

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

10. 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.

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

12. What does Livingston discuss at the beginning of this chapter about stocks?
(a) Various patterns.
(b) How it's all random.
(c) How one stock is good and one isn't.
(d) How stocks come in all sizes.

13. What has happened to Percy recently in the market?
(a) He had withdrawn from the market.
(b) He caused the market to go into a slide.
(c) He made millions.
(d) He lost millions.

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

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

Short Answer Questions

1. Who convinces Livingston that Union Pacific is manipulating him?

2. What does Livingston say will happen in a stock or commodity if a surprise event occurs?

3. What's the difference between working on the stock exchange and the bucket shops?

4. How are the quotes for stocks disseminated?

5. Why did Livingston stop in New Haven on his way to New York?

(see the answer keys)

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