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

Multiple Choice Questions

1. What does Livingston say broker letters can be?
(a) Incompetent advice.
(b) Useful tools.
(c) A way for the lay person to get rich.
(d) Bad advice.

2. What is a broker letter?
(a) Letter sent to clients advising them to buy or sell a stock.
(b) Letter from insiders to traders.
(c) Letter from clients to brokers.
(d) Letter from brokers to agents.

3. Of whom does Livingston make fun?
(a) Traders and the public looking for tips.
(b) Brokage firms.
(c) The press.
(d) Commodity traders.

4. For what was the famous stock manipulator most known?
(a) Crashing the market one November.
(b) Manipulation of U.S. Steel stock prices.
(c) Manipulation of Bethleham Steel.
(d) Causing worthless stock to be bought at outrageous prices.

5. What does an operator tell people when cornering a market?
(a) The operator doesn't usually tell anyone.
(b) The price is going to drop.
(c) The price is going to raise.
(d) The price will stay the same.

6. What happens to Livingston after his dealings with Percy Thomas?
(a) He moves back into oil stock.
(b) Nothing happens to him.
(c) He gets married.
(d) He becomes ill.

7. When was the famous stock manipulator active?
(a) He started working in the middle of Livingston's career.
(b) He was active about 25 years before Livingston started.
(c) About 50 years before Livingston was born.
(d) Early in Livingston's career.

8. To what does Livingston attribute his success?
(a) Being willing to lose lots of money.
(b) Being in the right place at the wrong time.
(c) Having a lot of friends.
(d) Objectively watching stocks.

9. What does Livingston say cornering a market can do to a price?
(a) Nothing.
(b) Make the price go down.
(c) Make the price go up.
(d) Influence it.

10. How many people held most of the stock in Consolidated Stove?
(a) One.
(b) Three.
(c) Two.
(d) Ten.

11. What does Livingston do to retaliate against the insiders?
(a) Tells all his friends to sell.
(b) Tells the newspaper it's going under.
(c) Sells a bunch of the parent company stock.
(d) Buys all the low priced shares.

12. What is one of the forces that can cause a stock spectator's plans to go awry?
(a) The trader calling in sick on the best day to sell.
(b) A company collapsing.
(c) Forces inherent in the market.
(d) The government changing regulations.

13. Why doesn't Livingston make any money no matter how hard he tries?
(a) He has lost the pattern.
(b) He has lost his enthusiasm.
(c) Market conditions aren't right.
(d) He had to start with too little.

14. What does Livingston do to prevent being broke again?
(a) He sends half his money to his brother to hold for him.
(b) He puts some of his money in municipal bonds.
(c) He opens a large savings account.
(d) He puts money into annuities.

15. Where does Livingston go after the dealings with Percy?
(a) Atlanta.
(b) Chicago.
(c) Boston.
(d) Washington D.C.

Short Answer Questions

1. What does any trade do to the price of a stock?

2. What does everyone finally think about Tropical Trading?

3. Who does Livingston say is complicit in insiders' manipulations?

4. What does Livingston say when someone asks him for a tip?

5. What kind of regulation is enacted during war time?

(see the answer keys)

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