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

Multiple Choice Questions

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

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

3. What does Livingston say one should do when a stock that's being sold is dropping?
(a) Buy some as it drops to boost the price.
(b) Hold it until it bottoms out and starts back up.
(c) Buy and sell within a half hour of each other.
(d) Sell all of it at the same day.

4. Who does Livingston think benefits most from tips?
(a) Brokers.
(b) Traders.
(c) Insiders.
(d) Companies.

5. What does everyone finally think about Tropical Trading?
(a) The parent company is in trouble.
(b) The stock is solid.
(c) The insiders are dishonest.
(d) The stock can't be manipulated.

6. What does Livingston suggest is the reason for urges?
(a) Human nature.
(b) Being fearful.
(c) Being competitive.
(d) Small warnings.

7. What does Livingston say when someone asks him for a tip?
(a) He doesn't have time to be bothered.
(b) He ignores the person.
(c) Comments on the general run of the market.
(d) He doesn't take or give tips.

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

9. What does Livingston say is the most important thing?
(a) Be prepared to lose money.
(b) Have a general strategy and stick with it.
(c) Follow your hunches.
(d) Be prepared to hold stocks for years.

10. How does Livingston feel about selling stocks on a payment plan and stock splits?
(a) He warns against this.
(b) He has no opinion.
(c) He thinks you should do them but on a limited basis.
(d) He thinks they're a great idea.

11. When is a good time to sell a stock?
(a) When others are selling.
(b) When it is dropping.
(c) When the price is rising.
(d) When it reaches its top price.

12. Why does Livingston say certain stock manipulator practices should be banned?
(a) They result in stolen money.
(b) They hurt the public.
(c) They are too complicated.
(d) They have resulted in murder.

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

14. What do the insiders of Tropical Trading do when Livingston goes short?
(a) Make the price drop way down.
(b) Put bad articles about him in the newspaper.
(c) Ask him to hold on to the stock.
(d) Run the stock back up.

15. How was the company Consolidated Stove formed?
(a) Two companies came together.
(b) It was just a regular company named Consolidated Stove.
(c) By a hostile take over.
(d) Combining three other companies.

Short Answer Questions

1. What does Livingston say gives a trader the sense of what to do?

2. What does Livingston do after the Tropical Trading event?

3. When was the famous stock manipulator active?

4. Why does Livingston declare bankruptcy?

5. What does Imperial Steel give Livingston as compensation?

(see the answer keys)

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