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

Multiple Choice Questions

1. What is the stock Livingston buys to restart his career?
(a) Bethlehem Steel.
(b) Pullman Railroad.
(c) Standard Oil.
(d) Winchester guns.

2. Who offers to buy Livingston's shares of Imperial Steel?
(a) A banking concern.
(b) His brokerage firm.
(c) His old partner.
(d) His brother.

3. What does Livingston think one should never feel about the market?
(a) Confidence.
(b) Anger.
(c) Elation.
(d) Depression.

4. What does Livingston warn about in the beginning of Chapter XV?
(a) There are some things that can't be anticipated.
(b) Not to play the market if you need money.
(c) Not to stay a trader your whole life.
(d) Not to be greedy.

5. How does Livingston end up in his dealings with Tropical Trading?
(a) He breaks even.
(b) He makes about $50,000.
(c) He makes about a million dollars.
(d) He loses about half of what he put in.

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

7. In what kind of shape is Imperial Steel?
(a) It is still growing.
(b) Very bad shape.
(c) Excellent shape.
(d) Sound shape.

8. What does Livingston say about a drop in a stock price?
(a) It was too high for buying.
(b) It wouldn't drop if it weren't justified.
(c) It only drops as the market is going down.
(d) It was too low for buying.

9. What does Livingston wonder when he is flat broke again?
(a) Whether he should switch to a different work.
(b) How he made so many mistakes.
(c) If his brother has some money to lend him.
(d) How he can make his money back.

10. Who does Livingston say is complicit in insiders' manipulations?
(a) Companies on the exchange.
(b) The press.
(c) Most brokerage firms.
(d) Stock manipulators.

11. What does Livingston say gives a trader the sense of what to do?
(a) Listening to friends.
(b) Reading the Wall Street Journal.
(c) Time and training.
(d) Feeling it in your gut.

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

13. Why was Consolidated Stove formed?
(a) So the President of the company could retire.
(b) So it could be traded on Wall Street.
(c) To play the market with a company.
(d) In order to sell gas stoves.

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

15. What mistake was made with Consolidated Stove's initial public offering?
(a) Flooded the market with too much stock.
(b) Timed the IPP for a down market.
(c) Didn't issue enough stock for the demand.
(d) Didn't listen to Livinston's advice.

Short Answer Questions

1. Why does Livingston say that after 25 years playing the market, it has become more difficult?

2. Who does Livingston think benefits most from tips?

3. To what does Livingston attribute his success?

4. What does Williamson agree to allow Livingston to do?

5. Where does Livingston go after the dealings with Percy?

(see the answer keys)

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