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

Multiple Choice Questions

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

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

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

4. What does Livingston do after the Tropical Trading event?
(a) Becomes a stock operator.
(b) Goes back to Boston.
(c) Marries.
(d) Retires.

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

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

7. What kind of regulation is enacted during war time?
(a) No buying of ammunition companies.
(b) No buying of government bonds.
(c) No profiteering in war necessities.
(d) No selling off defense stock.

8. What does any trade do to the price of a stock?
(a) Affects it.
(b) If selling the price goes up.
(c) If buying the price goes down.
(d) Nothing.

9. What did coffee brokers tell Congress about Livingston?
(a) He was trying to corner the market.
(b) He bought coffee from Germany.
(c) He was intimidating them.
(d) He was selling too low.

10. How does Livingston start his job with Imperial Steel?
(a) Buying all of Imperial's stock on the market.
(b) Buying Bethleham Steel.
(c) Selling all of Imperial's free floating stock.
(d) Selling Bethleham Steel.

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

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

13. What happens after Livingston's initial action on behalf of Imperial Steel?
(a) The price slid slightly.
(b) The price bottomed out.
(c) The newspaper reported the company was failing.
(d) Brokers begin buying their stock.

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

15. What does Livingston say is a good method to make a stock look good?
(a) Buy and sell rapidly.
(b) Use inside trading.
(c) Buy a lot of that stock.
(d) Sell most of the stock.

Short Answer Questions

1. Under what condition does David Williamson offer Livingston a stake?

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

3. What does Livingston say a trader needs to make a good decision?

4. What does an operator tell people when cornering a market?

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

(see the answer keys)

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