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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) Bad advice.
(b) Useful tools.
(c) A way for the lay person to get rich.
(d) Incompetent advice.

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

3. 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 brokers to agents.
(d) Letter from clients to brokers.

4. What actually happens when Livingston is working under an account at Williamson's?
(a) He makes millions of dollars.
(b) They squeeze him for the loan payment.
(c) They keep asking him to do favors.
(d) They constantly criticize his work.

5. Why does Livingston say traders are often vilified in the press and by other traders?
(a) When they sell short and the price drops.
(b) When they corner a market.
(c) When they make too much money.
(d) When they hold onto food crops.

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

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

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

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

10. When Livingston is looking at the price of Tropical Trading what is the market doing?
(a) Going up.
(b) Going down.
(c) Fluctuating wildly.
(d) Staying the same.

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

12. 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.

13. What is one of the main problems of people paying you to do something on the market?
(a) Getting bored.
(b) Making less money.
(c) Buying or selling at a good price.
(d) Getting arrested.

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

15. How does he say one trader made money?
(a) Getting tips from the newspaper.
(b) Doing the opposite of any tip.
(c) Selling tips to others.
(d) Getting tips from insiders.

Short Answer Questions

1. Why does Livingston declare bankruptcy?

2. For what was the famous stock manipulator most known?

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

4. Who offers to buy Livingston's shares of Imperial Steel?

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

(see the answer keys)

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