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

Multiple Choice Questions

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

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

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

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

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

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

7. 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) Getting arrested.
(d) Buying or selling at a good price.

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

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

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

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

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

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

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

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

Short Answer Questions

1. What does Livingston do to retaliate against the insiders?

2. What does Livingston say a good broker letter should be?

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

4. What does Livingston suggest is the reason for urges?

5. What does everyone finally think about Tropical Trading?

(see the answer keys)

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