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

Multiple Choice Questions

1. Why does Livingston declare bankruptcy?
(a) To gain money for a stake.
(b) To clear his record off.
(c) To get rid of two persistent creditors.
(d) To be able to retire.

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

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

4. What does Imperial Steel give Livingston as compensation?
(a) One hundred thousand shares.
(b) A seat on the board of directors.
(c) A half a million dollars.
(d) Twenty-five thousand shares.

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

6. Who does Livingston say uses tips to no good ends for their customers?
(a) Banks.
(b) Financial advisors.
(c) Retirement funds.
(d) Stock manipulators and promoters.

7. What is a broker letter?
(a) Letter from insiders to traders.
(b) Letter sent to clients advising them to buy or sell a stock.
(c) Letter from brokers to agents.
(d) Letter from clients to brokers.

8. Under what condition does David Williamson offer Livingston a stake?
(a) That he open an account with them.
(b) That he remember the firm when dealing.
(c) That he pay 5% interest.
(d) That he pay it back double.

9. Why does Livingston say that after 25 years playing the market, it has become more difficult?
(a) There's been a large increase in the number of stocks.
(b) The stocks have become too expensive.
(c) Too many new laws.
(d) There are too many brokers.

10. What does one have to do with profit on paper?
(a) Ignore it.
(b) Let it sit.
(c) Don't count it when figuring up your worth.
(d) Convert it to cash.

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

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

13. Why does Imperial Steel hire Livingston?
(a) To convince people the company is failing.
(b) To buy up the free floating shares.
(c) To make its stock more active and sell its shares.
(d) To get the price lowered due to a hostile take-over.

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

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

Short Answer Questions

1. What does Livingston warn about in the beginning of Chapter XV?

2. What kind of regulation is enacted during war time?

3. From where does Livingston say urges arise?

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

5. How was the company Consolidated Stove formed?

(see the answer keys)

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