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

Multiple Choice Questions

1. What does Williamson agree to allow Livingston to do?
(a) He gives him another stake.
(b) Manipulate the price of cotton.
(c) Buy 500 shares of one stock.
(d) Open an account with him.

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

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

4. What is one of the forces that can cause a stock spectator's plans to go awry?
(a) The government changing regulations.
(b) Forces inherent in the market.
(c) A company collapsing.
(d) The trader calling in sick on the best day to sell.

5. What does Livingston notice about the price of Tropical Trading stock?
(a) The price is way down.
(b) The price has been run up.
(c) The price hasn't changed in four years.
(d) The price fluctuates wildly.

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

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

8. What happens to Livingston after his dealings with Percy Thomas?
(a) He becomes ill.
(b) He moves back into oil stock.
(c) Nothing happens to him.
(d) He gets married.

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

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

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

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

13. What does everyone finally think about Tropical Trading?
(a) The insiders are dishonest.
(b) The stock can't be manipulated.
(c) The parent company is in trouble.
(d) The stock is solid.

14. Why is Livingston frustrated when he leaves Williamson's?
(a) The market is no longer good for making money.
(b) He has no money yet again.
(c) He had to pay Williamson too much interest.
(d) The market is going bull.

15. Who was a famous stock manipulator Livingston mentions?
(a) James R. Keene.
(b) Chester Bollocks.
(c) Rupert W. Hatfield.
(d) Preston N. Roovelt.

Short Answer Questions

1. When was the famous stock manipulator active?

2. Why does Imperial Steel hire Livingston?

3. What does Livingston say is a good method to make a stock look good?

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

5. How does he say one trader made money?

(see the answer keys)

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