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

Multiple Choice Questions

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

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

3. What does Livingston wonder when he is flat broke again?
(a) How he can make his money back.
(b) How he made so many mistakes.
(c) If his brother has some money to lend him.
(d) Whether he should switch to a different work.

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

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

6. What does Livingston think the purpose of split stocks is?
(a) To confuse traders.
(b) To make people think the company is doing well.
(c) To sell the spilt stocks a higher price combined than the original stock.
(d) To make people think the company is doing bad.

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

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

9. What does an operator tell people when cornering a market?
(a) The price will stay the same.
(b) The price is going to drop.
(c) The operator doesn't usually tell anyone.
(d) The price is going to raise.

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

11. 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 sell short and the price drops.
(d) When they make too much money.

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

13. What has the market done about charlatans since Livingston has been trading?
(a) Tells the newspapers what stocks are bad.
(b) Weeds them out.
(c) Has them arrested.
(d) Nothing.

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

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

Short Answer Questions

1. What does Livingston say is illegal now?

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

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

4. What is the stock Livingston buys to restart his career?

5. What does Livingston say one should do when a stock that's being sold is dropping?

(see the answer keys)

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