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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. Why did Livingston refuse the offer of partnership with Percy?

2. When can one only sell stock?

3. What should one decide to do in order to make money?

4. Who convinces Livingston that Union Pacific is manipulating him?

5. Why does Livingston take his profit out so fast?

Short Essay Questions

1. Why does Livingston say patterns can be used and who uses them well?

2. What does Livingston discuss concerning stocks in Chapter V?

3. What happens to Livingston in St. Louis?

4. How did Livingston make a lot of money in cotton?

5. What lesson does Livingston finally learn about markets?

6. What happens when Livingston first comes back from St. Louis?

7. What's the difference between trading on Wall Street and bucket shops and how does it affect Livingston?

8. What commodities is Livingston trading and how is that going?

9. What kind of trader does Livingston hear had a bad loss and what does he do about it?

10. Why does Livingston take so long to figure out the stock market and what happens then?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Eventually the three men who own so much of the stock get angry with him for not raising the price and selling their stock, too. Livingston considers there is never any point in getting angry at the market.

1. Why do you think the men were angry at Livingston? Use examples from the book to support your answer.

2. Do you think what Livingston did with Consolidated Stove was immoral? Why or why not? Use examples from the book to support your answer.

3. Why do you think Livingston says there's no point in getting angry at the market? Use examples from the book to support your answer.

Essay Topic 2

Livingston gives a number of his opinions on the stock market.

1. Discuss Livingston 's opinions of three topics. Do you agree or disagree with him? Why?

2. Compare and contrast Livingston's opinions from this book with what you might imagine he would think today in the 21st century. How do you think his opinions would change? Would remain the same? Explain fully.

3. Discuss how you think Livingston's view on several topics from this essay informs his life as a trader.

Essay Topic 3

As soon as he has most of the cotton, the price begins to rapidly rise and he makes a great deal of paper profit. The problem now is to convert that profit to cash, because when one has most of the market, as soon as one starts selling it the price begins to drop.

1. What do you think is meant by the term "paper profit" in the above sentence? Use examples from the book to support your answer.

2. Why do you think the price of a stock starts to drop when the stock is being sold? Use examples from the book to support your answer.

3. Would it be possible that someone could be very wealthy on paper but not have enough money to buy a television with cash? Why or why not?

(see the answer keys)

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