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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. When should one stay clear of a stock?

2. What does Livingston believe about the cotton market when he and Percy are discussing it?

3. What's the difference between working on the stock exchange and the bucket shops?

4. What must a successful stock trader do?

5. What kind of trading is done at a bucket shop?

Short Essay Questions

1. What does Livingston say makes a successful stock trader?

2. What does Livingston say again about the bucket shops and Wall Street?

3. What do customers in bucket shops do?

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

5. What happens in October of 1907?

6. What happens a few days after he sells Union Pacific and how did that help Livingston?

7. What kind of hunch does Livingston talk about in Chapter VI?

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

9. What does Livingston say one should do in a rising or falling market?

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

One can only sell shares of a stock if there are willing buyers. There is only so much stock for a particular company, and individual traders can strongly affect the market through their actions.

1. What do you think would happen to a stock if everyone wanted to sell but no one wanted to buy? Use examples from the book to support your answer.

2. Do you think given the size of the market when Livingston was a trader and now that individual traders can still affect the market? Why or why not?

3. Given the difference in size between the market of Livingston's day and the present time, discuss ways in which his advice might not be relevant today.

Essay Topic 2

The book, REMINISCENCES OF A STOCK OPERATOR, is considered a classic in business education and is required reading in most business colleges.

1. Why do you think the above statement is true?

2. After reading REMINISCENCES OF A STOCK OPERATOR do you think you understand more of the stock market and the economy than before you read it? Why or why not?

3. Do you think it is too outdated to be of any use to students today? Why or why not?

Essay Topic 3

Further, bankers beg Livingston not to sell any more stock, as it might increase the general panic, throwing the whole system into irrecoverable disarray. Livingston knows this would make it impossible for him to translate his profits into cash. Livingston sends in orders to buy a vast amount of stock, beginning a market recovery.

1. Given what you know of Livingston's character do you think buying stock in this situation was self motivated or was there an altruistic component? Why or why not?

2. Why do you think the bankers asked Livingston not to sell anymore stock? How would that relate to the creation of the 1930 depression? Use examples from the book to support your answer.

3. Do you think, given what happened in 1930, the market system could ever be thrown into irrecoverable disarray? Why or why not?

(see the answer keys)

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