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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. How many people held most of the stock in Consolidated Stove?

2. To what does Livingston attribute his success?

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

4. When was the famous stock manipulator active?

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

Short Essay Questions

1. Is Livingston asked for tips? What does he say?

2. What is one of the primary tools to manipulate a stock?

3. What does Livingston begin to do for a living?

4. What happens to Livingston after he follows Percy's advice?

5. What does Livingston notice about the price of Tropical Trading and what does he do about it?

6. Sum up what Livingston says about cornering the market.

7. How does Livingston feel about hunches?

8. How does a trader test a stock?

9. What does Livingston say about broker letters?

10. What does Livingston say when people say a stock drops because someone sells it?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Livingston gets a strong hunch and cannot shake the urge to sell Union Pacific stock.

1. Do you think it's unwise to sell stock based on a hunch? Why or why not?

2. Just because Livingston's hunch worked out this time do you think he should continue to use hunches? Why or why not?

3. Given the fact that more people have lost money on a hunch then made it, do you think Livingston should have written about hunches? Why or why not?

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

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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