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- South_Sea_Company abstract "The South Sea Company (officially The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing) was a British joint-stock company founded in 1711, created as a public-private partnership to consolidate and reduce the cost of national debt. The company was also granted a monopoly to trade with South America, hence its name. At the time it was created, Britain was involved in the War of the Spanish Succession and Spain controlled South America. There was no realistic prospect that trade would take place and the company never realised any significant profit from its monopoly. Company stock rose greatly in value as it expanded its operations dealing in government debt, peaking in 1720 before collapsing to little above its original flotation price; this became known as the South Sea Bubble.The Bubble Act 1720 (6 Geo I, c 18), which forbade the creation of joint-stock companies without royal charter, was promoted by the South Sea company itself before its collapse.A considerable number of people were ruined by the share collapse, and the national economy greatly reduced as a result. The founders of the scheme engaged in insider trading, using their advance knowledge of when national debt was to be consolidated to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the Acts of Parliament necessary for the scheme. Company money was used to deal in its own shares, and selected individuals purchasing shares were given loans backed by those same shares to spend on purchasing more shares. The expectation of vast wealth from trade with South America was used to encourage the public to purchase shares, despite the limited likelihood this would ever happen. The only significant trade that did take place was in slaves, but the company failed to manage this profitably.A parliamentary enquiry was held after the crash to discover its causes. A number of politicians were disgraced, and people found to have profited unlawfully from the company had assets confiscated proportionately to their gains (most had already been rich men and remained comfortably rich). The company was restructured and continued to operate for more than a century after the Bubble. The headquarters were in Threadneedle Street at the centre of the financial district in London, in which street today can be found the Bank of England. At the time of these events this also was a private company dealing in national debt, and the crash of its rival consolidated its position as banker to the British government.".
- South_Sea_Company thumbnail South_Sea_Bubble.jpg?width=300.
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- South_Sea_Company wikiPageWikiLink Category:1711_establishments_in_Great_Britain.
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- South_Sea_Company wikiPageWikiLink Category:Corruption_in_the_United_Kingdom.
- South_Sea_Company wikiPageWikiLink Category:Defunct_companies_of_the_United_Kingdom.
- South_Sea_Company wikiPageWikiLink Category:Economic_bubbles.
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- South_Sea_Company wikiPageWikiLink Category:History_of_banking.
- South_Sea_Company wikiPageWikiLink Category:Political_scandals_in_the_United_Kingdom.
- South_Sea_Company wikiPageWikiLink Catherine_Barton.
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- South_Sea_Company wikiPageWikiLink Charles_VI,_Holy_Roman_Emperor.
- South_Sea_Company wikiPageWikiLink Convention_of_Pardo.
- South_Sea_Company wikiPageWikiLink Corporation.
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- South_Sea_Company wikiPageWikiLink East_India_Company.
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- South_Sea_Company wikiPageWikiLink Edward_Harley_(1664–1735).
- South_Sea_Company wikiPageWikiLink Extraordinary_Popular_Delusions_and_the_Madness_of_Crowds.
- South_Sea_Company wikiPageWikiLink File:Bubble.folly.jpg.
- South_Sea_Company wikiPageWikiLink First_Lord_of_the_Treasury.
- South_Sea_Company wikiPageWikiLink Fraud.
- South_Sea_Company wikiPageWikiLink Föhr.
- South_Sea_Company wikiPageWikiLink George_Caswall.
- South_Sea_Company wikiPageWikiLink George_Granville,_1st_Baron_Lansdowne.
- South_Sea_Company wikiPageWikiLink George_III_of_the_United_Kingdom.
- South_Sea_Company wikiPageWikiLink George_II_of_Great_Britain.
- South_Sea_Company wikiPageWikiLink George_IV_of_the_United_Kingdom.
- South_Sea_Company wikiPageWikiLink George_I_of_Great_Britain.
- South_Sea_Company wikiPageWikiLink Gerald_Isaacs,_2nd_Marquess_of_Reading.
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- South_Sea_Company wikiPageWikiLink History_of_company_law_in_the_United_Kingdom.
- South_Sea_Company wikiPageWikiLink Hollow_Sword_Blade_Company.
- South_Sea_Company wikiPageWikiLink Impeachment.
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- South_Sea_Company wikiPageWikiLink Isaac_Newton.
- South_Sea_Company wikiPageWikiLink Jamaica.
- South_Sea_Company wikiPageWikiLink James_Craggs_the_Elder.
- South_Sea_Company wikiPageWikiLink James_Craggs_the_Younger.
- South_Sea_Company wikiPageWikiLink James_Francis_Edward_Stuart.
- South_Sea_Company wikiPageWikiLink James_Stanhope,_1st_Earl_Stanhope.
- South_Sea_Company wikiPageWikiLink John_Aislabie.
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- South_Sea_Company wikiPageWikiLink John_Campbell,_2nd_Duke_of_Argyll.
- South_Sea_Company wikiPageWikiLink John_Churchill,_1st_Duke_of_Marlborough.
- South_Sea_Company wikiPageWikiLink John_Hanbury_(1664–1734).
- South_Sea_Company wikiPageWikiLink John_Law_(economist).
- South_Sea_Company wikiPageWikiLink John_Leveson-Gower,_1st_Earl_Gower.
- South_Sea_Company wikiPageWikiLink John_Philipson.
- South_Sea_Company wikiPageWikiLink Joint-stock_company.
- South_Sea_Company wikiPageWikiLink List_of_Acts_of_the_Parliament_of_Great_Britain,_1707–19.