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Words: | Submitted: Mon Jun 19 2006
... the South Sea Company sought to drive the price of its stock up. The share price of the South Sea Company was kept artificially high through a number of different means. This included false rumors, the availability of credit, and the issuance of notional stocks, the issuing of extra stock, and the lending of money to purchase stock. The spreading of false rumors helped keep the price of south sea stock artificially high. These rumors of increased trading prospects with Spain and of future opportunities that were yet to be realized created a storm among the traders allowing the price of South Sea Stock to rise higher. Most investors were caught up in the frenzy of the South Sea Company and believed stories that were far from the truth. In reality, only a few slave-trade voyages took place, resulting in little profit, and when England went to war with Spain in ...
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