The history of Great Britain

South Sea Bubble
Entrepreneurs gradually extended the range of their business around the globe. The South Sea Bubble was a business enterprise that exploded in scandal. The South Sea Company was a joint-stock company in London. Its ostensible object was to grant trade monopolies in South America; but its actual purpose was to renegotiate previous high-interest government loans amounting to £31 million through market manipulation and speculation. It raised money four times in 1720 by issuing stock, which was purchased by about 8,000 investors. The share price kept soaring every day, from £130 a share to £1,000, with insiders making huge paper profits. The Bubble collapsed overnight, ruining many speculators. Investigations showed bribes had reached into high places—even to the king. Robert Walpole managed to wind it down with minimal political and economic damage, although some losers fled to exile or committed suicide.