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单词 South Sea Bubble
释义
South Sea Bubble

World History
  • An English financial disaster in which the South Sea Company took over most of the National Debt in 1720 and needed a rise in the value of the shares of the Company. This was achieved not by past trading profits, but by rumours of future ones. Some politicians and even members of the court were bribed with cheap or free South Sea Company shares to promote the company’s interests. The shares increased ten-fold in value, and expectations of high dividends rose accordingly. When confidence collapsed, the South Sea Company’s shares fell to less than 10% of their peak value, and thousands of investors were ruined. Sir Robert Walpole began his long period of office by saving the company and restoring financial stability.


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