[ citation needed ], The Greenland Company had been established by Act of Parliament in 1693 with the object of catching whales in the Arctic. The slaves for the Spanish America were provided by companies that were granted exclusive rights to their trade. [34] This triggered bankruptcies amongst those who had bought on credit, and increased selling, even short selling (i.e., selling borrowed shares in the hope of buying them back at a profit if the price fell). In November 1718 Sub-Governor Bateman and Deputy Governor Shepheard both died. To generate income, in 1713 the company was granted a monopoly (the Asiento de Negros) to supply African slaves to the islands in the "South Seas" and South America.

The rapid economic development of the country after the Dutch Revolt in the years 1585–1620 accompanied by an equally rapid accumulation of a large fund of savings, created the need to invest those savings profitably. [11], At that time, when the continent of America was being explored and colonized, Europeans applied the term "South Seas" only to South America and surrounding waters. New stock would be created at a face value equal to the debt, but the share price was still rising and sales of the remaining stock, i.e. The proposal was accepted in a slightly altered form in April 1720.

Craggs the Elder and Craggs the Younger both died in disgrace; the remainder were impeached for their corruption. This was a pri­vately owned com­pany, char­tered 16 years pre­vi­ously, which had ob­tained a mo­nop­oly as the lender to West­min­ster, in re­turn for ar­rang­ing and man­ag­ing loans to the gov­ern­ment.

A number of politicians were disgraced, and people found to have profited immorally from the company had personal assets confiscated proportionate to their gains (most had already been rich and remained so).

The national debt investigation concluded that a total of £9 million was owed by the government, with no specifically allocated income to pay it off. Thus bonds representing the debt intended to be consolidated under the scheme were available for purchase on the open market at a price that allowed anyone with advance knowledge to buy and resell in the immediate future at a high profit, for as soon as the scheme became publicised the bonds would once again be worth at least their nominal value, as repayment was now more certain a prospect. Among the many companies to go public in 1720 is—famously—one that advertised itself as "a company for carrying out an undertaking of great advantage, but nobody to know what it is". The transactions were recorded by Knight in the names of intermediaries, but no payments were received and no stock issued – indeed the company had none to issue until the conversion of debt began.

In 1722 Henry Elking published a proposal, directed at the governors of the South Sea Company, that they should resume the "Greenland Trade" and send ships to catch whales in the Arctic. The South Sea Company refused to pay those proceeds and the King of Spain retained payment of the compensation until payment from the South Sea Company could be secured.

Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Reporting in 1721, it revealed widespread fraud amongst the company directors and corruption in the Cabinet.

The money went to the victims and the stock of the South Sea Company was divided between the Bank of England and the East India Company.

There were hardly any experienced whalemen remaining in Britain, and the Company had to engage Dutch and Danish whalemen for the key posts aboard their ships: for instance all commanding officers and harpooners were hired from the North Frisian island of Föhr.

One quarter of the profits were to be reserved for the King of Spain. Blunt and Sawbridge remained South Sea directors, and they had been joined by Gibbon and Child. The founders of the scheme engaged in insider trading, by using their advance knowledge of the timings of national debt consolidations to make large profits from purchasing debt in advance.

Those rights were previously held by the Compagnie de Guinée et de l'Assiente du Royaume de la France. The government had become dissatisfied with the service it was receiving and Harley was actively seeking new ways to improve the national finances.

Craggs the Elder and Craggs the Younger both died in disgrace; the remainder were impeached for their corruption.

The South Sea Company could set the conversion price but could not diverge much from the market price of its shares. The South Sea Company was by no means the only company seeking to raise money from investors in 1720. This typically entitles the stockholder to that fraction of the company's earnings, proceeds from liquidation of assets, or voting power, often dividing these up in proportion to the amount of money each stockholder has invested.

Such products were the public bonds, floated by the Dutch governments on a national, provincial, and municipal level; acceptance credit and commission trade; marine and other insurance products; and shares of publicly traded companies like the Dutch East India Company (VOC), and their derivatives.

".

Doch die zunehmenden Probleme der französischen Mississippi-Kompanie befeuerten die Entwicklung weiter, da viele Investoren ihr Geld aus Frankreich abzogen und es stattdessen in England investierten. Der Kurs der Aktie des Unternehmens im Nennwert von 100 Pfund lag Anfang 1720 noch bei 120 Pfund.

The individual received an option to sell his stock back to the company at any future date at whatever market price might then apply. This avoided the risk that debt might become repayable at some future point just when the government needed to borrow more, and could be forced into paying higher interest rates. On arrival of the first cargoes, the local authorities refused to accept the Asiento, which had still not been officially confirmed there by the Spanish authorities.

He made very detailed suggestions about how the ships should be crewed and equipped. Richard A. Kleer, "Riding a wave: the Company’s role in the South Sea Bubble" (2015) p 165. Sie ereignete sich zur selben Zeit wie die Mississippi-Blase in Frankreich. Others invested money, including the Treasurer to the Navy, Hampden, who invested £25,000 of government money on his own behalf.[29]. [11]. The company's failure to produce accounts for all the annual ships but the first one, and lack of payment of the proceeds to the Spanish Crown from the profits for all the annual ships, resulted in no more permits being granted to the Company's ships after the Royal Caroline trip of 1732–1734. By contrast, any MP could join in with an 'open' committee and vote on its proceedings.) This monopoly contract was called the slave Asiento.

What may have supported the company's high multiples (its P/E ratio) was a fund of credit (known to the market) of £70 million available for commercial expansion which had been made available through substantial support, apparently, by Parliament and the King. Any ship of more than 500 tons owned by the Company was to have a Church of England clergyman on board. Negotiations took place between Aislabie and Craggs for the government and Blunt, Cashier Knight and his assistant and Caswell. They also agreed that the interest rate would decrease after four years instead of seven, and agreed to sell on behalf of the government £1 million of Exchequer bills (formerly handled by the Bank). The company continued its trade (when not interrupted by war) until the end of the Seven Years' War (1756–1763). The company was heavily dependent on the goodwill of government; when the government changed, so too did the company board. War was the inevitable result”. The original suggestion for the South Sea scheme came from William Paterson, one of the founders of the Bank of England and of the financially disastrous Darien Scheme. The company now embarked on a show of gratitude to its friends.

[16], The Treaty of Utrecht of 1713 granted Britain an Asiento de Negros lasting 30 years to supply the Spanish colonies with 4,800 slaves per year. Evans, Martin H. (2005). Der Administrator dieser Lösung war der Schatzkanzler Robert Walpole (1676–1745), der dadurch seine große Macht in Großbritannien begründete. The success was shortly followed by another larger lottery, "The Two Million Adventure" or "The Classis", with tickets costing £100, with a top prize of £20,000 and every ticket winning a prize of at least £10. A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity and recognized as such in law for certain purposes.

The Asiento was granted in the name of Queen Anne and then contracted to the company.

Huge bribes were given to politicians to support the Acts of Parliament necessary for the scheme. The South Sea Company could set the conversion price but could not diverge much from the market price of its shares.

Laut einem Bericht der New York Times vom Dezember 2014[2] zahlt die britische Staatskasse 2014 noch immer Zinsen auf einen kleinen Teil der damaligen Anleihen. The company's assets in South America were seized, at a cost claimed by the company to be £300,000.

As by the end of the 17th century structural problems in the Dutch economy precluded profitable investment of this capital in domestic Dutch sectors, the stream of investments was redirected more and more to investment abroad, both in sovereign debt and foreign stocks, bonds and infrastructure.

However, its main function was always managing government debt, rather than trading with the Spanish colonies. The Asiento de Negros was a monopoly contract between the Spanish Crown and various merchants for the right to provide African slaves to colonies in the Spanish Americas. [4] Its trading activities therefore offered a financial motivation for investment in the company.

[26], Plans were made for a new scheme to take over most of the unconsolidated national debt of Britain (£30,981,712) in exchange for company shares. Among those implicated were John Aislabie (the Chancellor of the Exchequer), James Craggs the Elder (the Postmaster General), James Craggs the Younger (the Southern Secretary), and even Lord Stanhope and Lord Sunderland (the heads of the Ministry). Jahrhunderts eine florierende Wertpapierbörse entwickelt.

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