South Sea Bubble
Definition
Well known stock scam that took place in the United Kingdom in 1720. Thousands of people invested in the South Sea Company because they believed that they had cornered the shipping market based on speculation. The company continued issuing shares while making no profit and eventually collapsed leaving the stock worthless.
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Calculating People's Psychologies"I can calculate the motions of the heavenly bodies, but not the madness of people." Sir Isaac Newton, who sold out profitably during the South Sea Bubble but was tempted back in and lost 20,000 pound ... Read more
