In the early ‘700 while France was going through the Mississippi Bubble, in parallel Great Britain was going through the South Sea Bubble.
The South Sea Company was founded in 1711 with the aim of detecting the British public debt, which amounted to 10 million pounds. The company bore the English public debt and in return received an annual interest paid by the state and the monopoly of trade with the Spanish colonies in South America. To finance the transaction, the company issued, in different tranches, their stocks and each issue took place at rising prices. The eupho-ria towards the issue of stocks and other equity placements occurred in the same period, pushing up the value of the shares and enriching the compa-ny's directors and several politicians (holders of shares and rights on shares of the company).…