The South Sea Company ,formed in 1711 in London to supply slaves to Spanish America, collapses, c. September 15, 1720, leading to a financial crisis in England and affecting the stock market.
The company had bought from the British government, the rights to supply slaves to Spanish America (acquired by Britain at the Treaty of Utrecht), for a significant amount of money and went on to sell stock to the public. Speculators paid inflated prices for the stock, leading eventually to the company’s spectacular financial collapse. A large number of people were ruined by the share collapse, and the national economy was greatly reduced as a result. A parliamentary inquiry held afterwards, found that many had profited unlawfully from the company and had their assets confiscated.
