Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • December 2007 (Revised December 2008)
  • Case
  • HBS Case Collection

The South Sea Company (A)

By: David A. Moss, Eugene Kintgen and Agnieszka Rafalska
  • Format:Print
  • | Pages:20
ShareBar

Abstract

In early 1720, the South Sea Company and the Bank of England were cometing for the right to issue new shares and to exchange those shares for government bons that were then in the hands of the public. The British government had already executed two such debt conversion with the South Sea Company. Most individuals who had converted bonds for shares in 1711 and 1719 had seen their South Sea shares appreciate in the meantime, and the government had lowered its debt servicing costs as a result of these two conversions. The conversion under consideration in 1720, however, would be ona much larger scale. In time, the South Sea Company won the bidding war, and the House of Commons approved its debt conversion plan. Now it was up to the House of Lords to approve or reject the deal.

Keywords

Borrowing and Debt; Debt Securities; Stock Shares; Financial Strategy; Bids and Bidding; Business and Government Relations; Banking Industry; Financial Services Industry; Great Britain

Citation

Moss, David A., Eugene Kintgen, and Agnieszka Rafalska. "The South Sea Company (A)." Harvard Business School Case 708-005, December 2007. (Revised December 2008.)
  • Educators
  • Purchase

About The Author

David A. Moss

Business, Government and the International Economy
→More Publications

More from the Authors

    • 2020
    • Faculty Research

    The U.S. Secession Crisis as a Breakdown of Democracy

    By: David Moss and Dean Grodzins
    • 2017
    • Faculty Research

    Democracy: A Case Study

    By: David Moss
    • February 2016 (Revised July 2017)
    • Faculty Research

    An Australian Ballot for California?

    By: David Moss, Marc Campasano and Dean Grodzins
More from the Authors
  • The U.S. Secession Crisis as a Breakdown of Democracy By: David Moss and Dean Grodzins
  • Democracy: A Case Study By: David Moss
  • An Australian Ballot for California? By: David Moss, Marc Campasano and Dean Grodzins
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Digital Accessibility
Copyright © President & Fellows of Harvard College