South Sea Company

High school (ages 12+)
History & Culture

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Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/south-sea-company

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. When was the South Sea Company built?1711
2. What is the South Sea Company known for?The South Sea Bubble, a major financial crisis in 1720
3. What is the location?Great Britain
4. What is the main city?London
5. Why did the South Sea Company try to trade with the South Seas?The company believed it could make a lot of money by trading in America, but real trade was very limited because Spain and Portugal controlled the area.
6. How did the South Sea Bubble happen?Share prices rose very high because people thought the company would make huge profits. The company didn't actually earn that much, and when the prices fell, many people lost money.

Joint-stock company: A business entity where shares can be bought and sold by the public, with liability limited to the amount invested.
National Debt: The total amount of money owed by a country's government to its creditors.
Speculative Bubble: A situation where asset prices rise rapidly due to hype and speculation, eventually crashing when prices are no longer sustainable.
Monopoly: Exclusive control over the supply or trade of a particular commodity or service in a particular area.