In the frenzied atmosphere of people's desire to get rich, Nanhai Company monopolized trade in name only, and nobody cared. The company's share price rose from 65438 on 10/28 to 330 March, 890 June and 0/000 July. Never before have so many people become so rich in such a short time! Inspired by the "South China Sea Effect", many companies have also introduced their own "new inventions" that are said to bring "rolling money", such as perpetual motion machine, new soap, extracting sunlight from cucumbers and "a project with great advantages but no one can explain it clearly at the moment" ... All the stocks have been bought, and all the stocks are worth a hundred times.
In the end, the senior management of Nanhai Company felt that the gap between the company's share price and operating performance was outrageous and decided to sell all the shares of the company.
As soon as the news leaked, the stock price fell immediately. Soon, the whole market was in a state of extreme panic because of the stock price crash. The efforts of government officials to rebuild investment confidence have also failed. Public confidence in the market has completely collapsed and cannot be restored. The stocks of countless companies have become a pile of waste paper.
The big losers in the "south sea bubble" crisis include the famous genius scientist Newton. Afterwards, he sighed: "I can calculate the motion of celestial bodies, but I can't calculate the crazy behavior of people."
newton