Share Swaps - The South Sea Company

The south sea company proposed another round of debt for equity swaps, and also loaned the british government roughly half a million pounds. Then parliament passed an act for making forth new exchequer bills,. And under this act, the South Sea Company acquired roughly 31 point five million pounds in government debt which it was going to convert into shares. The promised returns on this were huge. They would pay investors a 30 % dividend by the end of 17 20, and then that was supposed to jump to 50 % for the ten years after that. That probably sounds but too good to be true. Spoileron don done.