A Random Walk Down Wall Street

by Burton G. Malkiel

On April 12, 1720, five days after the bill became law, the South Sea Company sold a new issue of stock at £300. The issue could be bought on the installment plan—£60 down and the rest in eight easy payments. Even the king could not resist; he subscribed for stock totaling £100,000. Fights broke out among other investors surging to buy. To ease the public appetite, the South Sea directors announced another new issue—this one at £400. But the public was ravenous. Within a month the stock was £550. On June 15 yet another issue was floated. This time the payment plan was even easier—10 percent down and not another payment for a year. The stock hit £800. Half the House of Lords and more than half the House of Commons signed on. Eventually, the price rose to £1,000. The speculative craze was in full bloom.

Reliance stock issue circa June 2020?!