South Sea Company shares reached a peak price of £1,000 during the South Sea Bubble in 1720.
The company’s shares rose spectacularly as investors were attracted by ambitious claims about trade with Spanish America and by a government arrangement that converted public debt into South Sea Company stock. Parliamentary approval and influential supporters helped fuel confidence.
The shares climbed from about £128 in January 1720 to £1,000 in late August. The rise was not supported by comparable commercial results, and the company’s actual trading opportunities were restricted by Spain’s control of access to its American colonies.
The price then collapsed. Investors who had bought at elevated levels faced heavy losses, and the crisis damaged public confidence in joint-stock companies. The bubble also led to parliamentary investigations and legal controversy involving company directors and public officials.