The company at the center of the 1720 South Sea Bubble was the South Sea Company.
Founded in 1711, the company received a British government monopoly over trade with Spanish South America, although the practical commercial opportunity was far smaller than many investors believed. It also took on government debt, and its shares became the focus of a speculative boom in 1720.
Share prices rose dramatically as the company promoted its prospects and investors rushed to participate. Parliament passed the Bubble Act during the frenzy, restricting some companies and adding to the atmosphere of exclusivity. By late 1720, confidence broke, the share price collapsed, and many investors suffered severe losses.
The South Sea Bubble was part of a wider European speculative episode that also involved France’s Mississippi Company. The scandal damaged public trust and led to investigations. It is often remembered not simply as a company failure, but as an early example of promotional claims, easy credit, political connections, and crowd psychology combining in a market boom.