What was the main financial asset at the center of the 1720 South Sea Bubble crash?

South Sea Company shares were the main financial asset at the center of the 1720 South Sea Bubble crash.

The South Sea Company was founded in 1711 and received a monopoly over British trade with Spanish South America in exchange for taking on government debt. In practice, its commercial prospects were far less valuable than the excitement surrounding its shares. Company directors promoted expectations of enormous profits, and investors bought stock at rapidly rising prices.

South Sea shares climbed from about £100 early in 1720 to more than £1,000 later that year. Confidence then collapsed, and the price fell dramatically. The losses ruined many investors and exposed corruption, insider dealing, and unrealistic financial claims.

The South Sea Bubble occurred alongside the Mississippi Bubble in France, but the two were separate schemes. The episode also led to political scandal and legislation restricting the formation of joint-stock companies. The company itself survived for decades afterward, though its speculative boom had ended.