What was the name of the company at the center of Britain’s South Sea Bubble crash of 1720?

The South Sea Company was at the center of Britain’s South Sea Bubble crash of 1720. Its shares rose dramatically before collapsing and ruining many investors.

Founded in 1711, the company received a government-backed monopoly over trade with Spanish South America in exchange for assuming part of Britain’s government debt. In practice, its commercial opportunities were far smaller than investors imagined because of war and Spanish restrictions.

The company’s directors promoted ambitious prospects, and Parliament approved a plan allowing it to convert government debt into shares. Speculation spread through London, with prices rising from roughly £100 in early 1720 to more than £1,000 in August before falling sharply.

The collapse caused financial distress and a political scandal. The South Sea Bubble is often discussed alongside France’s Mississippi Bubble, which also burst in 1720, but they were separate companies and schemes.