What was the name of the speculative company at the center of Britain’s 1720 stock-market crash?

The South Sea Company was the speculative company at the center of Britain’s 1720 stock-market crash.

Founded in 1711, the company received a government-backed monopoly over British trade with parts of Spanish South America. In practice, its commercial opportunities were much more limited than many investors imagined. The company also took on government debt, and its shares became the focus of intense speculation.

Its share price rose rapidly during 1720 as investors bought shares partly because prices were rising. The company’s promotion helped inspire a wider boom in new ventures, including dubious schemes that attracted money from the public. Parliament eventually passed the Bubble Act, though the collapse had already begun.

When confidence broke, the share price plunged and many investors were ruined. The South Sea Bubble is often grouped with John Law’s Mississippi Bubble in France, which collapsed during the same broad speculative era. The episode influenced later debates about financial promotion, insider dealing, and government-backed speculation.