Which 1720 British company became the central symbol of the South Sea Bubble?

The South Sea Company became the central symbol of the South Sea Bubble in 1720.

Founded in 1711, the company received a British government monopoly over trade with Spanish South America, although the expected commercial opportunities were limited. It also converted government debt into company shares, linking public finance to speculative enthusiasm.

Its share price rose dramatically during 1720 as investors chased profits and promoters encouraged confidence. The price then collapsed, ruining many investors and causing a political scandal in Britain. Parliament investigated corruption, and several prominent figures were implicated.

The same speculative episode included the Mississippi Company in France and numerous fraudulent ventures in Britain. The phrase “bubble” became closely associated with the cycle of exciting promises, rising prices, and sudden collapse. The event is often called a stock-market crash, though modern financial markets did not yet exist in their present form.