Which 1720 British company collapsed in the financial scandal known as the South Sea Bubble?

The South Sea Company collapsed in the 1720 financial scandal known as the South Sea Bubble.

Founded in 1711, the company received a British government monopoly over trade with parts of Spanish South America, although its expected commercial opportunities were far greater than its actual trading activity. It also took on government debt, which helped connect its fortunes to public finance.

Its share price soared in 1720 as investors were encouraged by optimistic claims and speculative enthusiasm. When confidence failed, the price collapsed, ruining many investors and exposing corruption and insider dealing. The crisis also affected banks and other companies caught up in the speculative boom.

The South Sea Bubble was part of a wider European episode that included France's Mississippi Bubble. The two events are often confused because they happened in the same year, but the British scandal centered on the South Sea Company, while the French episode centered on John Law's Mississippi Company.