Which 1720 British company’s collapse became a classic early stock-market bubble?

The South Sea Company’s collapse in 1720 became a classic early stock-market bubble.

The company received a British government monopoly over trade with Spanish South America, although its actual trading prospects were far less impressive than promotional claims suggested. Its shares rose dramatically as investors were attracted by speculation and the promise of easy wealth.

When confidence broke, the price collapsed and ruined many investors. The episode became known as the South Sea Bubble. It is often discussed alongside France’s Mississippi Bubble, which also burst in 1720, but the two were separate schemes. The British Parliament investigated the scandal, and prominent figures were accused of corruption.