Which 1720 company became the best-known symbol of Britain’s South Sea Bubble?

The South Sea Company became the best-known symbol of Britain’s South Sea Bubble in 1720.

Founded in 1711, the company received a monopoly over British trade with parts of Spanish South America in exchange for taking on government debt. Its actual commercial prospects were limited, but promotional claims and political connections helped push its share price dramatically higher.

By 1720, investors were buying shares amid widespread speculation. The price rose from about £100 early in the year to nearly £1,000 in August before collapsing by the end of the year. Many investors, including prominent figures, suffered heavy losses.

The episode also involved other speculative ventures, including John Law’s Mississippi Company in France. The South Sea Bubble is therefore not the name of every 1720 market excess; it specifically refers to the British boom and collapse centered on the South Sea Company.