Which 1720 company became the symbol of Britain’s speculative stock-market bubble?

The South Sea Company became the symbol of Britain’s speculative stock-market bubble in 1720.

The company received a government-backed monopoly over British trade with parts of Spanish South America and proposed taking over government debt. Investors bought shares enthusiastically, encouraged by promotional claims about the company’s commercial prospects. Its share price rose dramatically during 1720.

The boom collapsed later that year as confidence weakened and investors tried to sell. The resulting South Sea Bubble ruined many shareholders and caused a political scandal. Parliament investigated the company’s directors and alleged corruption among officials who had supported the scheme.

The South Sea Bubble was not an ordinary modern stock-market crash. It was an early example of a speculative mania involving shares, credit, and unrealistic expectations. The contemporary Mississippi Bubble in France was a related episode, but it centered on John Law’s Mississippi Company rather than the South Sea Company.