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

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

Founded in 1711, the company received a government-backed monopoly over trade with Spanish South America, although its realistic trading opportunities were limited. Its shares surged in 1720 as investors were encouraged by optimistic claims and a scheme to convert government debt into company stock.

The price rose from roughly £100 in January 1720 to more than £1,000 in August before collapsing. By December, shares had fallen to around £124. Many investors suffered ruin, and the scandal damaged public confidence in company promotion and government oversight.

The same year also saw the collapse of John Law’s Mississippi Company in France. Those events are related but distinct bubbles. The South Sea episode helped inspire later debates about speculation, insider dealing, corporate governance, and the dangers of buying assets solely because prices are rising.