Which 1720 English company gave its name to the South Sea Bubble?

The South Sea Company gave its name to the South Sea Bubble of 1720.

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

Shares surged in 1720 as investors embraced optimistic expectations. The company’s rise encouraged a wave of speculative ventures, including dubious “bubble” companies formed to attract money without a credible business plan. When confidence broke, South Sea Company shares collapsed, ruining many investors and causing a political scandal.

The South Sea Bubble occurred alongside the Mississippi Bubble in France, associated with John Law’s financial system. These episodes are often grouped as early modern financial bubbles, but they were separate schemes in different countries. The company’s name, not a modern stock exchange, is the key link to the English episode.