Which 18th-century British company became central to the South Sea Bubble crash of 1720?

The South Sea Company became central to the South Sea Bubble crash of 1720.

Founded in 1711, the company received a monopoly over British trade with Spanish South America in exchange for assuming part of the national debt. Its shares soared in 1720 as investors imagined enormous profits, even though the company’s actual commercial prospects were far more limited than the speculation suggested.

The collapse damaged investors, including prominent figures, and exposed corruption involving political insiders and company promoters. The South Sea Bubble unfolded alongside the Mississippi Bubble in France, associated with John Law’s financial system. The episode helped establish the South Sea Company as a classic example of speculative excess, but the company itself did not represent the entire British economy or all 1720 financial activity.