Which 18th-century British trading company collapsed during the South Sea Bubble?

The 18th-century British company at the center of the South Sea Bubble was the South Sea Company.

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 smaller than many investors imagined. It also converted government debt into company shares, linking public finance with speculative investment. Promotional claims and rising prices attracted people who hoped to profit from the boom.

The bubble burst in 1720, causing severe losses when confidence collapsed and share prices fell. The scandal damaged investors, politicians, and company directors, and Parliament investigated the affair. The South Sea Bubble is often mentioned alongside France’s Mississippi Bubble because both were major speculative episodes in 1720, but they involved different companies and countries. The South Sea Company did not simply disappear immediately; it was reorganized and retained limited government-related functions for years.