The South Sea Company became the best-known symbol of the South Sea Bubble when its share price collapsed in 1720. The company had been granted a monopoly over British trade with Spanish South America.
Much of the company’s appeal came from speculation and political promotion rather than proven commercial success. In 1720, Parliament approved a plan allowing the company to assume part of Britain’s government debt, and its shares rose rapidly as investors expected immense future profits.
The price reached about £1,000 in August 1720 before falling sharply. Investors across social classes lost money, and the scandal damaged public confidence in British financial institutions. Parliament investigated the episode, uncovering bribery and corruption.
The French Mississippi Company experienced a related speculative collapse in the same period, but it was a separate scheme. The South Sea Bubble is specifically associated with Britain and the South Sea Company.