Which British company collapsed in 1720 during the South Sea Bubble stock-market crash?

The South Sea Company collapsed in 1720 during the South Sea Bubble stock-market crash. Its shares became the central focus of Britain’s most famous early speculative mania.

The company was founded in 1711 and received a government-backed monopoly over trade with parts of Spanish South America, although its actual commercial opportunities were far more limited than promoters suggested. It also took on British government debt, tying its fortunes to public finance.

Share prices rose dramatically as investors were encouraged by promotional claims and easy speculation. When confidence broke, the price fell rapidly, ruining many investors and creating a political scandal.

The South Sea Bubble was part of a wider European episode that also involved France’s Mississippi Company. The crisis led Parliament to investigate corruption and helped shape later debates about financial regulation and corporate promotion.