Which British company’s shares collapsed in 1720 during the South Sea Bubble?

The South Sea Company’s shares collapsed in 1720 during the South Sea Bubble.

Founded in 1711, the company received a government-backed monopoly over trade with Spanish South America, although its practical trading opportunities were limited. Investors were attracted by plans to convert government debt into company shares and by promotional claims about commercial riches.

The company’s share price rose dramatically during 1720, alongside speculation in many other ventures. When confidence weakened, selling spread rapidly and the price fell. The episode became one of the best-known early financial bubbles.

The South Sea Bubble is often discussed alongside France’s Mississippi Bubble, but they were separate schemes. The South Sea Company was British, while the Mississippi Company was associated with John Law and the French regent’s financial system.