Which company became the most famous failed enterprise of the South Sea Bubble in 1720?

The South Sea Company became the most famous failed enterprise of the South Sea Bubble in 1720.

Founded in 1711, the company received a British government monopoly over trade with Spanish South America, although its actual commercial opportunities were far smaller than investors imagined. It also took on part of Britain’s government debt, encouraging speculation in its shares. Promotional claims and rapidly rising prices attracted investors from across society.

The share price rose dramatically during 1720 before collapsing by the end of the year. The collapse ruined many investors and triggered a political scandal in Britain. Parliamentary investigations found corruption involving company directors and public officials. The South Sea Bubble occurred in the same year as the Mississippi Bubble in France, but the two were separate schemes. The South Sea Company continued in a reduced form after the crash and was finally dissolved in the nineteenth century.