Which company stood at the center of Britain’s South Sea Bubble, whose shares collapsed in 1720?

The South Sea Company stood at the center of Britain’s South Sea Bubble, whose shares collapsed in 1720.

Founded in 1711, the company received a government-backed monopoly over trade with Spanish South America, although its actual commercial opportunities were far more limited than many investors believed. It also agreed to assume part of the British national debt, linking its fortunes closely to government finance.

Promotional claims and speculative buying pushed the share price dramatically higher in 1720. When confidence broke, the price plunged, ruining many investors and provoking a major political scandal. The episode is often discussed alongside France’s Mississippi Bubble, which involved John Law’s Mississippi Company, but the British collapse centered on the South Sea Company.