Which company was at the center of the 1720 South Sea Bubble scandal in Britain?

The South Sea Company was at the center of the 1720 South Sea Bubble scandal in Britain.

Founded in 1711, the South Sea Company received a government-backed monopoly over British trade with Spanish South America. In practice, the expected commercial opportunities were far smaller than promoters suggested. The company also took on part of Britain’s government debt, which helped connect its shares to national finance.

In 1720, enthusiasm for the company drove its share price sharply upward. Directors and influential figures promoted expectations of enormous profits, while Parliament approved a plan that expanded the company’s role in converting government debt. Investors bought shares at increasingly inflated prices.

The bubble burst later that year, causing financial ruin for many shareholders and provoking a political scandal. Parliamentary investigations found corruption and bribery involving company directors and public officials. The South Sea Bubble is frequently discussed alongside France’s Mississippi Bubble, but they were separate schemes; the Mississippi Company operated chiefly in France.