Which company was at the center of the 1720 South Sea Bubble stock-market crash?

The South Sea Company was at the center of the 1720 South Sea Bubble stock-market crash. Founded in 1711, the British company received a government-backed monopoly over trade with Spanish South America, although its realistic trading prospects were far more limited than public enthusiasm suggested.

The company converted government debt into shares and promoted expectations of enormous profits. Its share price rose rapidly during 1720, attracting aristocrats, merchants, and ordinary investors. Parliament also authorized a Bubble Act that restricted competing joint-stock ventures, further concentrating speculative attention.

When confidence weakened, the share price collapsed, ruining many investors and damaging political reputations. The South Sea Bubble occurred alongside France's Mississippi Bubble, another major speculative episode. The crash helped establish the company’s name as a lasting synonym for financial speculation detached from underlying business value.