Which company’s collapse ended Britain’s South Sea Bubble in 1720?

The collapse of the South Sea Company ended Britain’s South Sea Bubble in 1720.

The company received a government-backed monopoly over trade with Spanish South America and proposed taking over part of Britain’s national debt. Its shares soared as investors expected enormous profits, even though the company’s actual trade prospects were limited. Shares rose from roughly £100 early in 1720 to nearly £1,000 in August before confidence broke.

A wave of selling followed, ruining many investors and causing financial distress among prominent figures. Parliament investigated the promotion and corruption surrounding the scheme. The Mississippi Company bubble in France occurred during the same period, which can cause confusion, but it was a separate episode associated with John Law. The South Sea Bubble is an early example of a speculative stock-market boom followed by a sharp collapse.