Which investment company collapsed in 1720 during Britain’s South Sea Bubble?

The South Sea Company collapsed in 1720 during Britain’s South Sea Bubble.

Founded in 1711, the company received a government-backed monopoly over British trade with Spanish South America, although its actual trading opportunities were far more limited than promotional claims suggested. It also took on government debt, making its shares closely tied to public finance and political influence.

Its share price soared in 1720 as investors chased easy riches and lawmakers supported a boom in speculative company schemes. The price rose from about £100 in January to more than £1,000 in August before confidence broke. The company’s collapse ruined many investors and damaged public trust.

The South Sea Bubble was part of a wider European speculative episode. France’s Mississippi Company experienced a related collapse, but it was a separate enterprise and is not the answer to this question.