South Sea Company

The South Sea Company was a British trading company founded in 1711, originally intended to trade in South America. It became infamous for its speculative bubble in the early 18th century, where its stock price soared due to promises of profits from trade and government debt. Investors were drawn in, driving prices to extreme highs. However, in 1720, the bubble burst, leading to significant financial losses for many and widespread economic turmoil. This event highlighted the dangers of speculation and led to reforms in British financial regulations. It’s a classic example of economic mania and its consequences.