The South Sea Company

The South Sea Company was a British company established in 1711, aiming to trade in South America and manage national debt. It gained a monopoly on trade in the South Seas and promised investors high profits. However, its boom was driven by speculative frenzy, and it falsely inflated the company's value. When confidence collapsed in 1720, many investors suffered heavy losses, leading to a financial crisis known as the South Sea Bubble. The event highlighted the dangers of speculative bubbles and the importance of regulation.