1720

South Sea Bubble in Great Britain

Founded in London in 1711, the South Sea Company The company was granted a monopoly to trade with South America, hence its name. The company knows a craze and sees the volume of its issued shares increase, and their prices soar. However, a few months later, it has to face a drop in its share price. Many investors find themselves completely ruined. This stock market crisis is one of the first crashes in history.