What nickname is commonly given to the 1720 collapse centered on Britain’s South Sea Company?

The 1720 collapse centered on Britain’s South Sea Company is commonly called the South Sea Bubble.

The South Sea Company received rights connected with British government debt and promoted expectations of enormous trade profits with Spanish America. Its shares rose dramatically in 1720, attracting aristocrats, merchants, and ordinary investors. The company’s actual commercial prospects were far smaller than the public excitement suggested.

When confidence weakened, the share price collapsed. Many investors suffered heavy losses, and the scandal damaged public trust in financial promoters and government-connected companies. Parliament investigated the company’s directors and uncovered corruption and bribery.

The South Sea Bubble occurred alongside France’s Mississippi Bubble, another famous speculative collapse. They are often discussed together, but they were separate schemes. Tulip Mania in the Dutch Republic was also a different episode, occurring more than eighty years earlier.