What was the name of the 1720 British speculation crisis involving the South Sea Company?

The 1720 British speculation crisis involving the South Sea Company was the South Sea Bubble.

The South Sea Company received a government-backed monopoly over trade with Spanish South America, although its actual trading opportunities were limited. In 1720, the company proposed converting government debt into shares, and enthusiasm for its prospects drove its share price dramatically higher.

Investors rushed into South Sea stock, and speculation spread beyond the company itself. The price reached about £1,000 in August 1720 before collapsing later that year. Many people, including prominent figures, suffered severe losses when confidence failed.

Parliament investigated the episode and found corruption among company directors and government officials. The crisis also affected other speculative ventures, including unauthorized companies formed to exploit the public’s enthusiasm. The South Sea Bubble is sometimes confused with the French Mississippi Bubble, which occurred during the same broad period.