The South Sea Bubble was the 1720 English speculative bubble centered on the South Sea Company.
The company received a government-backed monopoly over trade with Spanish South America, although its actual commercial opportunities were much more limited than many investors believed. In 1720, the South Sea Company proposed converting part of the British national debt into company shares. Enthusiasm drove the share price dramatically higher, attracting both experienced investors and members of the public.
The price collapsed later that year as confidence failed. Many investors lost fortunes, and the scandal damaged public trust in company promotion and financial governance. The South Sea Bubble occurred during the same broad period as France’s Mississippi Bubble, but they were separate schemes involving different companies and governments.