What was the name of the 1720 English speculative collapse involving the South Sea Company?
Answer
South Sea Bubble
Answer
South Sea Bubble
The 1720 English speculative collapse involving the South Sea Company was called the South Sea Bubble.
The South Sea Company received a government-backed monopoly connected to trade with Spanish South America, although its realistic trading prospects were far more limited than promotional claims suggested. Its shares soared in 1720 as investors expected enormous profits and as the company took over government debt.
Prices then collapsed as confidence failed. Many investors, including prominent figures, suffered heavy losses, and Parliament investigated corruption and mismanagement. The scandal damaged public trust in financial promotion and contributed to new restrictions on joint-stock companies.
The South Sea Bubble occurred in the same year as France's Mississippi Bubble, another famous speculative episode associated with John Law. They are separate events. Tulip mania, meanwhile, belongs to the Netherlands in the seventeenth century and is not the name of the 1720 English collapse.
Source: Wikipedia · fact-checked Oct. 2026