What was the name of the 1720 market bubble centered on shares of a British trading company?
Answer
South Sea Bubble
Answer
South Sea Bubble
The 1720 market bubble centered on shares of a British trading company was the South Sea Bubble.
The South Sea Company received a government-backed monopoly over trade with parts of Spanish South America and took on British government debt. Investors were encouraged by promotional claims and rising share prices, even though the company’s actual trading prospects were limited. Shares climbed dramatically during 1720 before collapsing later that year.
The boom attracted speculative companies and ordinary investors, creating a wider episode of financial excitement in Britain. Parliament investigated the scandal, and several directors were accused of corruption or improper conduct. The South Sea Bubble is often mentioned alongside France’s Mississippi Bubble, which burst during the same period. It is not the same event as Tulip Mania in the Dutch Republic, an earlier episode involving tulip bulbs rather than shares in a British company.
Source: Wikipedia · fact-checked Oct. 2026