What was the name of the 1720 speculation that involved the British South Sea Company?

The South Sea Bubble was the 1720 speculation centered on shares of the British South Sea Company.

The company received a government arrangement involving Britain’s national debt and promoted expectations of profitable trade with Spanish America. Its shares rose dramatically as investors bought into optimistic claims and speculation. The price later collapsed, ruining many shareholders and damaging public confidence.

The crisis affected prominent figures, including Isaac Newton, who invested in the company and lost money after selling and later re-entering the market. Parliament investigated the scandal, revealing corruption and improper influence.

The South Sea Bubble is often discussed alongside the Mississippi Bubble in France, which occurred during the same broad speculative era. They were separate schemes, although both demonstrated how credit, promotion, and crowd enthusiasm could inflate asset prices.