What was the name of the 18th-century speculative bubble centered on the South Sea Company?

The South Sea Bubble was the 18th-century speculative bubble centered on the South Sea Company.

The South Sea Company was established in Britain in 1711 and received trading privileges connected with Spanish South America. In practice, its commercial opportunities were far smaller than many investors imagined. The company’s shares nevertheless rose dramatically as it promoted optimistic prospects and converted government debt into company stock.

Buying spread through London society in 1720. Investors borrowed money to purchase shares, and the rising price attracted more buyers. When confidence weakened, the market reversed. The company’s shares collapsed, ruining many investors and causing a major political scandal.

The episode is often mentioned alongside the Mississippi Bubble in France, which also burst in 1720, and Tulip Mania in the Dutch Republic. Those were separate episodes. The South Sea Bubble is especially significant because it involved public debt, a chartered company, political influence, and a large-scale share-market collapse.