The speculative bubble that burst in Britain in 1720, centered on a trading company, was the South Sea Bubble.
The South Sea Company received a government charter to trade with Spanish South America, although its actual trading opportunities were limited. It also took on British government debt, encouraging investors to exchange government obligations for company shares. Promotional claims and rising prices attracted both wealthy investors and the wider public.
Shares climbed dramatically during 1720 before confidence collapsed. Parliament investigated the company, and revelations of corruption intensified the crisis. Many investors lost fortunes, including members of the political elite.
The South Sea Bubble is often discussed alongside France’s Mississippi Bubble, which collapsed in the same year. They were separate schemes, not two names for one company or event.