What was the nickname of the 1720 British stock-market bubble centered on the South Sea Company?

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The 1720 British stock-market bubble centered on the South Sea Company is called the South Sea Bubble.

The South Sea Company received rights connected with British trade in South America and took on government debt in exchange for shares and privileges. Investors expected enormous profits, although the company's realistic trading prospects were much smaller than the promotional excitement suggested.

Its share price rose rapidly in 1720 before collapsing later that year. The crash ruined many investors and led to parliamentary investigations. The South Sea Bubble happened at roughly the same time as France's Mississippi Bubble, but they were different companies and schemes. The episode also helped inspire later debates about financial speculation, corporate promotion, insider dealing, and the need for market regulation.

Source: Wikipedia · fact-checked Oct. 2026

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