What was the nickname of the 1720 collapse involving Britain’s South Sea Company?

The 1720 collapse involving Britain’s South Sea Company was called the South Sea Bubble.

The South Sea Company was founded in 1711 and received a government-backed monopoly over British trade with parts of Spanish South America, although its realistic trading opportunities were limited. In 1720, Parliament approved a plan for the company to assume part of the national debt, increasing its political importance and attracting investors.

Share prices rose dramatically as promotional claims and speculation spread. The company’s shares reached about £1,000 in August 1720 before collapsing later that year. Investors, including prominent public figures, suffered major losses.

The South Sea Bubble formed part of a wider speculative episode that also included John Law’s Mississippi Company in France. Parliament investigated the scandal, and several directors were punished. The event influenced British attitudes toward joint-stock promotion and financial speculation for generations.