Which 1720 British stock-market bubble burst after the collapse of the South Sea Company?

The South Sea Bubble was the British stock-market bubble that burst after the collapse of the South Sea Company in 1720.

The company received a government-backed monopoly over trade with parts of Spanish South America, although its actual commercial prospects were far more limited than public enthusiasm suggested. It also took on government debt, encouraging investors to buy its shares.

Shares rose dramatically during 1720 as speculation spread and new joint-stock schemes appeared. When confidence reversed, the price collapsed, ruining many investors and causing political scandal in Britain.

The South Sea Bubble is often discussed alongside France's Mississippi Bubble, which unfolded in the same period but involved John Law's Mississippi Company and the Banque Royale. They were related episodes of European financial speculation, not the same company or market.