Which 1720 English financial bubble collapsed around the South Sea Company?

The South Sea Bubble was the 1720 English financial bubble centered on the South Sea Company.

The company received a government-backed monopoly over British trade with Spanish South America, although the practical trading opportunities were far smaller than many investors imagined. Its shares rose dramatically as promoters encouraged speculation and investors bought stock partly with borrowed money.

The price peaked in 1720 before confidence collapsed. The resulting crash ruined many investors and caused political scandal because prominent figures had promoted or benefited from the scheme. Parliament investigated the affair, and the episode contributed to restrictions on joint-stock companies under the Bubble Act.

The South Sea Bubble is often compared with John Law’s Mississippi Bubble in France, which also collapsed in 1720. They were separate schemes, although their failures helped define the era’s broader European speculative crisis.