Which 1720 London speculation became known as the South Sea Bubble?

The 1720 London speculation became known as the South Sea Bubble. It centered on the South Sea Company, which received a government-backed monopoly over British trade with parts of Spanish South America.

The company promoted its prospects while investors bought shares at rapidly rising prices. In reality, its expected trade opportunities were far smaller than the public excitement suggested. Company directors and prominent investors helped spread optimism, and many people borrowed money to join the boom.

The share price rose dramatically during 1720 before collapsing later that year. The crash ruined many investors and triggered political scandal in Britain. The South Sea Bubble is often discussed alongside France’s Mississippi Bubble, but they were separate schemes and separate episodes. Parliament investigated the company, and several officials were accused of corruption.