Which 1720 speculation crisis centered on shares of the South Sea Company?

The 1720 speculation crisis centered on South Sea Company shares was the South Sea Bubble.

The South Sea Company received a British government charter in 1711 and was granted rights connected with trade in the South Seas, a name then used for parts of the Pacific and South America. In 1720, investors bought shares enthusiastically after the company proposed converting government debt into company stock. Expectations of enormous commercial profits pushed the share price dramatically higher.

The company’s actual trading prospects were far smaller than the public excitement suggested. When confidence weakened, the share price collapsed, ruining many investors and causing political scandal in Britain. Parliament investigated the company’s promotion and the conduct of officials and insiders.

The South Sea Bubble is often mentioned alongside the Mississippi Bubble, which unfolded in France during the same period. They were separate schemes, although both involved speculative shares and confidence in ambitious trading and financial projects.