Which 1720 speculation crisis followed the collapse of the South Sea Company in Britain?

The 1720 speculation crisis following the collapse of the South Sea Company in Britain was the South Sea Bubble.

The company received special privileges connected with converting part of the British national debt. Investors became convinced that its trade and financial prospects were extraordinary, and its share price rose dramatically during 1720. Public enthusiasm spread beyond the company itself, encouraging a wave of new ventures and speculative schemes.

When confidence reversed, South Sea shares plunged. The collapse harmed investors across social classes and prompted parliamentary investigations. The episode also damaged the reputations of prominent figures, including company directors and politicians associated with the scheme.

The South Sea Bubble is often discussed alongside the Mississippi Bubble in France, which also burst in 1720. They were separate companies and national episodes, although both reflected the period’s enthusiasm for paper wealth, exclusive commercial privileges, and rapidly rising share prices.