Which 1720 speculation episode ended when shares of the South Sea Company collapsed in Britain?

The 1720 speculation episode that ended when South Sea Company shares collapsed in Britain was the South Sea Bubble.

The South Sea Company was established in 1711 to trade with Spanish-controlled South America, although its actual trading opportunities were limited. Its shares became extraordinarily popular after the company proposed converting government debt into company stock. Investors expected enormous profits from overseas commerce and from its close relationship with the British government.

The share price rose from about £100 in early 1720 to roughly £1,000 by August. The boom attracted aristocrats, merchants, and ordinary savers, while many other speculative companies appeared. When confidence weakened, investors rushed to sell. The company’s shares fell sharply by the end of 1720, ruining many investors and causing a political scandal.

The South Sea Bubble is often confused with France’s Mississippi Bubble, which collapsed in the same year. Both episodes were linked to ambitious companies, public debt, and speculative enthusiasm, but they occurred in different countries. Parliament investigated the South Sea scheme, and several politicians were accused of corruption.