Which 1720 speculative bubble and crash centered on shares of the South Sea Company?

The 1720 speculative bubble and crash centered on shares of the South Sea Company was the South Sea Bubble.

The South Sea Company was founded in 1711 and received a British government monopoly over trade with Spanish South America in exchange for taking on government debt. In practice, its commercial prospects were far less impressive than promoters suggested, but its shares rose dramatically as investors expected enormous profits.

Parliament passed the Bubble Act in 1720 amid the frenzy, and the share price reached about £1,000 in August. The price then collapsed, ruining many investors and causing a political scandal in Britain.

The South Sea Bubble is frequently discussed alongside the Mississippi Bubble in France, which also collapsed in 1720. They were separate schemes, although both demonstrated how credit, promotion, and unrealistic expectations could inflate asset prices.