Which 1720 speculative bubble became an early famous example of a stock-market crash in Britain?

The South Sea Bubble became an early famous example of a stock-market crash in Britain in 1720.

The South Sea Company’s shares rose dramatically as investors believed the company’s trade privileges and government connections would produce enormous wealth. Much of the enthusiasm was speculative: the company’s expected commercial benefits were far greater than its demonstrated trading profits.

When confidence broke in late 1720, the share price collapsed. Investors across British society lost money, and Parliament investigated the conduct of company directors and public officials. The episode led to financial ruin for some prominent figures and damaged public trust in speculative ventures.

The South Sea Bubble is often mentioned alongside France’s Mississippi Bubble, which also collapsed in 1720. Tulip Mania occurred earlier in the Dutch Republic and concerned contracts connected to tulip bulbs, not shares in a British company. These episodes are related examples of speculation, but they are separate historical events.