Which 1720 speculative bubble burst after the South Sea Company’s shares soared in Britain?

The speculative bubble that burst after the South Sea Company’s shares soared in Britain was the South Sea Bubble of 1720.

The South Sea Company received a monopoly over British trade with parts of Spanish South America, although the actual commercial opportunities were far smaller than many investors imagined. In 1720, the company helped convert government debt into shares, encouraging widespread speculation. Its price rose dramatically before confidence collapsed.

The resulting crash ruined many investors and damaged public trust in company promoters and politicians. Parliament investigated the affair, and several officials were accused of corruption. The South Sea Bubble is frequently paired with France’s Mississippi Bubble, which also burst in 1720, but the two were separate schemes. The episode helped establish “bubble” as a lasting term for a speculative price surge followed by collapse.