Which 1720 speculative bubble was centered on a company trading rights to the South Seas?

The South Sea Bubble was the 1720 speculative bubble centered on the South Sea Company and its trading rights connected with the South Seas.

The South Sea Company was founded in 1711 and received a government-backed monopoly over trade with Spanish South America, although the expected commercial opportunities were far more limited than many investors believed. In 1720, a debt-conversion scheme and promotional claims helped drive its shares to extraordinary heights.

Prices then collapsed, ruining many investors and causing a major political scandal in Britain. Parliament investigated the company’s conduct, and prominent figures faced accusations of corruption. The episode is one of the earliest famous examples of a securities bubble and crash.

The South Sea Bubble happened alongside John Law’s Mississippi Bubble in France, but they were separate schemes. Tulip mania occurred in the Dutch Republic in the 1630s and involved tulip bulbs rather than company shares.