Which famous 1720 bubble involved the South Sea Company?

The famous 1720 bubble involving the South Sea Company was the South Sea Bubble.

The South Sea Company received a monopoly over British trade with Spanish South America, although its actual trading opportunities were far more limited than many investors imagined. In 1720, Parliament approved a plan allowing the company to assume part of the British national debt.

Promotional enthusiasm drove its shares to extraordinary heights. Investors bought in hopes of further gains, and many companies formed to exploit the speculative mood. When confidence reversed, the share price collapsed and ruined numerous investors.

The episode is often grouped with the Mississippi Bubble in France, which also burst in 1720. Both were fueled by ambitious financial schemes, but they were separate bubbles involving different companies and governments. The South Sea scandal led to investigations and political controversy in Britain.