Which speculative bubble burst in Britain in 1720, involving the South Sea Company?

The speculative bubble that burst in Britain in 1720 and involved the South Sea Company was the South Sea Bubble.

The South Sea Company received a government-backed monopoly over trade with Spanish South America, although its actual trading opportunities were far more limited than investors expected. The company also took on government debt and promoted an ambitious share-selling campaign. Its share price rose dramatically during 1720.

As enthusiasm spread, investors formed companies around increasingly implausible schemes, producing the broader episode known as the Bubble. When confidence failed, South Sea shares collapsed later in 1720, ruining many investors and damaging public trust.

The South Sea Bubble is often discussed alongside France's Mississippi Bubble, which also burst in 1720. They were connected through international speculation but involved different companies and financial systems. The episode led to investigations and the Bubble Act, which restricted some joint-stock company activity.