The South Sea Bubble was a major financial crisis that occurred in Great Britain in 1720.

It centered on the South Sea Company, a British joint-stock company that was granted a monopoly on trade with Spanish South America.

The company's primary business became a financial scheme: it proposed to take over Britain's national debt.

To finance this, the company issued new shares of its own stock, the value of which was driven up by intense public speculation and exaggerated claims of its potential wealth.

The price of South Sea Company stock soared dramatically in the first half of 1720.

The speculative frenzy led to the creation of numerous other, often fraudulent, 'bubble' companies.

Many prominent politicians and aristocrats were involved in promoting the scheme and profited from it.

The bubble burst in late 1720, and the stock price collapsed, leading to a widespread financial panic and ruining thousands of investors.

The scandal led to a government inquiry and the passage of the Bubble Act to regulate the formation of new companies.

The South Sea Bubble became a famous cautionary tale about the dangers of speculation and financial corruption.