(1720) Speculation mania that caused financial ruin for many British investors.
Parliament's acceptance of a proposal by the South Sea Co. to take over the British national debt resulted in an immediate rise in its stock. After soaring from 128 1 2 to over 1,000 in nine months, the bubble of overvalued stock burst and the price per share dropped to 124, dragging other stocks down and leaving many investors ruined. An inquiry by the House of Commons found collusion by several government ministers.