Which 1720 financial bubble was triggered partly by speculation in shares of the Mississippi Company?

The Mississippi Bubble was a 1720 financial bubble driven partly by speculation in shares of the Mississippi Company.

The company was associated with John Law, a Scottish financier who helped establish a bank and a paper-money system in France. The Mississippi Company held a trading monopoly connected with French territories in North America, and Law promoted its shares while expanding the money supply and credit.

Investors pushed the shares to extraordinary prices, believing future trade and colonial wealth would justify them. Confidence collapsed when holders tried to convert paper money and shares into more stable forms of wealth. The price fell dramatically, causing financial losses and undermining faith in Law’s system.

The Mississippi Bubble occurred in the same year as the South Sea Bubble in Britain, but they were separate schemes. Both illustrate how monopolies, easy credit, promotional claims, and speculative enthusiasm can produce major market bubbles.