Which 1720 French company founded by John Law was central to the Mississippi Bubble crash?

The Mississippi Company was the French company central to the Mississippi Bubble crash in 1720.

John Law reorganized the company and obtained control over French colonial trade privileges, including claims connected with the Mississippi region. He also helped establish a paper-money system through the Banque Générale, later linked to the Banque Royale. These arrangements encouraged investors to exchange currency and government debt for company shares.

Share prices rose dramatically in 1719 and early 1720. The boom relied heavily on confidence in Law’s system and exaggerated beliefs about the wealth of Louisiana. When investors sought to convert paper claims and shares into more reliable assets, confidence broke down and prices fell.

The Mississippi Bubble and the South Sea Bubble happened in the same year but were separate episodes. Law’s experiment also contributed to long-lasting distrust of paper money in France.