Which 1720 French financial bubble collapsed under John Law's Mississippi Company scheme?

The Mississippi Bubble was the 1720 French financial bubble that collapsed under John Law’s Mississippi Company scheme.

John Law, a Scottish financier, helped establish a bank and promoted the Compagnie d’Occident, later associated with the Mississippi Company. The company received trading privileges connected with French territories in North America, especially the Mississippi region.

Investors rushed to buy shares in Paris, and the company’s rising price became intertwined with the expansion of paper money and credit. Confidence eventually broke, producing a sharp collapse and severe losses for holders of the company’s shares and bank notes.

The Mississippi Bubble and Britain’s South Sea Bubble unfolded in the same year and are frequently studied together. Neither was simply a modern stock-market crash: both involved government finance, monopoly privileges, speculative share buying, and monetary experiments.